With nearly 200 vessel attacks in the Black Sea, Turkish shipowners are resorting to 'cold lay-up' as cargo piles up at ports.
The number of commercial vessels attacked in the Black Sea has approached 200. Due to the halt in operations, export cargoes have piled up in ports. Turkish shipowners are planning to implement 'cold lay-up' (long-term lay-up) for their vessels for the first time since the 2008 crisis. Industry representatives are requesting the government to designate areas where ships can be safely laid up.
The intensification of drone attacks targeting commercial vessels in the Black Sea has escalated the crisis in regional trade to a new level. Since the onset of the war, the number of commercial vessels that have been attacked has approached 200, while the increasing loss of life has heightened security concerns.
Due to shipowners being more cautious regarding operations to Russian and Ukrainian ports, cargoes have begun to accumulate in ports, warehouses, and factories. In light of disruptions in operations, coastal shipowners are preparing to implement 'cold lay-up' (long-term lay-up) for their vessels, while the Coastal Shipowners and Operators Association (KOSDER) held an extraordinary meeting with its members the previous evening to discuss the sector's roadmap.
As the crisis deepens, KOSDER called its members to an urgent meeting. A comprehensive online consultation meeting was held the previous evening with the participation of member shipowners. Legal experts, insurance specialists, and club representatives also attended the meeting.
The attacks on commercial vessels, war insurance, the safety of seafarers, compensation processes within the framework of international law, insurance practices, and developments in the freight market were discussed. Additionally, steps that could be taken to ensure that freight rates do not fall below operating costs, considering the supply of cargo during the harvest season, were evaluated. It was decided that the opinions and recommendations arising from the meeting would be communicated to the relevant public institutions.
Speaking to DÜNYA, KOSDER Honorary President Salih Zeki Çakır stated that the small-tonnage coastal fleet operating particularly in the Black Sea and the Mediterranean is under serious pressure. Çakır said, 'Cargoes are waiting, ships are waiting. Due to security risks, many shipowners do not want to operate in the region. Therefore, while cargoes accumulate in ports, ships cannot be operated, and safe areas are being sought for 'cold lay-up' (long-term lay-up).'
Inevitability of 'cold lay-up' in the protracted crisis
Çakır explained that the method of waiting for ships changes according to the duration of the crisis, stating that in short-term stagnations, 'hot lay-up' (short-term lay-up) is preferred, while in long-lasting crises, 'cold lay-up' (long-term lay-up) is adopted.
In the 'hot lay-up' (short-term lay-up) practice, a large portion of the ship's crew remains on duty, the machinery is kept operational, and the ship is ready to sail at any moment, Çakır noted, adding that this method is generally applied in cases of stagnation lasting a few weeks or a few months.
However, in the event of a prolonged crisis, ships are taken into 'cold lay-up' (long-term lay-up) to minimize costs, Çakır stated, providing the following information: 'In this practice, the main and auxiliary machinery of the ship is completely shut down. The crew is reduced to a minimum level. Fuel consumption is eliminated, and operational expenses are minimized as much as possible. This method is applied for crises that are not short-term, but could last for months or even years. However, 'cold lay-up' cannot be applied while at anchor. It must be done in sheltered ports or shipyards, with the necessary permissions obtained.'
'Shipyards are expensive; the state must produce solutions'
Çakır pointed out that there are insufficient suitable areas in Turkey for ships to be taken into 'cold lay-up' and stated that shipyards are not economically viable for this purpose. Çakır said, 'There were examples of this during the 2008 global financial crisis. Many ships remained tied up in ports and designated waiting areas for a long time during that period. The example of Pire Port was discussed for a long time. The state needs to designate certain areas as 'cold lay-up' zones to ensure that ships can be safely laid up with minimal crew. Shipyards exist for repairs. Sending ships to the shipyard for 'cold lay-up' increases costs and unnecessarily occupies the capacity of the shipyards.'
'Two to three months can be endured; after that, it will be severe'
Çakır emphasized that the General Directorate of Coastal Safety and Port Authorities have procedures for long-term waiting, and it is mandatory for ships to meet the designated technical and safety criteria for insurance coverage to continue.
He noted that the problem currently affects the coastal fleet operating in the Black Sea and the Mediterranean, particularly those between 3,000 and 12,000 DWT, warning that if the crisis prolongs, the situation will worsen: 'Today, large-tonnage ships are not affected to the same extent. However, small-tonnage vessels are experiencing serious difficulties. Everyone can endure for two to three months, but a crisis lasting six months or a year would leave very severe damage on the sector. Today, there is cargo available, but finding a ship willing to take the risk and carry that cargo is becoming increasingly difficult.'
The security crisis in the Black Sea also poses significant risks for Turkey's foreign trade. Turkey's markets in Russia and Ukraine maintain strategic importance in foreign trade. In the first half of this year, Turkey's exports to Russia amounted to approximately $2.7 billion, while exports to Ukraine were $2.1 billion. In the first five months of the year, imports from Russia totaled $17.3 billion, and imports from Ukraine reached $1.2 billion.
Cargoes have piled up in ports and factories
UTIKAD President Bilgehan Engin stated that the attacks have affected container and bulk carriers, warning that if tensions persist, congestion may also occur in Turkish ports following Constanța. He emphasized that there is no strong alternative for this route, stating that the congestion in ports and warehouses will increase logistics costs.
SEDEFED Vice President Ayşem Ulusoy noted that disruptions in maritime transport increase uncertainty in the supply chain, indicating that some of the cargo will shift to road transport, but due to capacity, border crossings, and customs procedures, road transport cannot fully replace maritime transport in the short term. Almark Logistics General Manager Onur Güvenler also mentioned that no actual increase in cargo on the road has been observed yet, but inquiries about freight rates have accelerated.
What is 'cold lay-up'?
- The main and auxiliary machinery of the ship is completely shut down.
- The crew is reduced to a minimum level.
- Fuel consumption and operational expenses are minimized.
- The ship can be laid up for months or even years without sailing.
- The practice is only carried out in sheltered ports or designated waiting areas with permission.
Urgent call from the Shipowners' Association to international maritime organizations
The Turkish Shipowners' Association (TAB) invited approximately 10 international maritime organizations, including BIMCO, ICS, INTERCARGO, and INTERTANKO, to take a joint stance following the attacks on commercial vessels in the Black Sea.
TAB Secretary General Hüseyin Çınar stated to DÜNYA that the call letters prepared by the association have also been sent to international organizations, emphasizing that the global maritime community must act collectively to protect civil commercial vessels and seafarers. In a condemnation message released by TAB, they strongly condemned the attacks targeting commercial vessels and called on international maritime organizations to demonstrate strong solidarity and take concrete steps for the safety of seafarers.
Source: Aysel Yücel / DÜNYA
Source: SeaNews Türkiye
