Geopolitics bring supply chains closer to Europe

Bottlenecks and rising costs are inciting companies to move production and sourcing closer to Europe. Türkiye stands to benefit from the rise in near-shoring.

Meral Güzelisik has through 2022 welcomed many new colleagues at her workplace in the Pendik port. She keeps the trade of goods between Türkiye and Europe moving as she loads and unloads the growing number of trailers carried by DFDS’ freight ferries.

As Covid-19 sent container rates soaring five to six times above normal levels, the far East was suddenly no longer the most cost efficient manufacturing location. Long delivery delays, environmental concerns, and rising political tensions created further incentives for companies to review their supply chains.

Manufacturing has been ‘near-shored’ to Türkiye in recent years as the country is an industrious nation and boasts a well-educated and large workforce. Türkiye’s geography and geopolitics have also led to a rerouting of trade flows through Türkiye that previously went through Russia to reach countries in Central Asia.

To support the nearshoring of manufacturing to Türkiye, DFDS has increased the capacity of the Mediterranean route network since 2021, and capacity is projected to increase in 2023 as well. Schedules and port operations have also been adapted to handle more volumes.

Follow Meral in a video as she prepares to load a freight ferry bound for Europe from the Pendik Port in Istanbul.