Russia’s Global Timber Routes Squeezed by Surging Transport Costs

50% rise in trucking rates forces Siberian mills to reprice, reroute or suspend shipments


Mon 10 Nov 25

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Russian trucking costs increased by as much as 50 per cent, a jump that is inflicting damage on the country’s timber export sector and making deliveries of lumber to “friendly countries” increasingly difficult.

That is according to the Russian-based industry publication Lesprom, which warns that exporters from Siberian sawmills have been forced to reprice contracts, curtail shipments, and, in some cases, suspend deliveries as previously viable routes have become uneconomic amid surging transport costs.

According to Russian media, the problem is a combination of higher fuel and maintenance costs, a shortage of qualified drivers, an aging vehicle fleet, and a logistics environment complicated by restricted access to international insurance and banking services, which are the chief drivers of the spike.

And the shocks are showing up in both material pricing and availability.

Russian lumber prices were already up between 11% and 14%, with Wood Central reporting, back in March, that “transport costs to China (up 16%), Uzbekistan (up 18%), and Japan (7%)” a number that has risen markedly since. Exporters now say those increases are not uniform but cumulative: elevated inland transport costs add to already tight margins, and for many mid-sized mills, turn profitable exports into break-even or loss-making operations.

Timber is one of Russia’s most important export industries. As one of the world’s largest producers of lumber, Russia has for generations transported timber in various ways in Siberia. Footage courtesy of rferlonline.

Carriers and logistics managers are now reporting that they are focusing on the shortest, most profitable legs through rapid route repricing. As road routes become uneconomical, shippers turn to rail and short-sea transhipment, although these options have limited capacity and rising rates. Ports are now experiencing longer dwell times and more partial loads, which further raises costs and slows throughput. The result is longer lead times and increased spot-market volatility, which is already affecting importers in nearby markets.

It comes after Wood Central on Friday revealed that Russia is now redirecting increasing volumes of timber to the Middle East and North Africa (MENA) as traders look to diversify from a lacklustre Chinese market. 

Russia was the EU’s fifth-largest trading partner in 2021, exporting more than $3 billion worth of timber to the bloc. However, wartime sanctions following the Ukraine invasion have crunched large parts of the industry. (Photo Credit: Stock Illustration ID: 719426440)
Russia was the EU’s fifth-largest trading partner in 2021, exporting more than $3 billion worth of timber to the bloc. However, wartime sanctions following the Ukraine invasion have crunched large parts of the industry. (Photo Credit: Stock Illustration ID: 719426440)

That is according to new data presented at the 2025 International Softwood Conference, revealing that 1.7 million cubic metres of lumber were shipped to MENA countries in 2024, with 550,000 cubic metres going to Egypt alone.

According to Sanjoy Narayan of Fastmarkets, Russian lumber production now stands at 28 million cubic meters, down from 32 million cubic meters during the pandemic, with exports falling more than 40% (from a 2019 peak) to just 18.7 million cubic meters last year. “China absorbs about 60% of Russian exports (11.2 million cubic meters in 2024), though these volumes declined by 10% year over year in the first half of 2025 as Chinese market prices remained depressed,” Narayan said. “Notably, Russia still exports sizable quantities to Japan, maintaining a presence in this market despite EU sanctions on Russian timber.”

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  • MASTER BRAND MARK POS RGB e1676449549955

    Wood Central is Australia’s first and only dedicated platform covering wood-based media across all digital platforms. Our vision is to develop an integrated platform for media, events, education, and products that connect, inform, and inspire the people and organisations who work in and promote forestry, timber, and fibre.

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