Europe\u2019s timber trade with the Gulf is slowing fast. What began as a shipping disruption in the Strait of Hormuz is now spreading through freight networks, sawmills and export markets across the continent.<\/p>\n
According to new Eurostat data, EU timber exports to the United Arab Emirates fell 14% year-on-year in January to 29,500 cubic metres. The decline came before the full impact of the Strait of Hormuz closure was reflected in monthly trade flows.<\/p>\n
The February and March figures are expected to be worse.<\/p>\n
For European sawmills, the problem is no longer only demand. It is movement. Timber that once moved directly through Gulf shipping lanes is now being rerouted through Turkish ports before continuing by truck into markets such as the UAE and Saudi Arabia. Transit times have stretched by weeks. Freight costs have climbed again. Customs bottlenecks are becoming part of the normal trade cycle.<\/p>\n
The Middle East and North Africa had become one of the few dependable growth markets for European timber exporters over the past several years, particularly for Nordic pine. That growth channel is now unstable.<\/p>\n
Prices started moving before volumes collapsed.<\/p>\n
January export prices to the UAE rose to around USD 332 per cubic metre, up 6% from December and nearly 20% higher than a year earlier. Buyers in the Gulf were already paying more before the shipping crisis intensified. The market had started tightening well before vessels began diverting routes.<\/p>\n
The closure of Hormuz accelerated what was already becoming visible inside Europe\u2019s wood sector: transport costs matter again, perhaps more than production itself.<\/p>\n
Ole Berg<\/span><\/span> said the conflict is affecting European timber markets on two fronts. Oil prices are increasing freight and fuel costs across all trade routes, while direct exports into Gulf markets have been partially interrupted.<\/p>\n For companies dependent on Middle Eastern demand, especially producers of thicker pine assortments, replacement markets are becoming urgent.<\/p>\n \u201cIf the conflict continues, it risks delaying the broader recovery of the timber industry,\u201d Berg warned, pointing to Sweden and Austria, where sawmills were already operating under pressure from weak construction activity and high production costs.<\/p>\n The timing is difficult for European producers because costs had already been rising before the Gulf disruption.<\/p>\n In Sweden alone, the forest industry expects additional costs of at least SEK 2 billion by 2026 from changes to the EU emissions trading system and sharply higher rail freight costs. Industry estimates show rail transport prices have increased more than 600% since 2010.<\/p>\n Now another layer has been added: fuel volatility, rerouted cargo, insurance costs and slower delivery cycles.<\/p>\n The result is a market where exporters are no longer talking only about selling wood. They are talking about reaching the customer at all.<\/p>\n For Gulf buyers, the disruption creates another problem. European timber remains difficult to replace quickly. Nordic softwoods are deeply integrated into construction supply chains across parts of the Middle East and North Africa, especially in packaging, formwork and industrial applications.<\/p>\n Some importers are now searching for alternatives in Russia, Central Asia and domestic substitute materials, although volumes remain limited and logistics are often more complicated than before the crisis.<\/p>\n Inside Europe, producers are increasingly trying to spread risk geographically. Companies that relied heavily on Middle Eastern demand are redirecting more volume into North Africa, Southern Europe and domestic markets where possible. But these markets are weaker and often less profitable.<\/p>\n The larger concern is that the disruption is arriving at a fragile moment for the European timber sector.<\/p>\n Construction demand remains subdued across much of Europe. Germany\u2019s housing sector is weak. Scandinavian sawmills are still dealing with expensive logs and soft demand. Several producers had expected 2026 to mark the beginning of a gradual recovery.<\/p>","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":98655,"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-98654","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news"],"acf":[],"yoast_head":"\n