SEOUL/YOKOHAMA: The war in the Middle East is disrupting Asia's used-car trade, leaving shipments stranded, delaying deliveries, and forcing exporters into costly workarounds.

For Japan-based trader Umar Ali Hyder Ali, the impact was immediate. Days after the conflict began, a shipment of more than 500 vehicles that he had sent to Sri Lanka was stuck at sea due to congestion at the destination port, caused by diverted cargo from Dubai, preventing unloading.

"The cars that we already shipped to Sri Lanka were kind of idling in the ocean, waiting to enter because there was no space," he said, adding the vehicles were eventually offloaded at Hambantota port more than 10 days late.

The disruption highlights the broader fallout from the near-closure of the Strait of Hormuz, a key shipping route, which has thrown logistics into disarray for exporters in Japan and South Korea. The industry, largely made up of small businesses, relies heavily on stable maritime routes to ship vehicles to South Asia, the Middle East, and Africa.

Port congestion has triggered uncertainty across the supply chain. Hyder Ali said some shipping companies cancelled bookings, while others suggested rerouting cargo to ports in Pakistan or China. One company demanded a US$5,000 deposit per car. Some shipments may even need to be returned to Japan.

His company, Kobe Motor, exports about 18,000 vehicles annually, mainly to Sri Lanka. Currently, around 50 luxury vehicles, including Lamborghinis, Ferraris, and Rolls-Royces, are stranded in Sri Lanka and China after ships failed to reach Dubai, where buyers in the Middle East were waiting.

Air freight remains an option for some customers, but high costs make it viable only for the wealthiest buyers.

The scale of disruption is significant. Japan and South Korea exported a combined $19 billion worth of used cars last year, with Japan accounting for just over half. South Korea sent more than a third of its 883,000 exported vehicles to the Middle East, while the United Arab Emirates was Japan's largest single market, accounting for about 15 percent of exports.

In South Korea, shipments have slowed sharply during what is typically the busiest period for used-car dealers. At Incheon port, where most vehicles are destined for the Middle East, more than 70 percent of cars are currently stuck in storage, according to shipping officials.

"Whenever war breaks out, we have no choice but to go into a wait-and-hold mode," said Jin Jae-woong, president of used-car dealership Automobile International.

Some vessels already at sea are pausing or diverting routes, while others are offloading cargo at alternative ports to avoid the Strait of Hormuz. Dealers say such decisions are largely controlled by shipping companies, leaving exporters scrambling to adjust.

The uncertainty is also pushing up costs. Rising oil prices have increased freight rates, while delays have driven up storage costs. Jin said his company is paying about 40 million won per month to store unsold vehicles.

Despite the disruption, some exporters are positioning for a rebound. Jin said he plans to pre-purchase cars at lower prices, betting demand will recover once the conflict eases.

Still, alternatives are limited. "You can't just simply redirect shipments to Africa or Latin America," said Yun Seung-hyun, president at Ventus Auto. "There's effectively no solution right now," he said.

With a large share of business tied to Middle Eastern markets, traders say prolonged disruption could have lasting impacts on the industry.