Canadian Lumber Producers Angry Over Rail Bottlenecks
Canada’s lumber producers ought to be enjoying the fruits of a U.S. housing recovery. Trouble is, they can’t take full advantage of it. The forestry companies say that a shortage of rail cars is causing them to lose sales and market share, just as American demand for their products returns after a long, severe slump.
The problems the companies say they face include irate customers threatening to impose penalties for late delivery; empty ships sitting uselessly in port for lack of lumber to move; and idled shipments that have to be stored under tents.
Western Canadian producers have added their voice to the chorus of industry complaints in Ontario and Quebec over major rail shipment delays.
The robust pickup in the U.S. housing market has resulted in new orders for lumber, strand board, plywood, pulp and other products, and Canadian producers require more rail cars to get those products south. But they claim the two major Canadian service providers – Canadian National Railway Co. and Canadian Pacific Railway Ltd. – are not doing enough to help them out of a jam.
“Slowly but surely, the lumber and panel and pulp markets are coming back and it’s getting more difficult to supply as quickly and as consistently as possible, especially with just-in-time delivery becoming commonplace,” says Doug Routledge, acting president of the B.C. Council of Forest Industries.
From The Globe and Mail: theglobeandmail.com.
Latest News
Lumber Among Three Big Input Reductions
Softwood lumber is one of the three largest construction input cost reductions year-over-year from December 2021 to December 2022, according to a recent ConstructionDive market report. Citing Producer Price Index data from December 2022, the report noted that overall…
Biofuels Project Sinks
The Red Rock Biofuels project in southern Oregon appears headed for foreclosure according to notices published in the Lake County Examiner newspaper in late December after the company failed to make principal and interest payments on some $300 million in debt. The notice set a February 4 payment…
Opticom Celebrates 50th Anniversary
Opticom Technologies, a leader in industrial video monitoring solutions, is celebrating 50 years in business. The company, founded in 1973, has evolved to continue offering innovative products as video monitoring technology has advanced. “It’s unique for a video monitoring company to have 50 years of history under its belt,” comments Opticom Global…
Structurlam Temporarily Suspends Arkansas Operations
Structurlam Mass Timber Corp., a mass timber manufacturer in North America, has announced it is temporarily suspending operations and reducing staff at its Conway, Ark., plant due to a customer contract cancellation…
Find Us On Social
Newsletter
The monthly Timber Processing Industry Newsletter reaches over 4,000 mill owners and supervisors.
Subscribe/Renew
Timber Processing is delivered 10 times per year to subscribers who represent sawmill ownership, management and supervisory personnel and corporate executives. Subscriptions are FREE to qualified individuals.
Advertise
Complete the online form so we can direct you to the appropriate Sales Representative.