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Earthquake puts strain on Turkey supply chain

[ February 27, 2023   //   ]

Following the recent earthquake, shipping companies such as Maersk and COSCO Shipping Lines have changed the destination of bookings to Iskenderun port in Turkey to nearby hubs including Mersin, which is expected to lead to congestion in those hubs says business intelligent firm, Smart Cube.

Director of procurement and supply chain intelligence Ritesh Kumar said that exports of certain chemicals and plastics are set to decline for an extended period due to a rise in domestic demand in Turkey. The earthquake-affected region produces chemicals and plastics, such as polyester fibres and polymers, soda ash, and fertilisers. These chemicals are used across industries, such as textiles, plastic, glass, primary packaging, and food processing machineries. Several chemicals companies in the affected region are yet to report any direct impact from the earthquake but are anticipating that production and demand will be affected.

“Elsewhere, the steel industry in Turkey is also expected to remain restrained in the medium term. Although steel mills in Iskenderun – which account for more than 25% of Turkey’s total steel production, with Turkey itself making up 2.1% of the global crude steel production market – escaped serious damage, they are facing logistic issues. This is due to damage to ports and highways, as well as the fact that mills are putting resources into searching for employees missing as a result of the earthquake.

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