March Assembly Meeting of IMEAK Chamber of Shipping was held. In addition to the video conferencing method, the meeting, which was attended in a limited number by taking precautions against pandemic conditions in the Chamber Assembly Hall, was chaired by the Speaker of the Assembly, Salih Zeki Çakır. At the meeting, the 2021 Balance Sheet and Final Account of the Chamber of Shipping were approved.
Tamer Kıran, Chairman of the Board of Directors of IMEAK Chamber of Shipping, also thanked the members of the Assembly for approving the 2021 Balance Sheet and Final Account of our Chamber and stated that they will continue to work in the same financial discipline in 2022.
Russia – Ukraine War
Tamer Kıran pointed out that unfortunately, undesirable developments are taking place in the Black Sea region, which has been the scene of tension between Russia and Ukraine for a while. Add that after the military operation launched by Russia on this country on February 24, the conflicts continued throughout Ukraine and the situation of the civilian population was causing concern.
Kıran pointed out that many of our ships serve in the Black Sea, a region where our trade continues intensively. He noted that since the first day of the crisis, the Chamber has been in close contact with the Ministry of Foreign Affairs, the Ministry of Interior Coast Guard Command and the Main Search and Rescue Coordination Center established under the Ministry of Transport and Infrastructure, closely monitoring the developments and announcing national and international warnings regarding the region to the members.
Tamer Kıran said, “At the point, we have arrived, there has been no other attack other than the attack on a Turkish-owned foreign-flagged ship, thankfully without loss of life or injury. Operations at the Ukrainian and Russian ports are still at a standstill. As far as we can determine as of today, there are 48 Turkish-owned ships in these ports. It is our greatest wish that these ships leave the region safely. I would like to emphasize that our ships sailing close to the region should also comply with the security warnings at the highest level.”
He said that the latest geopolitical developments that started with Russia’s Ukraine operation have emerged as a new and important risk on global growth and inflation and that this hot war environment in a region close to the center of Europe carries the risk of slowing down the economic activity all over the world, especially in this region. Tamer Kıran emphasized that the longer the process takes, the more the risks on trade and growth will increase.
Kıran said, “While our economy in 2022 continues to accelerate towards exports based on industrial production, the outbreak of war between two countries, which are our very good foreign trade partners, is an undesirable situation for us. In the upcoming period, I believe that we should not ignore the negative effects of the course of the war, especially energy, food, and tourism. It is our greatest wish that this war between the two countries, which poses a serious threat to the security of our region and the world, ends as soon as possible. Hopefully, steps will be taken to ensure peace as soon as possible, especially the loss of life will be stopped.”
A historically significant growth has been signed
Tamer Kıran stated that in line with the expectations, the Turkish economy grew by 9.1 percent in the last quarter of 2021 and by 11 percent throughout the year, thus achieving a growth well above the average growth rate of OECD countries and even the world economy. “We must clearly state that we have doubled the global economic growth rate. More importantly, instead of a syndrome in which we grew up with a high current account deficit, this time the current account deficit was reduced from 35.5 billion dollars in 2020 to 14.9 billion dollars, and historically significant growth was achieved. One thing we will especially mention is that the Turkish economy has grown in correlation with the recovery in global trade, and in this sense, our maritime companies, which are the main carriers of our foreign trade, have a great responsibility.”
Tamer Kıran stated that in addition to the announced growth rate, it is noteworthy that the current national income on a dollar basis has started to rise again after 6 years. The Gross Domestic Product, which was 717 billion dollars in 2020, increased by 12 percent to 802.7 billion dollars at the end of 2021, so that at the same time, per capita income reached the level of 9,539 dollars with a remarkable increase.
Kıran said, “Our exports of goods and services and household consumption throughout the year led to growth. As for the contribution of foreign trade, while our exports increased by 24.9% in 2021, imports increased by only 2 percent. When we look at what is the driving force in all this positive development, we should express the influence of the industrial sector with appreciation. The share of our industry sector, which has been expressed for years for sustainable growth, in the Gross Product of 2021 has increased from 22.6% in the previous year to 26%.”
