Iran crisis brings chaos to Nordic sawmill markets

The escalation of conflict around Iran is feeding directly into the cost base of Nordic sawmills, with higher freight rates, longer shipping routes and rising uncertainty compounding an already weak market environment. A survey by the Finnish Sawmilling Industry Association illustrates how quickly conditions have shifted. 97% percent of respondents reported higher logistics costs, driven primarily by rising fuel prices and increased risk premiums for maritime transport. Logistics is the second-largest cost item after raw materials, meaning the impact on profitability is immediate and difficult to offset. The increase is not marginal. Containerised lumber freight to some ...