UTİKAD, the International Transport and Logistics Service Providers Association, has published a report that will mark the sector. The report, prepared in light of the knowledge and experience of UTİKAD Sectoral Relations Department, is signed by Sectoral Relations Manager Alperen Güler.
Moving from global logistics, UTİKAD Logistics Sector Report 2019, which examines the development of the Turkish logistics industry in recent years on the basis of modes of transportation with statistical data, included important factors affecting the industry from Brexit to international indices.
UTİKAD Sectoral Relations Manager Alperen Güler made the presentation of the report shared with the public at UTİKAD Traditional Press Meeting held on January 9, 2020. Here draw the basic framework of the logistics sector in Turkey, sector stakeholders, be a source of reference for the sector to universities and media organizations, Turkey's foreign trade report prepared for informational purposes for the shares and the development of transport modes featured headlines:
WHY BREXIT IS IMPORTANT?
Why is Britain's process of leaving the European Union called Brexit important for us? The European Union often appears as a political structure, but there is actually a common market and customs union. The separation of Britain from this union will make England the third country before the European Union. This means that thousands of foreign trade and logistics companies that have previously benefited from EU membership concessions must keep up with the new rules when trading with the UK. So the fact that the UK customs procedures, tariffs, trade partners in both the EU on issues such as import and export declarations as well as new applications for commercial partners in Turkey will be involved. In this case we look at England to Turkey Turkey's 15 million dollar trade volume and also in a special volume of $ 5 billion trade surplus this question. Said volume of maintaining and enhancing the Brexit closer monitoring of the process by the local foreign trade and logistics sector in Turkey is of paramount importance.
US-CHINA COMMERCIAL WARS
The process, which is defined as trade wars between the USA and China, actually consists of the additional taxes applied by the two countries on the products imported from each other. China is double the imports from the USA
is a country that exports more than the USA. The product-oriented trade war between the two countries also has the potential to affect the service offered to the products. During the period we could call this trade war in November-December of last year, some softening was seen. For example, China has pulled down the extra tariffs it has brought to several imported goods. However, the continuation of this process without any flexibility may force China to re-design the supply chain structures of especially technology and apparel companies, which consider themselves to be the production base and build their global supply chain configuration accordingly. Of course, when talking about China, it is necessary to mention the Belt and Road initiative. With the initiative it took in 2013, China launched the Belt and road initiative covering 1 billion people and 3 countries worth 65 trillion US dollars. Thanks to the project, products can be transported to China, Asia, Europe and Africa countries with more competitive costs by rail, road and sea.
Within the scope of the Belt and Road initiative, it is necessary to share some data published by China. The period until July 2019 compared to the same period of the previous year was China; It increased its trade volume with the United Arab Emirates by 16.1%, 11.3% with ASEAN countries, 10.8% with European countries, 9.8% with Russia and 3% with African countries. In this context, the fate of trade relations between the USA and China and the developments regarding the Belt and Road Initiative can also be effective in observing comprehensive structural changes in the global supply chain.
COMMERCIAL CONVENIENCE AGREEMENT MAY DECREASE BY 91% IF THE PROVISIONS ARE FULLY APPLIED
According to a study by the World Trade Organization; If all the provisions stipulated by the Trade Facilitation Agreement are enforced, it is estimated that the average import time in the world will decrease by 47%, ie almost half, and export time by 91%. In addition to these improvements in terms of duration, of course, the trade facilitation agreement is 14.3% cheaper among trade. The volume of global trade growth of 1 trillion US dollars a year is also among the estimates. Of course, although the provisions of the Trade Facilitation Agreement are generally directed towards the movement of goods, all components of international logistics are in the middle of every step to be taken in order to facilitate trade. States can control the movements of goods by controlling the customs gates, as well as regulate the logistics sector with the incentives, regulations, competition conditions regulations they will bring to the logistics sector. In this context, the global success of the Trade Facilitation Agreement is mostly based on the correct construction and implementation of the rules that outline the logistics sector, in which the private sector is active, that is, logistics also plays a role that supports and enables the free and rapid movement of goods.
SOURCE OF 14% OF TRANSPORT SECTOR GLOBAL GREENHOUSE GAS Oscillations
Since the transportation sector is the source of 14% of global greenhouse gas emissions, studies are carried out by both governments and supranational bodies to eliminate these negativities. For example, in September, Germany announced its Climate Action Plan 2030. According to the plan, emission emissions of the transportation and construction sectors will be priced, and companies will pay the government at the rate of emission emissions. In addition, the application known as IMO 2020 within the framework of the global-environmental responsibility of the maritime industry came into effect on January 1. However, a 0.5% limit was set on the sulfur content of the fuel used by the ships.
GIVING THE MOST SHARE FROM PUBLIC INVESTMENTS AND COMMUNICATION SECTOR
Although a decrease was observed in the public investment budget in 2019 compared to 2018, public investments were mostly invested in the transportation and communication sectors. Meanwhile, the share of the communication is only 152 million TL. The budget allocated for transportation is 20.1 billion TL. It is planned to spend it for 7.5 billion lira railway, 6.7 billion lira highway, 4.3 billion lira urban transportation, 1 billion lira airline.
