Turkey Raises Bosporus Fees: Blow to Bulgarian Business and Consumers

From January 1st, Turkey is increasing the fees for the passage of merchant ships through the Bosphorus and Dardanelles by 10%.

Since the pandemic, the service has become 5 times more expensive.

The Bulgarian Maritime Chamber says that this is a violation of the Montreux Convention, which regulates navigation through the Black Sea straits.

Due to the increase in transport costs, all goods exported by Bulgarian businesses with ships through the Turkish straits will become uncompetitive, according to the maritime industry. Exporters of grain will be among those seriously affected.

“Somewhere in the range of a dollar and a half to two dollars per ton, which is not a small amount. This is just to pay the fees for passing through the Turkish straits,” said Capt. Alexander Kalchev, Chairman of the Bulgarian Maritime Chamber.

The increase will also negatively affect companies in the maritime industry working on the Bulgarian market, as well as coastal regions.

“And on all Bulgarian consumers who receive goods by sea,” added Capt. Dimitar Dimitrov, President of the European Confederation of Associations of Maritime Captains.

Also affected are the Bulgarian companies that repair ships.

“A medium-sized ship of 35-40 thousand tons, which sails in our region, to enter and exit pays a sum of around 45,000 dollars, depending on its size, fees for passing through the Turkish straits. Its repair is in the range of 450-500,000 dollars. This addition, which is made, increases the cost of the repair by 10% for a shipowner,” commented Capt. Alexander Kalchev, Chairman of the Bulgarian Maritime Chamber.

The Bulgarian Maritime Chamber says that our southern neighbor has not presented arguments for the increase and insists on a meeting between the countries that have signed the Montreux Convention.

“The Convention very clearly states that Turkey has the right to collect fees in an amount that covers its actual costs for operating the two straits, but does not give the Turkish side the right to profit from the operation of these straits. We need to understand whether Turkey profits with its new fees or not,” said Capt. Alexander Kalchev, Chairman of the Bulgarian Maritime Chamber.

According to the industry, the fees for passing through the straits should be discussed at a political level. And they fear that if a solution is not found, there will be job cuts.