Turkish merchant marine fleet shrinks after period of growth

The Turkish merchant marine fleet has shrunk by 700,000 DWT (deadweight tonnage) over the past six months, dropping from 2,107 to 2,092 vessels and stalling the country’s goal of entering the global top 10 fleet rankings, the Ekonomim.com website reported on Thursday.

Despite this setback, Turkey maintains its position as the 11th largest merchant marine fleet globally, representing 2.2 percent of the world’s total shipping capacity.

The fleet had experienced significant expansion during the pandemic, when record freight rates prompted shipowners to increase investments.

From January 2021 to June 2024, the Turkish-owned fleet grew from approximately 28 million DWT to 52.7 million DWT, advancing from 15th to 11th place in global rankings.

Early in 2024 Minister of Transport and Infrastructure Abdulkadir Uraloğlu said: “Thanks to our investments, the Turkish merchant marine fleet has reached 52.7 million DWT and risen to 11th place in the world. The Turkish-owned maritime trade fleet advanced one more step in 2024. We are just one step away from our goal of being in the top 10 in the world.”

However, growth stalled in the second half of 2024, and by January 1, 2025, the fleet had decreased to 52 million DWT.

The maritime sector’s challenges extend beyond fleet size. In February cargo volumes at Turkish ports fell by 7.9 percent year-on-year to 40.3 million tons.

Export shipments decreased by 13.4 percent to 10.4 million tons, while transit cargo dropped by nearly 16 percent.

Container handling also declined by 12.3 percent to 1.2 million TEU (twenty-foot equivalent unit — the standard measurement unit for shipping containers).

Another concerning trend is the increasing proportion of Turkish-owned vessels sailing under foreign flags, which reached 89.3 percent as of January 1, 2025, compared to 83.4 percent three years ago.

The preference for foreign registration is largely driven by tax advantages and less restrictive labor regulations compared to Turkish registry requirements.

Industry experts attribute the decline to rising operational costs and bureaucratic obstacles, which are undermining Turkey’s global competitiveness.

Turkish shipowners now face potential additional pressures from proposed US tariffs on Chinese-built vessels. With more than half of Turkey’s shipping fleet consisting of vessels constructed in China, these measures could significantly impact the already struggling sector.

The US Trade Representative’s office has proposed fees on Chinese shipping operators and China-built vessels.

The proposed tariffs would require operators with fleets comprising more than 50 percent Chinese vessels to pay up to $1 million per US port entry, with scaled fees based on the percentage of Chinese-built ships in their fleet.

If approved, these tariffs could create strategic dilemmas for Turkish shipowners already facing fleet reduction.

Some may need to redirect operations away from US ports, while others with non-Chinese vessels might find opportunities in the changing competitive landscape.