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European lumber producers cease all shipments to Asia, Middle East over surcharge
Posted on December 26, 2023
Maritime companies declared an extra charge of +1000 USD/CTR starting Jan 1st for shipments to the Middle East and Asia due to the Red Sea situation.
As a result, European lumber producers respond by pausing loadings and bookings in light of the announced surcharge.
The surcharge applies to all ships using the Suez Canal, regardless of their direction—eastbound or westbound.
Sawmills mentioned that even previously booked shipments, if cancellable, will be halted, especially if sailing after Jan 1st.
The industry faces challenges as nobody can manage the significant increase of +$20/m3.
Business activities are on hold until the week of Jan 8th when there will be a reassessment of the situation with the shippers.