8,643.88 TRY BIST 100 BIST 100
4.87 CNY CNY CNY
34.34 USD USD USD
37.42 EUR EUR EUR
0.13 CNY CNY/EUR CNY/EUR
45.07 TRY Interest Interest
75.11 USD Fossil Oil Fossil Oil
32.50 USD Silver Silver
4.45 USD Copper Copper
102.15 USD Iron Ore Iron Ore
374.00 USD Shipbreaking Scrap Shipbreaking Scrap
3,026.19 TRY Gold (gr) Gold (gr)

What will be the impact of the Red Sea incident on transportation costs?

A ship carrying steel coils to a number of Turkish buyers operated by Korean steelmaker Posco through its trading company Samsung has been hijacked by pirates off the coast of Somalia. This situation led to the halt of passages in the Suez Canal, which provides 12% of global trade.

What will be the impact of the Red Sea incident on transportation costs?

The attacks of Iran-backed Houthis in Yemen against commercial ships passing through the Suez Canal and calling at Israel also affected Türkiye. Houthis' attacks on ships sailing in the Red Sea led to the halt of passages in the Suez Canal, which provides 12% of global trade. This situation caused many international transport companies to change the route to the Cape of Good Hope, increasing voyage times from 9 to 30 days and increasing transportation costs by 60%.

Some sources said that although dry cargo ships that concern Türkiye continue to use the Suez Canal, large container ships that really affect Turkish foreign trade should not enter Suez in order not to risk their personnel, which will cause transportation costs to increase by 20-60 percent in a week.

"Transportation cost increased to 2 thousand dollars"

Sources said that the cost of empty containers going from Istanbul to the Far East increased from 500 to 800 dollars, and noted that the transportation cost of containers coming from China to Türkiye increased to 2 thousand dollars, and that imports from the Far East would be negatively affected in particular.

“There will be a rapid increase in container prices”

Mustafa Gültepe, President of the Turkish Exporters' Assembly, said that there was an atmosphere of panic as a result of the attacks and the decisions taken by the transportation companies and said, "In the first place, there was a rapid increase in the prices of containers going to the Far East. There is an average cost increase of 2 times. Experts state that the cost per FEU may rise to 4 thousand dollars. But these are possibilities for now.” said.

Comments

1 comments
Increased logistic costs will make the material less viable

Only +plus subscribers can access this content.

SUBSCRIBE now to share your thoughts on the markets and get more comments.
SUBSCRIBE If you already have an account Sign In

Most read news

Malaysia initiates review of anti-dumping duties on stainless steel imports

Tuesday, November 5, 2024

China’s stainless steel exports increased by 33,7% in September

Tuesday, November 5, 2024

Kazakhstan government extends ban on scrap exports

Tuesday, November 5, 2024

Thyssenkrupp Steel Europe plans to renovate Duisburg plant

Tuesday, November 5, 2024

Türkiye's iron and steel export value was 7.8 billion USD in January-September period

Tuesday, November 5, 2024
Follow List
Expand
Your watch list is empty

Add your favorite commodities for quick access and don't miss the latest price change news.


There are no news categories you follow
Edit Notification Preferences
E-bulletin subscription
Sign up to receive the latest news and daily iron prices by e-mail and sms
Become a Plus Subscriber Now!
Try it free for 3 days!
Subscribe Now
Neutral Prices
Be informed
Provincial Iron Prices
Comments and Analysis
Subscribe Now