The Iran crisis is increasingly weighing on the timber sector, with disruptions to Gulf supply routes feeding directly into higher costs, weaker flows and shifting price dynamics across both exporting and destination markets.<\/p>\n
The closure and instability around the Strait of Hormuz have forced a near-complete restructuring of logistics into the Gulf. Deliveries that previously moved through established hubs are now rerouted, often involving multiple handling stages, transhipment points and overland transport.<\/p>\n
Initial \u201cbackdoor\u201d supply routes are beginning to emerge. One of the key bottlenecks is the Saudi port of Jeddah, where limited volumes of sawn timber are currently entering the region. From there, material is transported by truck into Saudi Arabia or onward to construction sites in Qatar, while other shipments remain temporarily stored until buyers are found locally or in neighbouring countries.<\/p>\n
These routes are significantly less efficient and cannot replace former volumes. At the same time, buyers in the Gulf are showing willingness to absorb higher costs in order to secure supply, reflecting continued demand despite logistical constraints.<\/p>\n
Price effects are already visible on the ground. In the Gulf, standard construction timber has increased sharply due to supply disruptions and rising transport costs. In some cases, prices for basic softwood elements have risen by around 40\u201350%, moving from roughly $6\u20137 per piece to $9\u201310, driven primarily by freight surcharges and longer delivery chains.<\/p>\n
Freight costs have also escalated significantly. Rerouted shipments are incurring additional costs of up to $5,000 per container, while delivery times are extended by several weeks or even months depending on the route.<\/p>\n
At the same time, the impact is feeding back into Europe. The expected post-Easter recovery in demand has failed to materialise, with the price momentum seen earlier in the year not continuing into April. Rising costs for oil-based products\u2014such as transport fuels, packaging films and adhesives\u2014are further increasing overall production and logistics expenses.<\/p>\n
In parallel, volumes originally destined for the Gulf are increasingly being redirected or are remaining within Europe. This gradual \u201cleakage\u201d of Gulf volumes into other markets is adding pressure to regional balances and limiting price increases.<\/p>\n
The Gulf itself remains structurally undersupplied. The region typically absorbs around 4 million m\u00b3 of softwood lumber annually, and the disruption has effectively removed this demand outlet from global trade flows within a very short period.<\/p>\n
Despite the emergence of alternative routes, supply into the Gulf is currently fragmented, slower and significantly more expensive. Prices in destination markets are rising due to scarcity and logistics, while upstream markets in Europe are seeing the opposite effect from displaced volumes and weaker export pull.<\/p>","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":98550,"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-98548","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news"],"acf":[],"yoast_head":"\n