{"id":33077,"date":"2026-03-04T22:18:26","date_gmt":"2026-03-04T12:18:26","guid":{"rendered":"https:\/\/woodcentral.com.au\/?p=33077"},"modified":"2026-03-04T22:18:28","modified_gmt":"2026-03-04T12:18:28","slug":"hormuz-sealed-why-global-timber-shipments-are-stranded-with-no-way-out","status":"publish","type":"post","link":"https:\/\/woodcentral.com.au\/hormuz-sealed-why-global-timber-shipments-are-stranded-with-no-way-out\/","title":{"rendered":"Hormuz Sealed \u2014 Why Global Timber Shipments are Stranded with No Way Out"},"content":{"rendered":"\n<p>Growing volumes of timber traded into the Middle East and North Africa \u2014 one of the most important growth corridors for global forest products \u2014 have ground to a halt as US-Israeli strikes on Iran have triggered a Gulf crisis that has brought global shipping to a standstill (again).<\/p>\n\n\n\n<p>It comes after Iran\u2019s Revolutionary Guard issued a warning on February 28 to every vessel in the Strait of Hormuz: the waterway was closing, and any ship attempting to pass would be set \u201cablaze.\u201d By the following morning, traffic was down 80%&#8230;with the strait closed to all vessels on Monday.<\/p>\n\n\n\n<p>As it stands, 170 containerships carrying 450,000 TEU, 1.4% of the global container fleet, are stranded inside the strait with no clear path out, according to Linerlytica co-founder Hua Joo Tan.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"youtube-embed\" data-video_id=\"U-I0nbysAuQ\"><iframe loading=\"lazy\" title=\"Iran says ships not allowed to pass through Strait of Hormuz | DW News\" width=\"696\" height=\"392\" src=\"https:\/\/www.youtube.com\/embed\/U-I0nbysAuQ?feature=oembed&#038;enablejsapi=1\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<\/div><figcaption class=\"wp-element-caption\"><em>Iran&#8217;s Revolutionary Guard has been sending radio transmissions to ships, warning them that &#8220;no ship is allowed to pass the Strait of Hormuz.&#8221; That&#8217;s according to the European Union&#8217;s naval mission, whose operations aim to protect international shipping from attacks.<\/em><\/figcaption><\/figure>\n\n\n\n<p>All four of the world&#8217;s largest container shipping operators have suspended operations. Maersk has formally invoked Clause 20 of its Bill of Lading \u2014 a force majeure provision \u2014 implementing an Emergency Freight Increase across all cargo to and from the UAE, Qatar, Saudi Arabia, Bahrain, Kuwait, Iraq, and Oman.<\/p>\n\n\n\n<p>The current crisis is structurally different from anything the world has faced before. When Houthi attacks forced vessels off the Suez route in 2024, the Cape of Good Hope was painful but passable. However, a Hormuz closure removes the destination, leaving no available detour.<\/p>\n\n\n\n<h6 class=\"wp-block-heading\">What is at stake in the Gulf<\/h6>\n\n\n\n<p>The MENA region has, in recent years, become one of the most important and consequential growth markets for timber exporters. Last year, Wood Central reported that Russia shipped 1.7 million cubic metres of lumber there in 2024, whilst the American Hardwood Export Council has successfully grown trade in the United Arab Emirates (up 27%), Saudi Arabia (up 8%) and Egypt (up 15%) on the back of major projects in the region.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Lloyds of London last year warned that a Strait of Hormuz conflict would cost the global economy trillions. That was a forecast. It&#39;s now a reality. For more, visit Wood Central. <a href=\"https:\/\/t.co\/GkTe7vZx5E\">pic.twitter.com\/GkTe7vZx5E<\/a><\/p>&mdash; WoodCentralAu (@WoodCentralAU1) <a href=\"https:\/\/twitter.com\/WoodCentralAU1\/status\/2029127331500179649?ref_src=twsrc%5Etfw\">March 4, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>However, that pipeline is now stalled at the port gate.<\/p>\n\n\n\n<p>\u201cThe Persian Gulf, Strait of Hormuz and adjacent waters are the most dangerous place right now for commercial shipping,\u201d according to Jakob Larsen, BIMCO\u2019s Chief Safety and Security Officer, who spoke to Fox News on Sunday. \u201cShips in the Persian Gulf are under threat from Iranian attacks \u2014 they\u2019re trying to depart to get away from the threat zone.\u201d<\/p>\n\n\n\n<p><strong>It is a pattern that timber exporters have felt before.<\/strong><\/p>\n\n\n\n<p>During last June\u2019s 12-day Israel-Iran war, Mike Cardin, of Tennessee-based Cardin Forest Products, was one of scores of traders who had rerouted Gulf-bound hardwood shipments. \u201cIf it keeps escalating, there won\u2019t be any orders coming in for the next, who knows how long,\u201d he told Fox Business at the time. Whilst his brother Jarrod was more blunt: \u201cRight now, no one knows what\u2019s going to happen. It\u2019s shut down that export market pretty much. It\u2019s a little painful \u2014 we\u2019re stuck with warehouses full.\u201d<\/p>\n\n\n\n<p>That conflict passed within two weeks&#8230;but this one could drag on much longer.