SIZE OF LOGISTICS SECTOR
As much as it is curious in the logistics sector, it is actually a difficult issue to measure. Since the Transportation and Storage activity branch classification includes passenger transportation activities, it is not sufficient to present the size of the logistics sector in relation to the direct load. For this reason, it is largely based on assumptions in evaluations regarding the logistics industry. The approach accepted both in the sector and the academy is that the logistics sector has a share of approximately 12 percent in GDP. It is accepted that 50 percent of this size is due to the activities of the companies providing direct logistics services and the other 50 percent is caused by the logistics activities carried out by the companies that trade goods. In this context, GDP in 2018 was 3 trillion 700 billion 989 million TL. In 2018, the size of the logistics sector was accepted as 444 billion TL. GDP data for 2019 has not been released yet, but we have an estimate that we can accept as a guide. According to the New Economy Program published in autumn, GDP in 2019 is estimated at 4 trillion 269 billion TL. In this context, it can be said that the size of the logistics sector has exceeded 2019 billion TL in 500.
WITH THE LOWEST SHARE OF THE RAILWAY AGAIN
Seaway transportation has the biggest share in both import and export on value basis. In the period from 2009 to the third quarter of 2019, the seaway has a share of 65-70 percent in import transportation. In the same period, the share of the highway has a decreasing trend in imports, whereas almost 20 percent of imported cargoes are transported by road. Airline transportation, on the other hand, has increased its share in import transportation since 2009. The share of railways in imports is less than 2012 percent since 1. The ratio of cargoes carried by sea in exports has increased since 2009 and the share, which was 2009 percent in 47,05, became 2019 percent at the end of the third quarter of 62,42. The opposite of the increasing share of maritime exports is observed in the export loads carried by the highway, and the share of the highway, which was 2009 percent in total export transportation in 42,30, was 2018 percent in 28 and 2019 percent in the third quarter of 28,59. Although it is not possible to determine any trend regarding the share of the airline in export transportation in the analyzed period, its share varies between 2011 percent, the lowest rate in 6,42, and 2012 percent, the highest rate in 14,40 the following year. It is observed that the share of the railway in exports has the lowest share and the share of the exports in all years was less than 0,93 percent, including 2011, which was the highest share in the period examined.
THE LARGEST SHARE OF THE SEA BASED INVESTIGATIONS
Some trends that have become evident over the years on the basis of the weight of the cargo carried in import and export also stand out. The maritime share in exports by weight has 2018 percent at the end of 78,25 and this rate has become 2019 percent at the end of the third quarter of 80,15. Although it is seen that the ratio of seaway in exports on the basis of weight has increased since the beginning of the period examined, the opposite of this trend is observed in road transports. Road export transportation on a weight basis, which was 2009 percent in 25,24, shows a proportional decrease as of 2015: While the share of road export transport on weight basis was 2018 percent at the end of 20,44, this rate was 2019 percent at the end of the third quarter of 18,54. Railway export transports continue to receive the smallest share on the basis of weight as well as on the basis of value. The share of railway transportation, which was 2009 percent in exports in 1,15, was below 1 percent in all the years that followed, in imports.
REGISTERED INCREASE IN A KILOGRAMMIC LOAD VALUE IMPORTED BY THE AIRLINE
The report also included data on the average value of the cargo transported with each mode of transport. It was pointed out that the value of 1 kilogram of cargo imported by airline reached 2019 USD at the end of the third quarter of 3. The same value for 258.49 was $ 2015. The value of a weight load exported by airline within 153.76 years increased by approximately 5 percent. In the third quarter of 68, the airline import freight is 2019 percent more valuable than the export freight, which has an average value of 11,51 USD per kilogram. Of course, although not as tragic as the airline, a similar situation is valid for the highway. On average, 22,5 kilogram of cargo we import is always more expensive than the loads we export. This situation reveals the point that the domestic industry and production sector should evolve.
THE LOGISTICS PERFORMANCE INDEX IS LIVING
The indexes published worldwide in UTIKAD Logistics Sector Report 2019 were also included. Logistics Performance Index; examines the logistics performances of the countries under six criteria. These include customs, infrastructure, international shipping, quality of logistics services, tracking and traceability of shipments, and finally delivery of shipments on time. In 2018, Turkey ranks 160 among 47 countries. Compared to previous years, it has performed worst ever in 2018. Turkey's progress compared to 2016. None of the six criteria it can not be observed that even experienced a significant decline.
Ease of Doing Business Index, Turkey in 2017, 60 had complimented very well by getting together with concerned government bodies to work and Turkey had created action plans to remove the higher order. With reforms taken in Turkey in 2018, 43 applications, and in 2019 moved up to 33. for the report of the logistics industry "Trading Across Borders" topic in Turkey is # 44. In this context, measures to be taken in order to increase Turkey's exports is still possible to say that no clear direction of development.
Each year, prepared and published by the World Economic Forum Global Competitiveness Index, Turkey ranks in 2018 and 2019 in 61. According to the report, Turkey's use of information and communication technologies and infrastructure and the labor market has made progress in the field. At the same time the report is noted Turkey has made progress under air transportation in the area of infrastructure and road transport titles but high inflation due to macro-economic stability in the area and due to the non-tariff barriers merchandise that perform poorly in the area of the market.
UTİKAD Logistics Sector Report for 2019 CLICK HERE
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