Hyundai Motor flags export disruptions as Middle East conflict hits shipping

Hyundai Motor, the world's third-biggest automaker by sales with its affiliate Kia Corp, said on Friday (April 3) that exports to Europe and North Africa, which typically transit through the Middle East, were being disrupted by the conflict in the region, underscoring growing strains on global supply chains.

Kim Dong-jo, a senior vice president at Hyundai Motor's Global Policy Office, said rebuilding supply chains would take time and warned that even if the Iran war ended soon the impact would linger.

Hyundai Motor Group's logistics unit, Hyundai Glovis, also said it was currently unable to access some Middle East routes, forcing it to temporarily store cargo at alternative locations until conditions stabilise.

South Korea's Trade Minister Yeo Han-koo said that some shipments were being diverted to intermediate hubs such as Sri Lanka, where they are being held while companies reassess when transport can resume.

Production: Daewoung Kim, Minwoo Park/Reuters