Stating that they see that the globally high inflation still creates stress in our country, Tamer Kıran said, “Yes, although there is a significant increase in inflation, as we have just mentioned, we are achieving a serious economic growth this time with the enormous development in both our industry and our exports.”
Again, highlighting that the main point of concern for this year is the decision of the US Federal Reserve, the FED, to increase interest rates, Tamer Kıran said, “Now, while the US Federal Reserve was expressing that it would start increasing the interest rates in March, a war broke out. Accordingly, we estimate that the FED will remain at a rate that will show that it has kept its promise, without raising interest rates as high as expected at its March meeting. However, as a result, the period of global liquidity control begins and we have to be more cautious, especially for the medium term.”
Positive developments in maritime markets
Tamer Kıran stated that they generally followed the positive developments in the maritime market in February and that the bulk cargo freights, which started with a decline in 2022, recovered in the last week of February and reached the levels in the first week of January, adding that port congestion and logistics disruptions affecting the container market in 2021 continued at the beginning of 2022. It is predicted that this situation may continue throughout the year. On the other hand, Tamer Kıran stated that the container market, which started in 2022 with high levels, reached the highest figures of all time in February. Accordingly, in the container new shipbuilding market, 34 ships with a total estimated investment value of 311 thousand TEU were ordered in January, with an estimated investment value of $3.8 billion.
Tamer Kıran stated that according to the foreign trade data of the Turkish Statistical Institute, our country’s total exports in 2021 are 179 million 261 thousand tons, and its total imports are 230 million 947 tons. Accordingly, 144.9 million tons of our exports and 213.1 million tons of imports are made by sea.“Thus, 87.5 percent of the total exports and imports in 2021 were carried out by the sea.”
Effects of climate change measures on Turkish-owned fleet
Tamer Kıran stated that they have completed the “Impact Assessment Analysis of Climate Change Measures in Maritime Trade on the Turkish-Owned Ship Fleet” project, which was initiated last year within the scope of the Chamber of Shipping, and after sharing the results of the Project, he said,
“As a result, for the Turkish-owned fleet to comply with all these rules, we also need to implement EU practices. In this context, just like in the EU, it is of great importance that we establish our own Emissions Trading System, receive compensation from the ships arriving at our country’s ports, and use it in emission reduction projects to support the Turkish-owned fleet by allocating a share of the revenue to be obtained. We know that there are studies for the establishment of a similar system in Turkey, so I would like to state that this will be one of the important issues that we need to work on in the coming period.”
Unfortunately, in the last days of February, made great efforts to the Turkish business world and the maritime sector, Founding Member of the Assembly and Former Member of the Board of our Chamber, the former Chairman of the Union of Chambers and Commodity Exchanges of Turkey and the father of Faruk Miras, the Treasurer of the Board of Directors of our Chamber. He stated that they were deeply saddened by the death of Fuat Miras, with his knowledge and experience, made a great effort in the establishment of our Chamber.
Tamer Kıran said, “He knew the state well, represented our Chamber and our industry in Ankara exceptionally well, was extremely helpful, and was known as Fuat elder brother in our industry and the Anatolian business world thanks to these virtues. With his death, unfortunately, another leaf has been torn from the history of the maritime industry. I wish God’s mercy on the deceased, my condolences to his grieving family, relatives, and the entire maritime community.”
Tamer Kıran congratulated all working women, especially in the maritime sector, on the occasion of International Women’s Day on 8 March.
Tamer Kıran once again commemorated our martyrs, especially Gazi Mustafa Kemal Atatürk, who sacrificed their lives for our country, with mercy and gratitude, on the 18 March Çanakkale Victory and Martyrs’ Day. He wished Berat Kandili, which will be realized on Thursday, March 17, to bring health, peace, and blessings to our country and the Islamic world.
At the meeting, Retired Brigadier General Istanbul Aydın University Faculty Member Dr. Naim Babüroğlu made a presentation on “Ukraine Tension in the Geopolitical Power Struggle”. The meeting was attended by the Chairman of the Board of Trustees of Istanbul Aydın University, Associate Professor Dr. Mustafa Aydın, Accounting Member of the Board of Directors of the Service Exporters Association, Mehmet Erdogan.
