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
Newsmakers 2016: DR Johnson Lumber Company
DR Johnson Lumber Co., based in the small Oregon town of Riddle, is poised at the forefront of what could be a revolutionary use of wood as a building material in the Northwest. Don R.…
USDA Sets Dates For Softwood Check-Off Program Referendum
The U.S. Department of Agriculture’s (USDA) Agricultural Marketing Service (AMS) announced today that a continuance referendum will be conducted among eligible domestic (U.S.) manufacturers and importers of softwood lumber from August 1 through Aug. 25,…
Appalachian Lumber Industry Shows Improvement After 2008 Recession
While the lumber economy is improving, it still has a long way to go to fully bounce back from the 2008 recession. For the consumer, this means cheaper prices for raw wood materials needed to…
U.S. And Canada Begin Lumber Trade Talks
Ottawa and Washington have begun talks toward renewing a pact regarding the export of Canadian lumber to U.S. markets, Canada’s trade minister, Chrystia Freeland, told lawmakers here Thursday. Ms. Freeland said Canadian negotiators were in…
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.