Container freight rates for softwood lumber shipments to the Gulf have jumped from around $500 to more than $4,000 per 40-foot container since the start of the Iran conflict on February 28, sharply increasing costs and unsettling established trade routes.<\/p>\n
Shipping lines introduced a series of surcharges within days of the escalation, targeting shipments to the Persian Gulf. The most significant is an emergency surcharge of about $3,000 per container. In many cases, these additional costs have been applied to cargo already at sea, leaving exporters to absorb expenses that were not included in initial contracts.<\/p>\n
The increase follows disruption to maritime traffic through the Strait of Hormuz, a key route for shipments into the Gulf. Carriers have reduced exposure to the region, adjusted routes and raised premiums to reflect higher risk. Capacity has tightened, and delivery schedules have become less predictable.<\/p>\n
For exporters, the impact has been immediate. Containerised shipments to the Middle East, an important outlet for European softwood lumber, have in many cases become difficult to justify at current freight levels. Some cargoes have been postponed, while others are being redirected.<\/p>\n
The effect is beginning to show in European markets. Availability has increased in parts of Southern Europe, particularly in Italy, where earlier expectations of tighter supply have given way to more saturated conditions. Softer construction demand has added to the pressure.<\/p>\n
At the Holzexporteurstreffen 2026 in Salzburg (timber exporters\u2019 meeting in Salzburg) on March 13, discussions centred on the speed and scale of the deterioration. Participants pointed to a market that had lost direction within a matter of weeks, with demand described as uneven across destinations and order books offering limited visibility. Assessments varied widely, from what was referred to as \u201cbasic optimism\u201d to the most pessimistic outlook expressed at such a meeting to date.<\/p>\n
Particular focus was placed on Italy, where expectations of a shortage earlier in the year did not materialise. Instead, the market has shifted towards oversupply, as weaker construction activity coincides with volumes that are no longer moving to export markets at the same pace. The situation around shipments to the Gulf was repeatedly cited as a key driver, with the sudden rise in freight costs effectively closing off part of that outlet.<\/p>\n
Exporters also pointed to the growing difficulty of pricing forward business under current conditions. With surcharges imposed after shipment and freight levels subject to rapid change, contracts have become harder to structure and risk has shifted back towards sellers. The result is a more cautious approach to new sales, shorter planning horizons and increased reliance on nearby markets.<\/p>\n
The rise in freight costs is not limited to timber. Disruptions in Gulf shipping are feeding through supply chains, as higher insurance, longer routes and operational delays push up logistics costs across a range of goods.<\/p>","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":98265,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204],"tags":[],"class_list":["post-98264","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news"],"acf":[],"yoast_head":"\n