Report: New Zealand is supplying the world’s softwood logs
A new report from Wood Resource Quarterly, a 52-page market report on the timber and forest industry, has found that New Zealand is responsible for over 20% of the world’s softwood log trade.
By comparison, Russia and the U.S. rank second and third, respectively, as global log suppliers, contributing about 15% of the world’s log trade each.
According to the report, New Zealand exported 57% of its own timber harvest in 2013. Additionally, the value of the trade has tripled in the last five years. However, domestic log consumption has remained relatively unchanged over the past decade.
China is among its biggest customers (and largely takes credit for the sudden boom in exports), though South Korea, India and Japan are major players as well. In 2013, 72% of New Zealand’s total export volume went to China.
Extra time: Port strike still looms
Both sides of a West Coast labor dispute are entering extra time as the contract between the Pacific Maritime Association and the International Long Shore and Warehouse Union officially expired June 30.
As expected, both sides are negotiating in an effort to avoid the economic damage from a costly strike on the docks that, according to a recent study, could cost as much as $2.5 billion per day.
That arresting estimate comes from a new report conducted by National Retail Federation and the National Association of Manufacturers. “The National Impact of a West Coast Port Stoppage,” in its summary states: “If no new agreement between the ILWU and the PMA is reached and disruptions across 30 West Coast ports take place, the economic consequences would be significant and widespread.”
The report does the math and concludes:
• A 5-day strike scenario would reduce GDP by $9.4 billion;
• A 10-day closure would cost $21.2 billion; and
• A 20-day disruption would hurt to the tune of $49.9 billion.