UTİKAD Holds Online Meeting on COVID-19 and Logistics

More than 31 industry representatives attended the online meeting on “Covid-2020 and Logistics” held by UTİKAD, the International Transport and Logistics Service Providers Association, on Tuesday, March 11.00, 19, at 100.

The meeting, which was moderated by UTİKAD General Manager Cavit Uğur, started with the presentation of UTİKAD Chairman Emre Eldener. At the meeting, where UTİKAD Board Members and UTİKAD Executive Board members were also present, the effects of the coronavirus epidemic on the national and international logistics industry and the forecasts for the upcoming period were shared with the members.

COVID-19 AND TRANSPORT GENERAL EVALUATIONS

With the impact of the coronavirus epidemic, China's exports, which has the second largest economy in the world, decreased by 2020% in the first two months of 17.2. The trade wars between the USA and China were a factor that negatively affected the global demand, trade and investment environment for more than 2 years. Even though the parties reached an agreement in January of 2020, the amount of services and goods that China committed to buy from the USA was realized. it is seen as a very low probability due to the coronavirus outbreak.

UTİKAD Chairman Emre Eldener summarized the effects of the measures taken by countries to control the coronavirus epidemic in the transportation sector with a few articles;

• Due to the cancellation of passenger aircraft flights, the demand for cargo aircraft has increased a lot.
• Multimodal transportation systems cannot be operated efficiently due to disruptions in train services. Containers are waiting in ports.
• Controls and limitations at highway border gates cause delays.
• Due to stopover cancellations, there are disruptions in seaway container transportation.

Following the presentation of UTİKAD President Emre Eldener, the questions of the sector representatives were answered one by one. Turgut Erkeskin, Vice Chairman of UTİKAD and FIATA Senior Vice President, Ayşem Ulusoy, UTIKAD Board Member and Head of Highway Working Group,

UTİKAD Chairman of the Board Kosta Sandalcı and UTİKAD Member of the Board of Directors Mete Tırman also participated in the online meeting with questions and solution suggestions. The featured titles in UTIKAD Webinar were as follows:

TRIP CANCELLATION OF PASSENGER AIRCRAFTES INCREASED REQUEST FOR CARGO AIRCRAFT

A very important part of airline cargo (70-80%) is transported under passenger aircraft. Due to the cancellation of passenger flights, the fact that a significant volume for airline cargo transportation disappeared in the body of passenger aircraft has increased the demand for cargo aircraft. At this point, airlines that load 80 percent of the cost on passenger aircraft and 20 percent on cargo for the passenger; suddenly he had to load the cost of the entire plane to cargo. Airlines started to organize their passenger planes quickly and use them for cargo transportation due to the increasing need for cargo according to decreasing passenger demand. Transactions in cargo flights and temporary storage areas and warehouses are carried out under harsh conditions, all airline companies ensure that flights can be made without accommodation, in order to carry out cargo flights, and flight crews stay in quarantine hotels. According to the latest information shared, Sabiha Gökçen Airport has been closed to flights for one month from April 1.

RAILWAY TRANSPORTATION IS THE MOST DANGEROUS SPECIES IN TERMS OF CORONAVIRUS

Since the physical contact is less in rail transport compared to other types of transport, we can say that the measures taken by the countries have a relatively low negative impact on rail transport. Especially in European directional exits, the rail is in a better position compared to the highway. We see that there has been a serious demand for railway transportation recently. In response to this increasing demand, it may be possible to increase the frequencies and to provide railroad transportation more efficiently with the supply of wagons. Regarding the issue, TCDD also announced that it will increase its capacity in the Baku-Tbilisi-Kars line.

IRON AND BUMPER ZONE IS NOT AVAILABLE YET

For now, in Iranian transports, freight trains that have undergone sterilization at the Kapıköy border gate are shipped after waiting 4 hours outside the station. In order to avoid any physical contact, the freight wagons are transported to the Iranian border area at the back or to the Turkish border area at the opposite side. Meanwhile, the locomotive and personnel do not cross the border.

