The North-South Transport Corridor: How Forestry Logistics is Changing Against the Situation in the Middle East

The North-South Transport Corridor: How Timber Industry Logistics Is Changing Amid the Situation in the Middle East

Some deliveries along the North-South international transport corridor have been suspended since early March. These restrictions also affected forest industry companies focused on lumber exports.

The North-South corridor remains one of the key routes for Russian products to Iran, India, and the Persian Gulf countries. It is especially important for the timber industry: the western route is actively used for lumber exports, while other routes are used for pulp, paper, and related products.

The current situation has demonstrated the limitations of a rapid reorientation of logistics. Experts estimate that no more than 70% of cargo can be redirected to alternative routes. This means that some deliveries are either delayed or require reorganization of logistics chains.

At the same time, shipping costs are rising, and delivery times are increasing. According to data cited by Vedomosti, exporters' costs could increase by 20-30% due to longer routes, and delivery times could increase from 30 to 45-60 days. This directly impacts the profitability of export operations, especially in lower-margin segments.

According to Mikhail Burmistrov, General Director of Infoline Analytics, total cargo transshipment on the North-South International Transport Corridor in 2026 could decrease by 25% or more, depending on the duration of the conflict in the Middle East. In monetary terms, potential losses are estimated at 5-10% of export revenues on this route. Moreover, the reduction in cargo traffic along the corridor could be significant if the restrictions remain in place for an extended period.