LUMBER PRICES AND FOREST FIRES

Significant supply chain challenges and transportation backlogs are being created as a result of the wildfires out west. Producers are facing a variety of challenges and are trying to manage the situation as best as they can. Some of the current issues include:

• An inability to harvest logs due to dangerous conditions. Logging will continue to become more difficult if the current conditions continue.

• Crippling of the transportation network in some cases as rail is not able to operate, creating backups at the Port of Vancouver.

Producers are managing the situation as best as they can, however a change in weather, wind, etc. can have impacts.

Other issues that continue to impact pricing and supply are container costs and availability. Costs continue to rise and have increased by more than 400 per cent. Regular container pricing has jumped from $2,500 to $10,000 and with the demand for product, premium service is basically the only option and is $18,000 to $31,000 USD per container, depending on the container and region the shipment is coming from. Labour shortages continue to be experienced, which create delays and strain on an already stressed supply chain.