The impact of Israel's assault on Gaza is becoming more evident day by day on the overall balances in the region. The political and economic dynamics are directly affected, with serious disruptions in the movement of trade and shipping.
Turkey, one of the countries most affected by this war, faces significant challenges. In an exclusive interview with Al Jazeera Net, Turkish Transport Minister Abdul Qadir Oral Oglu sheds light on how the conflict has disrupted commercial transport and discusses the state of shipping from Turkish ports to Israel, along with his perspectives on the new economic corridor between India and Europe.
Israel's War on Gaza's Broad Influence
The Mediterranean basin is not just a region affected by such events; it influences global trade. Consequently, the global trade and prices, including those in Turkey, have felt the brunt of this war.
Particularly, the incidents occurring in the Suez Canal and the Red Sea have intensified this negative impact.
Houthi Attacks on Shipping and Its Consequences for Trade Movement
Following attacks by the Houthis on several vessels, the number of ships passing through the Suez Canal decreased by approximately 10%, with others diverting to the Cape of Good Hope at the southern tip of Africa, covering an additional distance of 3,500 miles. A vessel from China reaching the Mediterranean via the Cape of Good Hope will have its journey extended by 10 days. When fuel costs are also considered, the price of containers has shot up from $2,500 to $3,500.
A 10% decrease in Suez Canal traffic and higher costs
90% of Ships Maintain Their Course: Will This Affect Prices?
Indeed, a large proportion of ships continue to pass through the Suez Canal, but this time they pay higher insurance premiums due to increased risks. Thus, there will be an uptick in transportation costs.
Regardless of whether ships go via the Cape of Good Hope or pass through the Suez Canal, an increase in costs is inevitable, which will ultimately affect the prices of the transported goods.
Turkish Transport Minister (right) with an Al Jazeera Net reporter (Al Jazeera)
Have Any Turkish Vessels Been Attacked?
To date, our ships have not been targeted by the Houthis or any other group.
The Discussion Around Turkish Ships Heading to Israeli Ports
Between October 7th and December 31st, 2023, 701 vessels sailed from Turkish ports to Israel, averaging about 8 ships per day.
These figures include the total number of ships departing directly to Israel and those stopping at our ports en route to Israeli ports.
From October 7th to December 31st, 2023, 701 ships sailed from Turkish ports to Israel, or about 8 ships per day.
Conflicting Reports on Shipping Numbers
Transparency is key, and ship movements are already closely monitored by all nations. Nothing is hidden, and we provide the precise figure of 8 ships per day.
The Volume of Goods These Ships Carry from Turkey and Transit Countries
Approximately one-third are in transit, with the remaining two-thirds originating in Turkey—meaning 480 vessels went directly from Turkey to Israel since October 7th, and 221 transited through Turkey.
Comparing the Current Numbers to the Pre-War Period
A comparison with the same period from the previous year reveals a 30% overall decrease in ships heading to Israeli ports. While 2.8 million tons of cargo were transported at that time, the figure now stands at 1.9 million tons.
Goods Bound for Palestine
Unfortunately, it's impossible to differentiate, as since the 1967 accord, Israel controls the entire coastline and ports, preventing Palestinians from enjoying freedom. All goods destined for Palestine must pass through Israel, and the volume of goods heading there is minimal under the current war conditions.
Ministry's Awareness of Cargo Contents
We manage the vessels' movements, while cargo contents are directly inspected by the Ministry of Commerce and Customs.
Turkey's Humanitarian Aid to Gaza
We have sent three humanitarian aid ships so far, including everything from food and medical equipment to ambulances and shelters.
These ships have unloaded their cargo at Egypt's Al Arish port and have been handed over to the Egyptian authorities there. We are ready to send more assistance if needed.
The Indian Corridor project is non-viable; there's an alternative
The Indian Corridor Evaluated as an Alternative Trade Route
In transportation, paths with the fewest diversions are preferred, as multiple diversions mean a loss of time.
For us, the Indian Corridor project has not been worked on extensively. The route is not seen as practical; as it requires stops in the Arabian Peninsula, followed by transit through four countries by land, before reentering the sea at Israel's Haifa port, then reloaded onto ships to European ports and another land crossing… a sea-land-sea-land route. We regard this multi-modal route as ineffective.
Haifa Port: A Security Problem for the Indian Corridor?
The decrease in vessel traffic at Israeli ports underscores a security issue; if our ships' arrivals have dropped by 30%, similar reductions from other countries are likely. The Indian Corridor is thus fraught with several problems.
President Erdogan on the Infeasibility of a Corridor without Turkey
Turkey is the safest country in the region, secure and fast, its infrastructure ready in many respects. Consider the east-west axis, and it's clear that Turkey is the safest bridge. With many regional countries lacking in security and infrastructure, we see no possibility for the existence of the corridor without Turkey.
An Alternative Proposal for the Corridor
We have the "Development Road" project, wherein a vessel from Asia and the Pacific enters the Arabian Gulf, unloads at Iraq's Fao Port, then reaches Turkey and subsequently Europe directly via Iraq, through railroads and newly constructed roads. This alternative route is cost-effective, shorter, and involves fewer diversions. We wish for the active participation of the UAE, Iran, and Iraq in this project and are discussing it with other Gulf states.
Indian Corridor vs. China’s Silk Road
Global trade expansion will necessitate many alternative routes, and the costly and time-consuming Indian Corridor will likely be overshadowed by others. Conversely, the "Development Road" is still a concept, with progress seen in the construction of Fao Port by the UAE, to be partly completed next year and fully by 2028.
As infrastructure for many projects is being established, the project will come to fruition, with traders naturally opting for the most efficient and cost-effective path.