The politics of turmoil: Overcoming global supply chain disruption
Chilling effect
While cargo scanning and contingency plans can be an effective deterrent, there are many other, subtler ways that political unrest can disrupt the cargo delivery chain. For many of the freight forwarders Air Cargo World contacted for this story, just getting a stricken facility back into operation was less important than the long-term shockwaves from the attacks.
“The attacks in Brussels have not had a particular impact on the freight business,” in terms of operations, said Nicolette van der Jagt, general director of the European Liaison Committee of Common Market Forwarders (CLECAT). What concerned her most, she said, was “the wider climate in Europe,” such as new border controls.
At Liège Airport – which is about 100 kilometers to the east and which stepped up to take flights routed for Brussels – the effects are more pronounced. “As far as finances are concerned,” said Verhasselt of Liège Airport, “the bad guys are winning.”
He explained that increasingly stringent security measures imposed after the bombings have forced the airport to reduce capacity and restrict access. Day passes that once allowed veterinarians to attend to horses on charter flights have been eliminated and Verhasselt warned that, “Ultimately, people will move elsewhere… with increased security there are some things that are no longer possible.”
Back in Istanbul, which straddles the Europe-Asia border, the mood is also less confident. Turkey’s tense security environment reflects a political instability that threatens not just the flow of commerce but the nation’s sovereignty. With an ongoing crackdown on dissidents in Turkey and the recent escalation of military activity to the east, the terrorist attacks and coup seem to be part of an ongoing, intermingling crisis.
In the post-coup environment, convincing forwarders to route their cargo through the traditional crossroads in Turkey has become harder. “If we don’t get this right, forwarders will turn to other hubs in the region,” warned Ömer, the Istanbul operations manager who endured the coup attempt.
Bulent Aymen, chairman of Sabay Logistics, a Turkish freight forwarder that operates out of Atatürk Airport, is confident that the state is taking this challenge seriously. “The government is taking all necessary steps to protect air traffic from terrorism,” Aymen explained. And while changes in security protocols are necessarily confidential, Aymen stressed that, “There are new standards, and we are informing our customers of them and implementing them at our warehouse.”
At the Istanbul airport, local media reported that the government had installed concrete barriers, installed x-ray machines capable of scanning vehicles, and that all vehicles were being checked upon entry into the security zone. “It’s causing terrible congestion,” quipped Ömer.
The state’s response has been “heavy handed, and spontaneous,” Ömer added. He explained that since the failed coup, armed agents from the ministry of transportation have been conducting frequent and random inspections at freight facilities across the country.
And while operations quickly resumed, much like they did in Brussels, business has been slower to follow suit. “Business has not returned to normal yet,” Aymen lamented. “But business is also affected by geopolitical problems with neighboring countries,” he added pointing to Russia and Egypt as examples.
Ultimately, Aymen and others in the business take a longer-term view of the situation, having seen their country recover from turmoil in the past. Last July wasn’t Turkeys first coup, and during the 1980s political violence was a way of life. “We aren’t worried about losing trade. Turkey is located in a very strategic location, so while our business might be slow, it could just be temporary.”
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