Translation. Region: Russian Federation –
Source: KMZ Cargo – KMZ CARGO –
An important disclaimer is at the bottom of this article.
Due to the escalation in the Middle East, three lines of the International Transport Corridor (ITC) passing through Iran have been suspended since February 28. Timber and chemical exporters and traders are urgently rerouting cargo to Africa and Latin America, reporting a 20-30% increase in costs and delivery times extending to 60 days.
Freight shipments along the North-South International Transport Corridor (ISTC) have been suspended since February 28, 2026, amid the escalation of the armed conflict in the Middle East. Market participants are urgently rerouting export flows, noting delivery issues and the closure of key sections of land borders, Vedomosti reports.
Since February 28, Russian companies in the timber industry, chemicals, and trading sectors have been unable to ship cargo along the International North-South Transport Corridor (ISTC). Two sources at lumber exporters told Vedomosti that shipments along this corridor have been completely suspended. One of the sources clarified that his company is already exploring options for redirecting exports to North Africa and Latin America.
A source at a chemical company noted significant supply bottlenecks due to the current situation in the Middle East. According to a representative of one trading company, only shipments sent before the military operation or in the first days after its launch are currently being processed.
On March 3, Pavel Fedyaev, First Deputy Chairman of the State Duma Committee on Transport, told TASS about the need to diversify cargo shipping routes to Asia. Experts are assessing potential losses for the industry. Dmitry Baranov, a leading expert at Finam Management, calculated that exporters' costs could increase by 20-30% due to the extended routes. Delivery times to India and Iran will increase from 30 to 45-60 days, reducing the profitability of grain, metal, and petrochemical exports. He estimates that no more than 70% of cargo can be rerouted to other destinations. The expert estimated the total damage to domestic logistics from the temporary shutdown of the International Transport Corridor at 5-10% of export revenues in this direction, equivalent to $40-60 million per month.
Mikhail Burmistrov, CEO of Infoline Analytics, predicts that by the end of 2026, total cargo transshipment on the North-South International Transport Corridor could decline by 25% or more. The expert clarifies that an accurate estimate is difficult due to the unpredictability of future developments in the region.
As a reminder, the 7,200-kilometer-long North-South International Transport Corridor connects Russia with markets in India, the Persian Gulf, and Southeast Asia via Iranian seaports. All three branches of the corridor pass through Iranian territory. According to Russian Railways, rail freight volumes along the corridor in 2024 totaled 12.9 million tons, a 3% increase compared to 2023. However, in 2025, this figure fell to 9.9 million tons (data from RBC, citing Russian Railways). Shipments along this route account for approximately 1% of the state monopoly's total freight volume. Vedomosti sent inquiries to the Ministry of Transport and major shippers.
As a reminder, to improve logistics on the North-South International Transport Corridor and expand Russian export opportunities, the launch of rail ferries across the Caspian Sea is necessary. This opinion was expressed by Alexander Sharov, head of RusiranExpo, during the third international forum "North-South – New Horizons." LR
Publication date: 03/11/2026
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