Austrian timber shipments to Qatar are facing major delays and sharply higher transport costs after disruption around the Strait of Hormuz forced cargo to take longer alternative routes.
Before the Iran conflict escalated in late February, Austrian spruce timber used on Qatari construction sites typically travelled from Europe to Dubai's Jebel Ali port before onward shipment to Hamad Port in Qatar, with transit times of around 45 days.
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Now, according to a Reuters report, containers are being diverted to ports such as Khor Fakkan on the UAE's east coast, then trucked overland to Abu Dhabi before being reloaded onto feeder vessels for Qatar. The rerouting has added between $3,600 and $5,000 per container in surcharges.
A supplier in Qatar said 17 containers of Austrian spruce, each carrying around 2,850 beams worth €15,000, were caught in transit during the disruption and may now take an additional one to two months to arrive.
The extra logistics costs are feeding through to prices. Standard timber beams previously sold for QAR23–25 each now cost QAR35–37, representing a sharp increase for builders and contractors.
The disruption is affecting more than timber. Importers across the Gulf are reporting delays and rising costs for food, medicine and industrial products, with some goods increasing in price by 5% to 10% since late February.
Countries most dependent on Gulf shipping routes, including Qatar, Bahrain and Kuwait, are considered the most exposed. Regional governments are introducing emergency trucking corridors and alternative port solutions, but logistics experts warn supply chains are likely to remain slower and more expensive for the foreseeable future.
Source: www.globalwood.org
