Segezha to export lumber to India but logistics costs pose a hindrance

Posted on December 4, 2023   |  

Russian lumber producers are facing challenges in exporting to India due to expensive shipping costs.

Despite the promising Indian market and industry interest, the high shipping expenses are a significant barrier.

Currently, only a small fraction, 0.4%, of the 2.5 million m³ of shipping dry lumber produced is exported to India due to tough competition with European producers.

European competitors enjoy a shipping cost advantage at about 40 euros per m³ to India, while Russian producers face quotes between $150-$220 per m³.

The elevated shipping rates make it unprofitable for Russian producers to export lumber to India, limiting serious business opportunities until rates become more competitive.