<\/p>\n\n\n\n<p><strong>Finland, Russia, and the wider exposure<\/strong><\/p>\n\n\n\n<p>The current disruption reaches beyond Gulf-facing exporters. \u201cApproximately 20% of the forest industry&#8217;s exports go to Asia, and the majority of those shipments pass through the Suez Canal,\u201d said Maarit Lindstr\u00f6m, Director and Chief Economist at the Finnish Forest Industries Federation. If vessels are forced to reroute around southern Africa, journeys extend by thousands of kilometres \u2014 delays of several weeks are possible.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Russia spent years building a timber market in the Middle East. Learn more here: <a href=\"https:\/\/t.co\/Kg2bWILi2E\">https:\/\/t.co\/Kg2bWILi2E<\/a>.  The Strait of Hormuz just slammed the door shut. For more visit WoodCentral. <a href=\"https:\/\/t.co\/tdpVPlhZos\">pic.twitter.com\/tdpVPlhZos<\/a><\/p>&mdash; WoodCentralAu (@WoodCentralAU1) <a href=\"https:\/\/twitter.com\/WoodCentralAU1\/status\/2029124586592452737?ref_src=twsrc%5Etfw\">March 4, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>\u201cIf the situation continues, it will affect freight prices and competition for containers,\u201d Lindstr\u00f6m warned. Of Finland\u2019s Asian exports, roughly half is pulp, with wood products accounting for 26%, cartonboard 15%, and paper 8% \u2014 all product lines now facing extended transit times and tightening container availability. Finland exports approximately \u20ac3 million worth of forest products to Qatar alone each year.<\/p>\n\n\n\n<p>Until last week, freight markets were recovering after two years of major instability in the region. A Red Sea return in late 2026 had been one of the few tailwinds analysts were counting on \u2014 lower rates, shorter transit times, freed-up capacity. \u201cThe repercussions of the joint military operation will see the further weaponisation of trade and shatter hopes of a large-scale return of container shipping to the Red Sea in 2026,\u201d said Peter Sand, chief analyst at Xeneta.<\/p>\n\n\n\n<p>And there is a second cost that the mainstream has largely missed. QatarEnergy halted production following attacks on its facilities, sending gas prices up 50% in two days. With the Strait carrying 22% of global LNG, Asian based sawmills running on gas could face an energy cost spike on top of the freight hit.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Growing volumes of timber traded into the Middle East and North Africa \u2014 one of the most important growth corridors for global forest products \u2014 have ground to a halt as US-Israeli strikes on Iran have triggered a Gulf crisis that has brought global shipping to a standstill (again). It comes after Iran\u2019s Revolutionary Guard [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":33080,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wpscppro_dont_share_socialmedia":false,"_wpscppro_custom_social_share_image":0,"_facebook_share_type":"default","_twitter_share_type":"default","_linkedin_share_type":"default","_pinterest_share_type":"default","_linkedin_share_type_page":"default","_instagram_share_type":"default","_medium_share_type":"default","_threads_share_type":"default","_google_business_share_type":"default","_selected_social_profile":[],"_wpsp_enable_custom_social_template":false,"_wpsp_social_scheduling":{"enabled":false,"datetime":null,"platforms":[],"status":"template_only","dateOption":"today","timeOption":"now","customDays":"","customHours":"","customDate":"","customTime":"","schedulingType":"absolute"},"_wpsp_active_default_template":true},"categories":[80,51,52,33,53,2,32,46,31],"tags":[],"ppma_author":[70],"class_list":{"0":"post-33077","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-africa","8":"category-americas","9":"category-asia","10":"category-editors-picks","11":"category-europe","12":"category-featured","13":"category-global-news","14":"category-industry","15":"category-top-stories"},"authors":[{"term_id":70,"user_id":2,"is_guest":0,"slug":"jason","display_name":"Jason Ross","avatar_url":{"url":"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/01\/J-Ross-headshot.jpeg","url2x":"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/01\/J-Ross-headshot.jpeg"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":"","8":""}],"_links":{"self":[{"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/posts\/33077","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/comments?post=33077"}],"version-history":[{"count":2,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/posts\/33077\/revisions"}],"predecessor-version":[{"id":33090,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/posts\/33077\/revisions\/33090"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/media\/33080"}],"wp:attachment":[{"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/media?parent=33077"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/categories?post=33077"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/tags?post=33077"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/ppma_author?post=33077"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}