Every year, many goods are transported between Turkey and the US, which is why one of the reasons why the logistics sector has grown significantly. In the last few years, this logistics sector has spiked, and it’s only increasing.
A lot of different items are shipped between Turkey and the US regularly, including boat spare parts, animal products, food supplements, solar panels, and much more through e-commerce, retail and many varying consignments. Making this niche extremely diversified.
Logistics in Turkey
To know more about the logistics between Turkey and the US, it’s important to know more about the logistics in Turkey. The number of freight ships moving in and out of Turkey has been increasing for quite some time.
The increase was first seen way back in 2006, and it has been growing ever since. In this tenure, the freight volume at the seaports has increased by a whopping 39 percent. The rail transport has increased as well, which now stands at a staggering 11.7 billion ton-kilometers. However, even though the traffic in the seaports increased by a great deal, the traffic stayed relatively stable in the rail transports. This signifies that Turkey is transporting more with other countries including the US.
The greatest benefit of Turkey is its location, which is geographically very suitable for overseas trading. Due to its strategic location, Turkey has a good connection with countries of Europe, Asia, as well as the Middle East. These regions definitely make up for a huge chunk of traffic and revenue that Turkey is experiencing nowadays.
Other than these, there’s the US and other American countries as well. Because of its suitable location on the globe, turkey is used as a transshipment hub of many countries.
Why is This Sector Good for Investment?
Even though Turkey has a great logistics sector, it’s still ripe for investment. It’s very surprising that a country that earns 50% of foreign trade through Sea Freights still has a very unorganized logistics sector.
Due to this, the third-party logistics (3PL) service providers who are affiliated with this sector get to earn a huge chunk from this. In fact, things will only get better, as the government of Turkey is expecting that the levels will rise to $1.1 billion by 2023. It’s also predicted that half of this will be from exports only.
As you can see, the present situation of the logistics sector of Turkey is good enough, but it will get only better. So, if you’re willing to invest in this sector, this is the right time to do so.
Other than this, the domestic logistics sector of Turkey is likely to reform as well. The consumer habits of the citizens of Turkey are changing by a great deal. The people are more inclined towards renting than buying, e-commerce and consignments agencies are booming.
All of these depend heavily on the logistics sector. The renting behavior increases transport, as the goods will have to be delivered and then taken back after some time. Then again, the e-commerce sector is completely dependent on the logistics sector. To get the products delivered to the doorstep of the consumer, the product must go through all the phases of the supply chain including the last-mile.
As these mentalities and market trends are growing in Turkey, the pressure on the logistics sector is only going to increase. This is why it’s a great time to invest in the logistics sector of Turkey.
Through Which Medium do They Ship from Turkey to the US?
There are mainly two shipping options when it comes to shipping anything from Turkey to the US. You can either ship through air freight or through sea freight. Now, a lot of people get confused here, as both of them offer some pros and cons. Those are so well balanced that it’s tough to choose one over another.
In this section, we’ll try to discuss all the pros and drawbacks so that choosing the right one for you is easier.
If there’s one good thing about air freight, then it’s the speed. If you want the things to be sent in just two to three days, then you’ll be better off choosing this method. You can send as much volume as you want, as there’s no bar on that.
However, air freight can be pretty expensive. As your goods will be sent in a matter of three days maximum, you’ll end up paying a hefty premium for it.
Then there’s ship freight. You’ve guessed it, ship freight is extremely cheap. Even though it’s super cheap, a lot of prefer air cargo over ship because it’s super slow as well. The cost of ship freight will be around five times less expensive than air freight. However, if you send anything through ship cargo, then it’ll take at least several weeks to reach its destination.
So, what should you go for?
It depends on your purpose. If you’re moving from one country to the other for good, then you’ll do better going for the ship cargo. This is because ship cargo is very cheap, and even though it takes a few weeks, chances are that you’re going to need a few weeks to reach there yourself.
On the other hand, if you need to send a few things very fast, then you can go for air cargo. However, we never recommend sending too many things on air cargo, as it gets very expensive from time to time.
If you send the things through the ship, then you’ll be sending them through containers. One good thing about this is you won’t have to pay for the entire container but can share them with others. This method is known as LCL, and it can save a lot of money.