Hyundai Motor says vehicle exports to Europe and North Africa are facing delays as the Middle East conflict disrupts shipping corridors that these routes typically use.

Reuters reported that the situation is constraining space on major maritime routes, raising freight costs and slowing delivery times, which is adding strain for Hyundai and companies in its supply chain.

The carmaker said the effects could persist even if hostilities subside in the near term, as logistics networks would require time to resume normal operations.

Kim Dong-jo, Hyundai Motor Global Policy Office senior vice president, as reported by Reuters, said: “Even if the conflict ends, it will take a considerable amount ​of time to rebuild and restore existing supply chains.”

Dong-jo also pointed to rising logistics expenses and raw material constraints connected to the conflict, which are weighing on parts suppliers and production.

He said Hyundai is working with suppliers and the government to reduce the impact.

Hyundai Glovis, the logistics arm of Hyundai Motor Group, said it is currently unable to use certain Middle East routes, prompting temporary storage of cargo at alternative locations until conditions improve.

The report said services to North America’s west and east coasts are largely operating normally, but limitations in the Middle East and higher fuel prices are reducing efficiency.

South Korea’s Trade Minister Yeo Han-koo, cited by the news agency, said some shipments are being redirected to interim hubs including Sri Lanka, where cargo is being held as firms adjust delivery plans.

In a separate update last month, Hyundai Motor Company set out plans to increase global annual production capacity by 1.2 million units by 2030.