RECOMMENDATIONS FOR LAND BORDER DOORS

In particular, the most important highway limit our connection with the Kapitan Andreevo border crossing in Turkey and Bulgaria take the measures due to long tailbacks oluşturuyor.türk and foreign drivers to 14-day quarantine and halt due to freight transport to a standstill geldi.çekic of visa procedures with European countries, if d or the Two-Stage Plan, which includes the driver exchange, is currently not applicable.

Expectations and Suggestions;

• Agility as a result of rapid diagnostic test instead of applying the 14-day quarantine of foreigners coming to Turkey border Turkish driver and the drivers should continue to negatively time.
• European and vehicle departures should be provided by reporting to the Bulgarian authorities of foreign and Turkish drivers, who are negative as a result of the rapid diagnosis test for export transportation.

• This measure, which will be taken primarily in Kapıkule, should also be applied at other border gates.
• Urgent action must be taken before the EU to automatically extend the Schengen visas of Turkish drivers until a specified date.
• Urgent action must be taken before the EU to suspend the quota and transit certificate system applied by EU countries to Turkish transport vehicles.
• Loads should be able to cross borders in under 15 minutes, transport corridors should be kept open for freight transport, national restrictions on transport should be lifted and administrative procedures applied to everyone working in the transport sector should be reduced.
• UTIKAD's proposals regarding the land border gates were sent to the Vice President of the Republic of Turkey, Mr. Fuat Oktay, on 24 March 2020.

INCREASE OF 40 PERCENT FREIGHT IN SEA TRANSPORT

Shipowners reduced their flights to or from China due to the epidemic, which negatively affected container traffic all over the world. Ships that are not accepted at the ports cause delays in cargo and increase transportation costs. In the first two months of 2020, a volume loss of 1.9 million TEU was lost due to empty sailing. Due to the decrease in imports from the Far East, there are no empty containers to load export goods. Due to the accumulation of export loads, space problem started on the ships. of ships banned from the country before the 14-day quarantine period it can not be considered to ports in Turkey. Assuming that the ship's voyage time is 8 days in this case, it is not accepted to the port without completing the remaining days. This, of course, causes a serious cost increase and delay in export loads. In addition to this, high demurrage and warehouse fees continue to be in question due to delays in railways in the transportations made with the combination of rail and seaway.

EVERYONE IS WANTED: THE INSURANCE

It may happen that customers are unable to make a payment or delay their payments. At this point, how and in what way can we activate the receivable insurance? How does the process work?

UTİKAD Risk Management Manager Pınar Kapkın informed the members about credit insurance.

The utensil; “Receivable insurances can be provided by some insurance companies as well as government-sponsored. Although there are differences in scope, they provide similar coverage. It guarantees the non-payment risk of debt arising from futures sales that are not tied to any collateral made by the firm. It provides collateral if a buyer whose credit limit is allocated defaults with legal situations such as bankruptcy, concordat, liquidation.

While only micro and small-scale enterprises could benefit from State Supported Receivable Insurance before, this number was increased to 1 TL with a new decision issued on April 2020, 125.000.000. Therefore, medium-sized companies will be able to take advantage of this. While calculating the premium, the turnover obtained from the forward sales of the enterprise in the last fiscal year is based on. There are approximately 10 insurance companies registered in the system on this subject. But at the moment, Halk Sigorta gives this guarantee. They request an application form to register to the system, and the evaluation process of this application form can take between 10-15 days. After the elapsed time, they offer you the result with a proposal and you have a guarantee up to the limit given.

In the State Supported Receivable Insurance, the sales term must be specified in the sales agreement made between the insured and the buyer. If there is no sales agreement, the terms of sale agreed between the insured and the buyer are required on the invoice. It can be applied to sales made in Turkish Lira, excluding foreign currency indexed invoices or contracts, and the maximum invoice term can be 360 ​​days. When we look at collateral basis, the payment of pandemic damage is currently within the limit. It should not be forgotten that the insurance company has the right to decrease or cancel this limit. ”