When the conflict between the United States, Israel and Iranthe Strait of Hormuz was closed to commercial traffic and the skies of the Persian Gulf They became a high-risk area. Freighters transporting luxury cars to Dubai, Riyadh or Doha encountered a Strait of Hormuz blocked and no alternative route plan.
Any customer in that situation has little room for maneuver other than resigning themselves to waiting for their shipment like someone waiting for an Amazon courier, but a type of client who does not resign easily: he who has enough money to open your own delivery route. While hundreds of Lamborghinis, Bentleys and Ferraris were immobilized in intermediate ports due to the maritime blockade, their future owners found the most million-dollar solution possible: paying for “first class” flights so that their supercars They will arrive by plane.
Cars blocked in the middle of the conflict. When the Strait of Hormuz was closed to commercial traffic, large cargo ships were unable to reach their destinations in Persian Gulf ports. One of the most striking cases was the one documented Reuters of a shipment with more than 500 cars that were blocked at sea. 50 of those cars They were luxury models of brands such as Rolls-Royce, Lamborghini and Ferrari and had to be provisionally unloaded at the port of Hambantota (Sri Lanka) pending resolution of their fate.
The same problem affected Porsche and Audi, whose managers in the Volkswagen group they warned that the war would directly hit their sales in the region. OK to what was published by BloombergFerrari suspended shipments to the Persian Gulf for weeks.
A wall between brands and millionaires. Faced with the blockade, each manufacturer adopted a different strategy, although they could not prevent some of the luxury cars that were already on the route from being trapped in nearby ports. Bentley chose to exhaust the inventory that dealers in the region already had to meet pre-conflict orders, avoiding shipments of new units.
Ferrari, on the other hand, opted for a combination of longer and more complex alternative routes: more than 4,000 luxury vehicles bound for Dubai had to be diverted to Lamu Island port as an alternative entry point. Meanwhile, some millionaires impatient to drive the cars for which they have been waiting for no less than two years, did not want to wait a single minute longer and paid the extra cost of shipping with air transport to receive their cars as soon as possible. A decision that turned out to be more expensive than expected.
The price of millionaire impatience. Air transport was already an import route that existed before the blockade of the Strait of Hormuz, but it tripled the cost of shipping. With the war blocking the only access route, that difference shot up to five times more. The average cost of transporting a kilogram of air cargo from Europe to the Middle East has increased by two-thirds since the start of the conflict, reaching $2.96 per kilogram of cargo. as he collected he Financial Times. Some routes recorded increases of up to 100% in rates, with an additional fuel surcharge of between 0.3 and 0.4 euros per kilo transported.
Ian Arroyo, director of strategy at Freightos, a logistics information service, pointed out that there were only two options for assuming this price increase: “It all depends on whether manufacturers are reducing their own profit margin due to their relationship with the customer, or if the customer has offered to pay for the transportation on their own.” What is clear is that the final bill for the car was going to rise considerably. Money was not going to be a problem in this case.
Ferrari does not lose a single order. In statements to Gulf NewsGiorgio Turri, Ferrari’s general director for the Middle East, assured that the brand had managed to overcome logistics problems without canceling any orders in the area. “We are not experiencing cancellations. (A Ferrari) is not a need, it is a dream. You don’t make decisions based on the mood of the day. Dreams are never a short-term decision.” The data proves him right.
Between 30 and 40% of the Italian brand’s new supercar deliveries in the region go to customers who have never owned a Ferrari before. The Middle East is not the largest market in the world in unit volume, but it is one of the most profitable for the “Il Cavallino” brand. Customization and accessories account for a fifth of Ferrari’s revenue, and the region’s wealthy customers don’t just buy the car: they turn it into a unique piece doubling the car bill with customizations .
To understand the dimension of the business that was at stake, it is enough to know a fact that Turri pointed out, “our clients in the Middle East are between five and seven years old. younger than the world average.” That for Ferrari is not a simple anecdote, it is decades of guaranteed sales if customers are satisfied, whether there is war or not.
Image | freepik
GIPHY App Key not set. Please check settings