Import:Export Wood Purchasing News - February/March 2018

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TRANSPORTATION - Continued from page 13 In 2018 I see similar trends in the industry. First, I expect to see more consolidation within the shipping industry. The three Japanese carriers have announced they will all merge together to offer a stronger product. The new company comprised of what was once KLINE, NYK and MOL will now be named “ONE” which stands for Ocean Network Express. They will begin taking new bookings come this April 2018. With the current market, there are only a few steamship lines that are available for acquisition. I believe with the continued consolidation we will see new challenges arising with carriers. Being a freight forwarder, we are in the shipping business and I think it would be out of line to comment in depth on the state of the lumber industry. What I can say is that we can only hope that demand is there and the market remains stable or increases! At the time of this writing there are increases expected for February. Carriers have announced GRI’s which is typical for this time of year. I expect a few mild increases over the next few months. In saying that, it is important to remember that rates are at historic lows. In order for steamship lines to run a company that is able to efficiently service its clients they must be profitable. Similar to a sawmill, when pricing is down and you are “hanging on by a thread,” any level of increase will help. This is the same with the steamship line industry. One topic that I haven’t spoken about yet is the addition of new ships. Carriers have announced many orders for larger vessels. Many of these ships will hold two, three or even 4,000 containers more than some of the vessels they are replacing. One thinks when there is mass industry consolidation that rates would go up and the organizations remaining would be extremely profitable. As steamship lines tend to do, it seems to me they will continue to self-sabotage. By that, I mean carriers are building vessels that need more cargo which in turn should help to depress freight rates as there is a finite amount of cargo being exported. More space with the same amount of cargo is not a recipe to increase rates long term. It will be interesting to see how carriers plan for the future while they contradict their current goals of being profitable with the same amount of freight, and more space. Ally Global Logistics has been in somewhat of a bubble, but the answer in short is, Yes. We have grown exponentially over the past few years and with each year we have seen our volumes increase. For our company our pre- Chinese New Year arrivals were at an all-time high. I expect this to remain the same for post Chinese New Year arrivals. The market has treated many lumber and log shippers well this past year, and the industry sentiment is that this will be the case in 2018. All I can say is that I am hopeful that is the case! 2018 is going to be an interesting year. Politically we will see what happens as this past year has been…a year in its own right. If we are judging the economy by the stock market then I expect to see some regression, however, I would prefer that the markets’ and our economy continues to trend upwards. As for Ally Global Logistics, we have just opened a new office in Jacksonville FL to further support our growth and southern shippers. Like the stock market, I very much expect that branch to soar as we continue to develop the southern lumber market and that particular office. ■ GLOBALIZATION - Continued from page 2 remained significant issues and verifying the legality and sustainability of the bona fide industry’s products could also prove complex, said speakers. Ensuring raw material supply, given growing worldwide demand, was another challenge. The consensus was that the hardwood business has exciting opportunities, but operates in an ever-faster moving, more competitive market. Key issues highlighted were globalization and seismic geographical shifts in consumption to emerging markets, notably, although not exclusively, China, or as AHEC Executive Director Michael Snow put it, the “800-pound gorilla in the room.” In his welcome address Fedecomlegno chairman and CEO of Legnonord Spa Alessandro Calcateterra summarized the sector’s position. “Average per capita wood consumption is still just 0.5 percent, so there’s huge growth capacity,” he said. “In fact global roundwood demand is forecast to rise 60 percent by 2030. This makes it more critical to address where timber comes from, how it’s produced (FAO experts forecasts one-third will come from plantations by then) and where it should be used.” Hardwood log exports: A crucial issue for European sawmills EOS president Sampsa Auvinen highlighted industry challenges. In Europe, he said, the hardwood sector had to contend with a lack of growth despite economic recovery. In fact sawmill numbers in France, Germany and Belgium alone were down 30 percent in the last decade. ■ Page 14 Import/Export Wood Purchasing News February/March 2018
