Millions in JDM Exports and Exotic Supercars Are Currently Trapped at Sea
Currently, hundreds of exciting and collectible used cars, including exotic supercars and JDM legends, are currently trapped aboard massive container ships idling in the ocean.
Due to the war in the Middle East, a number of very important sea routes, such as the Strait of Hormuz, are blocked. This means that huge cargo ships loaded with vehicles exported by Japan and South Korea are currently occupying their berths, becoming floating parking lots full of cash.
For the $19 billion foreign used car industry, that means countless vehicles are literally stranded at sea.
When commercial ships like these, originally chartered for Dubai, suddenly had to change their itineraries to avoid conflict zones, ports that had ramped up quickly became full. Today, countless ships wait in traffic jams on the sea waiting for berths to become available.
Umar Ali Hyder Ali is an exporter based in Yokohama and he saw first-hand the 500 vehicles that were unable to land at a Sri Lankan port. Unfortunately for those waiting for these wagons, the anchors were dropped in the middle of the sea.
He said Reuters the following:
“The cars we already shipped to Sri Lanka were idling in the ocean, waiting to get in because there was no room”
The cargo he handled eventually arrived, but he is one of the few, with some ships delayed more than a week and a half.
It’s not just Peugeots and Volvos hidden in these shipping containers. Behind the sunburnt metal are fifty very expensive cars, ranging from Ferraris and Lamborghinis to Rolls-Royces. Hyder Ali had 50 of these cars dumped on docks in China and Sri Lanka instead of their real destination, the United Arab Emirates.
Ships from South Korea also face similar problems. KDM cars also wait for their houses to be visible.
According to Yun Seung-hyun, president of Ventus Auto, a number of their containers are stuck on the west coast of India, awaiting their time to dock at Jebel Ali.
You may be wondering why these cars can’t be taken elsewhere and sold in another market. Unfortunately for the companies behind it all, it’s not that simple. Buyers of these vehicles are generally stuck. And even if they weren’t, you can’t just land cars in a random country and expect there to be a market.
“You can’t just redirect shipments to Africa or Latin America. » Ali told Reuters.
With rising oil prices pushing freight rates even higher and huge ships stuck awaiting customs clearance, things aren’t looking great for an already struggling auto industry.
