A shipment of 500 used cars from Japan was delayed offshore in Sri Lankan waters after the Port of Colombo became congested with vessels diverted from the Persian Gulf amid ongoing regional conflict. The closure of more than 90% of the Strait of Hormuz has created widespread disruption across global supply chains.
Hyder Ali, owner of Kobe Motors in Japan, said the shipment sat at sea for at least ten days before finally docking at the Port of Hambantota. Most of the vehicles were standard models, primarily Toyotas and Hondas, but the shipment also included at least 50 luxury cars, including Lamborghinis, Rolls-Royces, and Ferraris.
Ali, who has exported over 18,000 used cars annually for two decades, described the conflict as one of the most severe disruptions he has faced. While air freight remains an alternative, it is prohibitively expensive for many clients, raising concerns about the long-term impact on his business.
Shipping delays are also affecting industry practices. Some carriers are now requiring deposits of US$5,000 per unit, reflecting fears that shipments intended for Sri Lanka may be diverted to other markets such as Pakistan or China.
South Korea’s used-car export market is similarly affected. Kang Tae-yang, a shipping line owner, reported that approximately 70% of used cars bound for the United Arab Emirates were stuck at the Port of Incheon. Roll-on roll-off units were unable to move due to bottlenecks at destination ports, creating a backlog at the origin.
The export slowdowns come during the traditionally busiest season for used-car dealers, which runs from March to September, driven by construction and travel demand in the Middle East. Combined export data from Japan and South Korea highlights the broader economic impact: last year, the two countries exported $19 billion in used vehicles, with Japan accounting for slightly over half.
A significant portion of exports is directly affected by Middle East demand. Over a third of South Korea’s 883,000 exported used cars last year went to the region, while Japan shipped 224,000 units to the UAE alone, representing 15% of its total used-car exports.
Industry experts warn that a prolonged conflict could further strain shipping networks, delay deliveries, and impact pricing for buyers and dealers alike across Asia and the Middle East.
