National Hardwood Magazine - February 2024

LUMBER SHIPPING

LUMBER SHIPPING Continued 2019 and I do not see anything in the near future that is going to change that other than some global event such as natural disasters, geopolitical issues or pandemics. We are not currently seeing any real shortages in ocean containers at the major ports but we are seeing spotty shortages at some of our inland locations because of the decrease in imports replenishing those container pools. We saw a little uptick in shipments in the fourth quarter over the third quarter since the log season got off to a decent start. All indications are we should have a good log season that will carry into late spring 2024. The U.S. Federal Reserve plays a crucial role in managing inflation and interest rates. Changes in these factors can influence borrowing costs, spending and investment. Consumer spending is a significant driver of the U.S. economy. Factors such as consumer confidence, household income and access to credit can impact spending patterns. The interconnectedness of global economy means that international events, trade relations and geopolitical tensions can have repercussions for the U.S. economy and U.S. exports. China still accounts for 50 percent of our lumber and log exports. When half of our business is reliant on China and given the current tensions between the two countries, it makes us very concerned about our future. J LAKE STATES Continued from page 8 stated that interest rates will eventually dip, opening the market up to new house buyers. He also noted that, while gas prices continued to drop, the cost of diesel fuel remained “plenty high.” “A lot of people don’t realize that just because gas is going down doesn’t mean that diesel costs are too,” he said. A Michigan source said that he is “on the fence” regarding the market in 2024. “There are just so many ancillary things that are giving us trouble,” he said. “Pulp and paper mills are slowing down. The markets are drying up.” He added that the region is “low on logs because they can’t get anything done.” “Crews are either sitting idle or not running because they don’t have enough work for them,” he said. That is because potential buyers are unable to predict future interest rates and therefore choosing not to build until a concrete order is made, according to the source. With numbers down in the fourth quarter, the Michigan lumber provider has begun to “take some measures” to stay afloat. “A little bit, not a lot right now,” he said. “We are certainly watching it close. (Industry leaders) are slowing things down without cutting anybody off or shutting anything down.” An Indiana sawmill operator said, at the time of this writing, that the market is “pretty much dead right now.” “No one is going to buy until 2024,” he noted. While he acknowledged that some wood wasn’t “moving,” he said Poplar and White Oak are the exceptions. “But we really haven’t recovered since about a yearand-a-half ago,” he added. “It is going to take some time to get things back to (pre-COVID) numbers.” The source said that lumber yards are keeping a small inventory. “Everyone thinks that they can get everything they want, when they want it,” he said. “That is going to have to change (for yards to start having larger inventory).” The Indiana lumberman also said that Medium Density Fiberboard (MDF) is taking the place of “real wood.” “We’re not even sawing as much,” he said. He said that he primarily ships lumber to Southern California for distribution. But the loads are currently light. “Timber prices haven’t gone down and labor is now a problem,” he said. “There aren’t as many loggers as there used to be.” Please turn to page 56 WORMY CHESTNUT • TROPICALS • QTR & RIFT • CYPRESS • ALDER Headquarters, Concentration Yard & Kilns in Hickory, N.C. Phone (828) 397-7481 FAX: (828) 397-3763 www.cramerlumber.com 3 million BF KD Inventory Atlanta, GA Warehouse 770-479-9663 “LIMBO” The Lumber Rule Hardwoods • White Pine • Cypress RGH • S2S • SLR1E 4/4 thru 16/4 thicknesses Export Sales 706-736-2622 HICKORY • HARD & SOFT MAPLE • POPLAR • RED & WHITE OAK • WALNUT • ASH WHITE PINE • BASSWOOD • BEECH • BIRCH • CEDAR • CHERRY 52 FEBRUARY 2024 n NATIONAL HARDWOOD MAGAZINE www.RealAmericanHardwood.com/industry www.RealAmericanHardwood.com/industry FEBRUARY 2024 n NATIONAL HARDWOOD MAGAZINE 53