A South Florida car business is feeling the direct impact of a growing global conflict after dozens of its vehicles were damaged in a missile strike in Dubai.
New images out of the region show destruction tied to escalating tensions involving Iran, and for one Miami Lakes-based company, the fallout is both immediate and costly.
Abe Chamoun, founder of CAS Auto, says 52 brand-new Nissan vehicles sitting on a lot in Dubai were damaged after a missile landed nearby.
“We happen to have inventory in Dubai. A missile landed nearby and damaged 52 brand new Nissans,” Chamoun said.
Those vehicles were ready to be sold but are now considered a total loss, with damages estimated at around $370,000. However, Chamoun says the strike is just one piece of a much larger problem.
His company operates globally, buying excess inventory from manufacturers and distributors and storing vehicles at ports around the world — including Panama, South Africa, Belgium, Dubai and the United States — before selling to car rental companies and fleet operators.
“We buy overstock from distributors and manufacturers globally and we keep it at different ports around the world… and then we trade it,” he explained.
Now, ongoing disruptions tied to the conflict are making that model increasingly difficult. Chamoun says shipping costs have surged, and insurance rates have skyrocketed.
“The cost of shipping is way up, the marine insurance has doubled, quadrupled. So, it does affect the final cost to our customers,” he said.
A major factor: the continued disruption in the Strait of Hormuz, a critical global shipping route. The waterway, which typically handles about 20 percent of the world’s oil and gas supply, has been largely closed for more than three weeks, leaving containers stranded and forcing companies to scramble.
For Chamoun, that means rerouting inventory and rethinking logistics in real time. “We have inventory now that we were planning to sell to South America, vehicles that were going to Dubai, now we have to route them to believe it or not, Sri Lanka,” he said.
With operations in Dubai currently on hold, Chamoun says flexibility is key. “I’ve been doing this for 42 years… it’s not going to stop us or slow us down,” he said.
President Donald Trump said peace talks with Tehran have been productive after warning of possible strikes if the Strait of Hormuz is not reopened. Iranian officials have denied active negotiations but say they are reviewing proposals from the United States.
