A 50% increase in freight transport costs is forcing Siberian sawmills to review prices, change transport routes or suspend deliveries.

Timber production is a very important export industry in Russia. This country, one of the world's largest timber producers, has long transported timber out of Siberia in a variety of ways. Hundreds of thousands of cubic metres of wood are hauled along the Kolyma Highway, unofficially known as the Road of Bones because of its grim history. More than 3.5 million hectares of forest have already burned in the territory of the Sakha Republic, including commercial forests. These are just two examples that illustrate the heavy pressure on loggers and timber hauliers. Freight transport costs in Russia have risen by 50%, which is causing losses for the country's timber export industry and making it harder to supply timber to the so-called friendly countries.

According to the Russian forestry industry publication Lesprom, which warns that exporters of Siberian sawmill products have been forced to review contract prices, cut deliveries and in some cases even stop them altogether, because previously profitable routes have become uneconomical as transport costs have risen. Russian media report that the problem is linked to rising fuel and maintenance costs, a shortage of qualified drivers, an ageing vehicle fleet and a logistics environment complicated by limited access to international insurance and banking services, all of which are the main reasons for the increase in costs.

The changes are reflected both in material prices and in availability

Russian timber prices had already risen by 11-14%, and as early as March 2025 it was reported that “transport costs to China (up by 16%), Uzbekistan (up by 18%) and Japan (up by 7%)” had climbed considerably. Exporters now stress that the rise is not uniform but cumulative – higher domestic transport costs squeeze already tight profit margins, turning profitable exports into break-even or loss-making business for many mid-sized wood-processing companies.

Hauliers and logistics specialists report that, as they rapidly review freight prices, they are concentrating on the shortest and most profitable routes. As road transport becomes uneconomical, freight carriers are switching to rail and to short sea shipping and transhipment routes, although the capacity of these options is limited and prices there are rising quickly too. Ports already require longer storage times for timber and are handling more part-loads, which pushes costs up further and slows throughput. As a result, delivery times are getting longer and market instability is increasing, which affects importers in nearby markets.