Lead: As the core blue ocean market for domestic used car exports, the Middle East has strong demand, but many car dealers have fallen into the logistics sector. Routes are turbulent, customs clearance is sudden, and hidden costs are hidden. If you are careless, the entire batch of vehicles is stranded in the port, and the high costs directly consume all profits.

The Middle East market has always been a hot spot in the eyes of used car exporters. United Arab Emirates, Saudi Arabia, Kuwait and other countries have strong demand for the circulation of used cars. Some countries do not have mandatory scrapping policies. Fuel scooters and SUVs are highly accepted, and orders continue to flow.

However, many practitioners only focus on orders and profits, ignoring the lifeline of logistics. Many colleagues have stepped into the trap: delayed shipping schedules and dumped containers, detained at the port and unable to clear customs, a large amount of miscellaneous charges at the port of unknown destination, and even the risk of cargo rights. All the hard-earned money is spent on port storage fees and demurrage fees.

Today, we will sort out the real pain points of used car export logistics in the Middle East and provide practical reference for export companies that are deploying the Middle East market.

1. Routes are unstable, and transfers and detours have become the norm.

Direct shipping space resources in the Middle East are tight, and the vast majority of goods need to be transferred in ports such as Jebel Ali and Salalah. The transit waiting time is uncontrollable, and the overall voyage fluctuates greatly. Affected by the geographical situation of the Red Sea, many shipping companies have chosen to detour the Cape of Good Hope, directly increasing the range by 7%In 14 days, delays in shipping schedules, dumping of containers, and missing loading were high-frequency phenomena in the industry. Port congestion is normalized, and terminal unloading efficiency is low. After vehicles arrive at the port, they cannot be quickly picked up. Once they catch the peak season and Ramadan, the timeliness will be further extended, directly affecting customer delivery and even creating the risk of order default.

2. The policies of the destination country are changeable, and customs clearance is the biggest "life-and-death barrier"

Import policies of countries in the Middle East are adjusted at any time, and vehicle age limits, emission standards, and certification requirements are frequently updated. Policy changes after vehicles have gone to sea are the most fatal risks. Saudi Arabia requires SABER certification, and the goods will be directly withheld and returned for shipment if missing documents are missing. Many Middle Eastern countries do not accept direct customs clearance by foreign companies and must rely on local agents to operate. If one letter or VIN code on the document does not match, the entire batch of vehicles will be stuck at the dock. Real case in the industry: Some companies try to save trouble and skip certification. Vehicles are returned after arriving in the port. The port detention fee and return freight are superimposed, and the losses far exceed the cost of the certification itself.ˇKey reminder: Certificate of origin, test report, bill of lading, invoice, all information must be completely unified, and the Middle East customs review of documents is far more stringent than imagined.

3. Hidden costs are rampant, and costs can easily be completely out of control.

Many freight forwarders only quote the domestic port of origin fees, and will not inform in advance of a large number of hidden expenses at the destination port. Terminal operation fees, vehicle inspection fees, safety premiums, document fees, and warehousing fees are numerous. Once there is a delay in customs clearance, the port detention fee and container detention fee will be accumulated every day, and a high expense can be incurred in a few days. At the same time, the Red Sea is a high-risk area. Ordinary shipping insurance does not cover the risk of war and requires additional war insurance. This part of the cost can easily be ignored.

4. The inland delivery facilities are weak, and the port does not mean that the delivery is completed.

Vehicles complete port customs clearance and only go through half of the process. Trailer resources are scarce in inland cities in the Middle East, and trailer prices are high; road controls exist in some areas, and the transportation of used cars is prohibited at night. There are many border checkpoints, and on-the-road inspections take a long time. Overseas and local used car storage resources are few. If buyers cannot pick up the car immediately, the short-term storage cost will remain high.

5. Freight rights and settlement risks, freight forwarding cannot be sloppy in choosing

Some local agents in the Middle East are at risk of delivering goods without a bill of lading. Many buyers propose "payment by copy of the bill of lading". Once the agency control fails, there will be a major loss of both money and goods. There is a mixed mix of large and small freight forwarders in the market. Priority is given to logistics service providers with local cooperative customs clearance teams at the destination port. Don't just compete with shipping quotations. Low prices often correspond to countless subsequent pitfalls.

6. Climate environment brings risk of vehicle loss

The extreme high temperatures in summer in the Middle East, containers are enclosed and exposed to the sun, making the batteries, interiors and rubber parts inside the car extremely vulnerable to damage. If the binding and reinforcement in the container loading process is not in place, the sea will be bumpy for a long time, the car body will be scratched and damaged, and the vehicle condition will not meet the standard after arriving in the port, the buyer will refuse it, and disputes will ensue.

Practical advice for exporters

1. Review policy before departure: re-confirm the latest vehicle age, certification and access rules of the destination country before shipment, and do not follow old experience;

2. Reservation time and cost buffer: Red Sea route recommended reservation 15A floating budget of 35% to deal with increased freight rates, additional insurance, and potential detention expenses;

3. Strictly control the consistency of documents: check VIN codes, invoices, certificates of origin, and export licenses word for word to eliminate data errors;

4. Pay attention to the resources of the port of destination: give priority to partners with local customs clearance capabilities in the Middle East, and do not find freight forwarders who only work as domestic freight forwarders;

5. Full insurance: Be sure to add additional war risks to avoid cargo losses caused by geopolitical conflicts.

Written at the end: When used cars are exported to the Middle East, orders are only the starting point. Logistics and customs clearance determine whether you can get profits steadily. Don't be carried away by the hot market and put risks in front of you to go forward in the long run.

Source: Digital automobile export-Huohuo

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