Hyundai Diverts Ships as Closed Strait of Hormuz Disrupts Trade
Hyundai has begun rerouting its shipments around the Cape of Good Hope to bypass disruptions in the Strait of Hormuz, a move that is adding 10–15 days to transit times between South Korea and Europe. The longer route is a significant shift, especially since Europe relies heavily on Korean-built vehicles—accounting for over 80% of combined Hyundai and Kia sales in 2025. To reduce dependency, the automaker is now evaluating sourcing more components locally in Europe, a move that could also align with stricter regional localisation norms expected in the future. For now, Hyundai is managing the impact using built-up inventory buffers, a strategy shaped by lessons from the COVID-19-era supply chain disruptions. Unlike earlier years, supply decisions are now being reviewed on a weekly basis instead of annually. Interestingly, despite potential fuel price spikes, Hyundai is not accelerating its EV push. In fact, its upcoming U.S. facility in Georgia—initially planned as a dedicated EV p...