An increase of over 60 %.
The used car market is feeling the pinch from increasing sea freight costs. Consequently, the prices of imported used cars are climbing.
The automotive market is experiencing the initial effects of rising ocean freight costs for containers from certain Asian countries. This increase has led to higher import costs for used cars. Although the sales pace of used vehicles held steady early on, it has slowed in recent months.
At the beginning of this month, it was announced that the cost of transporting goods from Asia had surged by over 60 %. For a 40-foot container, transport costs have jumped from 24 to 38 million MDG (8,000 USD). Used cars currently dominate 85 % of the automotive market. According to Instat data for the second quarter of 2022, vehicles over 20 years old are the most prevalent.