HHP- Continued from page 4 Jeremy Almstrom is HHP’s sawmill manager (left) and Bruce Dahn is the company’s sales manager. They are pictured inside HHP’s sawmill facility. The company operates a PHL optimizing edger with Comact controls. are contracted for additional drying capacity), as well as on-site export preparation and container loading. All green lumber is end-waxed to prevent end splits and checking. The end wax is supplied by U-C Coatings. Export markets have become a focus for HHP in the last five years. Distributors make up the lion share of the company’s customer base around the globe. Dahn said, “Because our customers are distributors, they have warehouses with multiple lumber brands sold alongside ours. We have worked very hard the last few years to improve the appearance of our packaging and presentation so that it meets our customers’ expectations in order for them to be successful marketing our lumber to their customers.” Dahn makes regular trips to visit customers. He noted, “Whether they’re in Rhode Island or Shanghai, we think it’s important to visit our customers at least a couple of times a year to hear their experiences and make sure our products are meeting their expectations. It’s difficult to do that sort of networking from afar. You have to put your feet on the ground next to them to understand their markets and learn how you can better serve them.” That means when new equipment and processes are necessary to meet customers’ needs, HHP considers all options to find the one that will help them continue offering the best possible value. D’Elia explained, “Our recent investment in what we call our TPS line, which stands for tally, paint and strapping, was a result of our listening to our customer’s need for packs with a consistent appearance, coupled with HHP’s need for efficient production. We used to hand strap the metal bands around each pack, which took at least two people if not more. It wasn’t consistent or efficient, so we fixed that with the installation with an in-line Vision- HHP’s 6-foot PHL Band Resaw with PHL Servo Control Line- Bar System. Tally from Industrial Vision Systems, followed by a paint booth and strapping station. Now when kilndried or green production comes off the stacking Continued on page 16 Photos continued on page 16 Forest Products Inc. Produits Forestiers Manufacturers of Grooved Kiln Sticks (From Left) Robert Goodfellow, John Goodfellow and Bruce Goodfellow with “Nikon”. Supplier of Northern Hardwoods • Distribution Yard • Dry Kilns • Surfacing • Mixed Container Loads • Climate Controlled Storage • 4 million Board Feet of Hardwood Inventory • Within 40 kilometers of the Port of Quebec Species Include: White Hard Maple • Brown Hard Maple • Yellow Birch • White Birch • Northern Ash • Butternut • Beech • Soft Maple • Red Oak • White Oak • Basswood • Walnut 544 Barr Street • Hemmingford, Québec, Canada, J0L 1H0 Phone: (450) 247-2775 • FAX: (450) 247-2114 U.S. Mailing Address: P.O. BOX 303 • Mooers, New York 12958-0303 www.jwgoodfellow.com John Goodfellow - Email: john@jwgoodfellow.com Robert Goodfellow - Email: robert@jwgoodfellow.com Bruce Goodfellow - Email: bruce@jwgoodfellow.com Daniel Larose - Email: daniel@jwgoodfellow.com Import/Export Wood Purchasing News February/March 2018 Page 15
Page 1 and 2: www.woodpurchasingnews.com Vol. 44
Page 3 and 4: Table of Contents FEATURES: 2018 IB
Page 5 and 6: Import/Export Wood Purchasing News
Page 7 and 8: Log Prices, Exports, Lumber Demand
Page 9 and 10: Rainey Millworks: Imports Contribut
Page 11 and 12: WASHINGTON SCENE Proposed Bill Woul
Page 13: BV-COC-016615 TRANSPORTATION - Cont
Page 17 and 18: SOUTHWEST CLUB - Continued from pag
Page 19 and 20: Import/Export Timber Products’ St
Page 21 and 22: Who's Who - Stoufflet Continued fro
Page 23 and 24: Ontario Continued from page 22 perc
Page 25 and 26: Northeast Continued from page 24 be
Page 27 and 28: West Coast - Continued from page 26
Page 29 and 30: Business Trends Abroad Continued fr
Page 31 and 32: NEWSWIRES - Continued from page 30
Page 33 and 34: NEWSWIRES - Continued from page 31
Page 35 and 36: A guide to U.S./CANADIAN SOFTWOOD F

Import:Export Wood Purchasing News - February/March 2018

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