![](\"https:\/\/www.cell.com\/cms\/10.1016\/j.heliyon.2024.e34739\/asset\/92be5360-c6f2-4c45-b06d-6e12b7632300\/main.assets\/gr1_lrg.jpg\")
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Rising tensions in the Middle East could disrupt Swedish wood exports to markets in the Persian Gulf and Asia if the Strait of Hormuz remains closed or heavily restricted for a prolonged period. According to EFN<\/strong>, countries such as Saudi Arabia and Jordan may struggle to receive the roughly 300,000 cubic metres of wood products that Sweden exports to them each year.<\/p>\n The situation comes at a time when global shipping routes have already been reshaped by earlier disruptions in the Red Sea, forcing exporters and shipping companies to adjust logistics and delivery schedules.<\/p>\n Shipping routes already shifted away from the Red Sea<\/strong><\/p>\n Over the past two years, maritime transport between Europe and Asia has increasingly avoided the Red Sea after Houthi attacks on commercial vessels in the region. Shipping companies have instead rerouted vessels around the Cape of Good Hope in southern Africa.<\/p>\n Although the alternative route is considered safer, it has significantly lengthened delivery times.<\/p>\n \u201cTwo-thirds of the shipments disappeared from the Suez Canal and the Red Sea and they haven't come back since. So the large volumes have already been moved around,\u201d Christian Nielsen, market analyst for wood products at the Swedish forest industry association Skogsindustrierna, told EFN<\/strong>.<\/p>\n The detour has extended shipping times by roughly two to four weeks compared with the traditional route through the Suez Canal, increasing transport costs and tying up shipping capacity for longer periods.<\/p>\n Pressure likely to grow at alternative ports<\/strong><\/p>\n If the Strait of Hormuz remains restricted, cargo flows are expected to rely more heavily on a smaller number of transshipment hubs. This could increase congestion at alternative ports used to redirect shipments toward Asian markets.<\/p>\n With more vessels competing for limited capacity, waiting times for ships could grow further and some ports may introduce congestion charges to manage traffic.<\/p>\n \u201cThere is a risk that congestion charges will be introduced when too many ships are waiting to enter other transshipment ports, including those towards Asia,\u201d Nielsen said.<\/p>\n Countries directly affected around the Red Sea currently account for about two percent of Swedish wood exports<\/strong>. While relatively small in overall terms, these markets still represent an important outlet for certain producers.<\/p>\n Energy prices add another layer of uncertainty<\/strong><\/p>\n Beyond shipping disruptions, the crisis could also influence the sector through rising energy costs if tensions in the Gulf push oil prices higher.<\/p>\n Higher diesel prices would increase transportation costs across the supply chain, affecting everything from shipping to domestic freight within Europe.<\/p>\n However, Sweden\u2019s forest industry is considered somewhat less exposed to energy price volatility than many other European sectors because of its early shift toward biomass-based energy sources.<\/p>\n \u201cIncreased fuel costs affect everyone equally, so they play a smaller role from a competitive perspective,\u201d Nielsen noted in comments reported by EFN<\/strong>.<\/p>\n Still, the larger economic consequences of the crisis remain uncertain.<\/p>\n \u201cThe question is how the global economy will cope with this,\u201d he said. \u201cIt is already difficult to get growth going again, and this will hardly make things easier.\u201d<\/p>","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":49943,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204],"tags":[],"class_list":["post-98157","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news"],"acf":[],"yoast_head":"\n