Assessing the impact of the Covid-19 pandemic on the financial and economic structure performance of Turkish sea freight transport sector.

ABSTRACT

The impact of Covid-19 on the global economy's functioning and the long-term growth of supply chains was first reported in Türkiye in March 2020. The purpose of this study is to determine whether the Covid-19 pandemic has had an impact on the financial and economic structure performance of Turkish sea freight transport sector, as well as how the sector has adapted to the new reality brought on by Covid-19. In this regard, the consolidated financial statements of 997 companies for the year 2020 were studied using ratio analysis, and the results were compared to the financial outputs of the 2008 global financial crisis and the European sovereign dept crisis. As a result of the study, it was determined that the sector's response to crises in different time periods varied. In order to avoid debt default during the pandemic, the capital structure restricted short-term resources while increasing long-term resources. Despite the pandemic conditions, it has been noticed that there are no barriers to accessing money market instruments in the sector, that the working capital structure has been enhanced, and that a balanced financing plan has been established to ensure the continuity of cash flows. This is the first study that analyses the sector as a whole, reveals the financial and economic repercussions of the pandemic on the sector, and compares these effects to those of recent financial crises. In addition, authorities of the maritime transport industry in other countries will find this helpful research for conducting comparative analyses, and the findings can be generalised.