Södra is initiating a significant transformation of its entire logistics framework with the introduction of a new pricing model for roundwood transport. This sweeping change, which will affect every carrier currently under contract with Södra, is driven by the necessity to create a system that is not only fairer and more sustainable but also optimally adapted to the contemporary timber market and the demands of modern, efficient transportation. The initiative, officially beginning in the autumn of 2025, marks a decisive move to align compensation with actual work performed, future-proof the logistics chain, and embed deeper sustainability commitments across its entire wood supply network.
The decision to completely revise the pricing structure stems from fundamental shifts in the operational environment. According to Jonathan Klasson, Logistics Manager at Södra, changes in global wood flows and increasingly tight inventory levels have made the current logistics model outdated. A major overhaul is required to ensure long-term stability and competitive advantage. “An important goal is to make the compensation structure more equitable, so that payments accurately reflect the work performed by our transport partners,” explains Klasson. “We are committed to revising the model for price adjustments over time to ensure it is industry-appropriate and provides a stable, long-term basis for cooperation.”
The reevaluation extends to the fine print of the agreements, with Södra also scrutinising how additions and deductions are applied. The aim is to simplify and rationalize these components, ensuring all aspects of the contract are directly proportional to the true transport effort involved.
Towards a fairer, future-ready compensation system
The shift is a strategic response to current market pressures, where roundwood prices have experienced significant volatility. By creating a more transparent and responsive pricing model, Södra aims to mitigate the financial uncertainty faced by its haulage partners and, in turn, secure a reliable and high-quality transport capacity for its own industrial operations.
The move to a more performance-based model is expected to provide stronger incentives for carriers to operate with maximum efficiency. This includes optimising routes, maximising vehicle payloads, and minimising empty runs—all critical steps for both economic viability and reducing the ecological footprint of timber movement.
At the core of Södra’s new initiative is a firm commitment to sustainability and a forward-looking approach to logistics technology. The company is actively promoting measures to enhance the efficiency and safety of its transport network, including optimising operational run-times and setting more rigorous standards for safety, environmental performance, and the use of modern vehicle technology.
“We want to work closely with our transporters to be fully prepared for the demands of the future,” Klasson notes. “We expect that those who partner with us are equally committed to developing together in key areas like sustainability, the shift to fossil-free fuels, logistics excellence, and unwavering delivery reliability.”
This dedication aligns with broader industry trends in Sweden and the Nordics, where the forestry sector is under increasing pressure to achieve carbon-neutral logistics. Södra has previously made investments in electric, heavy-duty trucks and other sustainable transport solutions, indicating that carriers who demonstrate a commitment to adopting cleaner technology will likely be favored under the new procurement framework.
The implementation of the new pricing model is inextricably linked to a full-scale contract renegotiation process. Starting in the autumn of 2025, Södra will begin the significant undertaking of either terminating or renegotiating all existing roundwood transport contracts. The goal is to have all new agreements finalised by the summer of 2026. This step, while a standard part of such a large-scale change, is necessary to transition all partners onto the modern, performance-driven system. Södra has emphasised that all current carriers are being contacted directly and have been invited to participate in the new procurement process.
“Because we are making such important structural changes to the agreements, we have to proceed with termination or renegotiation of existing contracts. This is standard procedure in processes like this, although it may naturally raise questions for some stakeholders,” Klasson concludes. “We are maintaining constant, open communication with all our carriers, ensuring they have the opportunity to be part of this new procurement and development journey.”
This comprehensive logistics overhaul signals a major investment in the long-term health and competitiveness of Södra’s supply chain. By modernising its pricing and contract structure, the organisation aims to build a world-class, fossil-free, and high-reliability transport system that will sustain the vast operations of its member-owners for generations to come. The success of this transition will be a critical bellwether for the entire Swedish wood industry’s shift towards smart, sustainable logistics.
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