The Lumber Market Today
Railroad Strikes in Canada slow lumber deliveries to the US
We find it interesting that even with the Canadian railways strike,
the current lumber market is stubbornly refusing to move beyond its stable state.
Here’s the skinny on the impact the railways have on the lumber market.
- Canadian Rail Strikes: Ongoing strikes involve both Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC).
- Impact on Lumber Industry: Disruptions are slowing down the transportation of lumber and other forest products across North America.
- Supply Chain Disruptions: The strikes are causing delays at major shipping ports, particularly on the West Coast, impacting lumber exports between Canada and the U.S.
- Operational Adjustments: Companies like Mercer International and Conifex Timber are altering operations due to rail transport uncertainties.
- Economic Ramifications: The strike could cost the Canadian economy hundreds of millions of dollars per day, tightening lumber supply and potentially driving up prices
- Sources: Wood Central, Lesprom Network Trains
- Another great read from CNN: Canadian freight railroads shut down, dealing a potential blow to North America’s economy
Critical factors to monitor is the length of these negotiations. The longer the railways are off-line, the harder it will be to get supply. Consider this in your purchasing decisions, especially for OSB, SPF Dimension, MSR and some KDDF.
As always, call us for current market conditions.
Keep reading for more on the factors affecting the Lumber Market Today.
Reflections from the Canadian Rail Strikes in our Industry
As we approach Labor Day, a time to celebrate the dedication and resilience of workers across industries, it’s hard not to draw parallels with recent events that have reminded us of the power and impact of collective action. Just as the Canadian rail strikes sent ripples through the lumber supply chain, highlighting the critical role of labor in our industry, Labor Day serves as a reminder of the strength and unity that drives our workforce forward. These events underscore the importance of every individual’s contribution in keeping our operations running smoothly and efficiently.
Hurricane Hilary Slows Plywood Production and Increases Plywood Demand
- Supply Chain Disruptions: Hurricanes damage forests, sawmills, and transportation infrastructure, reducing the supply of lumber.
- Increased Demand: Demand for lumber spikes as affected areas begin reconstruction efforts, leading to price increases.
- Price Volatility: The combination of reduced supply and increased demand often causes significant price fluctuations in the lumber market.
Consider these factors when planning your upcoming Plywood orders!
