The Softwood Forest Products Buyer - March/April 2023

LUMBER SHIPPERS Continued from page 8
M&M LUMBER Continued from page 9
Stephen A. Zambo, Ally
Global Logistics, Weymouth,
MA
We, at AGL view 2022 as an erratic, yet successful year. The last two and a
half years have posed very difficult challenges from a logistics perspective. Our
team was able to adapt within the confines of shipping, to not only make it work
but to do so successfully. The amount of effort input on a daily basis to accomplish
what we were able to in 2022 was remarkable.
In addition, 2022 was a success, as it opened our eyes in regards to areas of the
supply chain that we previously had taken for granted, specifically the ports and
their receiving dates.
Towards the end of 2022, we saw vessel schedules and receiving dates start
to normalize, which was the exact opposite of what we saw at the beginning of
2022. I anticipate this will continue to be a challenge on certain lanes, specifically
for inland rail shippers.
Another challenge I expect to continue to deal with in 2023 is trucking capacity.
There are only so many trucks, and so many moves drivers can do in a day. If
more drivers aren’t added in the marketplace, I expect this to be a continued hot
button issue.
In 2022, we shipped over 34,000 loads, added 28 team members, moved into a
new office space in our Jacksonville location and opened up a 52,000 square foot
warehouse in Blakeslee, PA.
I do not see any rate increases coming from steamship lines as of January 1st.
We may see certain routings be increased, but as a market, we were at all-time
highs for the last year. As the market normalizes, so will freight rates. In addition,
many steamship lines have ordered new, larger vessels and, as such, they will be
adding capacity to the market. When you add capacity, you drive down your unit
cost, and, as such, rates will either drop or stay stagnant.
As a whole, shipping containers are not hard to obtain. There are certain areas
in which there are chassis shortages such as Memphis, Columbus, Louisville,
Cincinnati, Chicago and others. However, container availability is not as big of a
challenge. Whether or not you can/will accept the price a specific steamship line
sets is a different story, as the variance between the most cost-efficient carrier and
those with containers can be quite large.
Shipping volumes in Q4 vs the prior three quarters have sharply turned downward.
We at AGL track shipments day-over-day, week-over-week, month-overmonth,
year-over-year. Q4 is always a slower shipping quarter than the first three
quarters of the year. November is traditionally very slow as you have Thanksgiving,
the opening of deer hunting season and typically relatively wet logging
conditions as the ground has yet to freeze. December is always a difficult time
with all of the holidays, and then inclement weather. I expect Q1 2023 to also be
weak given the current world economy. However, I do not believe that it will be
quite as bad as what we’ve seen in Q4 2022. Some of our clients have said that
Q4 2022 was worse than when COVID first hit.
I believe the U.S. economy will head for a mini- (soft) recession before slowly
making its way back. Over the last two years, we have had cheap (sometimes
free) money pumped into the economy, and, as such, many companies and end
users were overzealous in their purchasing compared to what true demand was.
It will be interesting to see what the Fed does with rates in the coming months. I
think they are lagging reality and will hinder the economy more than is required
to bring inflation back to earth. As a whole, I believe the U.S. economy is not as
bad as is being perceived. However, I believe the world economy is in a tough
position, and it will take some time to be strong again. Being in the export space,
this does not bode well for exporters. Hopefully, I am wrong. n
The sunrise was beautiful this day in the south yard of M&M
Lumber.
Here is the store back in 1979.
school. “Then I married my friend’s sister.”
As much as the first two generations of McKellars
had grown the business during its first 28 years,
M&M Lumber has changed even more dramatically
in the 30 years since Sean joined the business.
That said, the ideals and company culture that set
the standard for good business practices back in the
1960s remain intact today. Then as now, the company
emphasizes the value of good relationships with cus-
A sense of humor – in the form of this COVID Christmas card – is part of M&M Lumber.
tomers and suppliers alike, and that sense of loyalty
has been the foundation on which the business has
continued to build success.
Sean pointed out that the past is never far from the
minds of those who work at M&M Lumber, and that
those values and that sense of dedication are always
on display at the company’s headquarters.
“We keep a wall dedicated to Whitney’s grandfather.
He persevered through thick and thin, sometimes
in a hostile environment,” he said, noting that Jim
continues to serve as president of the company. “We
are happy to represent the third generation to operate
the company.”
That spirit of perseverance has been tested during
the past couple of years as M&M and the rest of
the industry navigated the challenges of the COVID
Continued on page 48
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