Japan's car exports to war-hit Middle East plunge 90% in April
Japan's car exports to the Middle East dropped 90% from a year earlier in April, on the impact of the regional war, Nikkei Asia reported. The decline reflects rising shipping and insurance costs. Manufacturers are evaluating alternative routes and delivery schedules.
Japan's car exports to the Middle East fell by close to 90% year on year in April, according to Nikkei Asia citing Ministry of Finance data. The drop is directly linked to a sharp rise in maritime shipping costs amid tensions around the Strait of Hormuz. Insurance premiums for transport to the region have also risen visibly because of war-risk assessments.
The Nikkei Asia report said that dealers in markets such as Saudi Arabia, the United Arab Emirates and Oman are waiting on new deliveries. Some Japanese manufacturers have stretched delivery calendars to reorganise logistics and manage current supply. The regional delivery performance of major manufacturers including Toyota and Nissan was said to be likely to influence year-end sales results.
Analysts said that, if the war-risk premium persists for a long time, Japan's positioning in global automotive trade could be affected. The Strait of Hormuz is at the centre of regional commerce and tension between the United States and Iran has escalated again in recent weeks. The assessments in this article rely on the source's reporting and are not a substitute for professional advice on investment decisions related to automotive companies.
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