Inflation, soaring gas prices, and covid have forced logging companies across the country to shut down operations.
The transportation sector of the timber industry is being devastated by the cost of diesel, to the point that companies are “parking” their trucks and not operating. This link in the forest products supply chain is beyond stressed and very close to its tipping point.
The American Loggers Council held Congressional and Administration meetings to discuss the PATHH program and Fuel Crisis. The ALC has proposed the following short-term actions to reduce fuel costs:
1.) Suspend state and federal diesel taxes (estimated to reduce prices 45-75 cents per gallon)
2.) Allow off-road diesel to be used on-road as has been done in other emergency situations.
3.) Allow logging trucks interstate access as is allowed in some states and which will improve fuel efficiency 10-20%.
Bobby Goodson has been logging 37 years ago and can’t figure out a way to keep the business running.
More and more loggers across America are going out of business and the entire value supply chain could be significantly disrupted as a result.
AMERICAN LOGGERS ARE THE BACKBONE OF A $300 BILLION DOLLAR TIMBER INDUSTRY.
Skyrocketing diesel prices have pushed loggers and truckers to their tipping point and threatens the entire timber supply chain.
At the beginning of 2022 American Loggers Council conducted a Logger Inflation Survey. The survey showed that the average inflationary impacts for industry specific items and services found a 25% increase. (Does not include diesel prices)
By contrast, the delivered wood prices increased for only 30% of the respondents, with delivered wood prices remaining the same for 50% of the respondents and declining for 20%.
With tight profit margins the logging industry cannot absorb these increases while wood prices remain flat.
IT IS NOT SUSTAINABLE.
“The transportation sector of the timber industry is being devastated by the cost of diesel, to the point that companies are “parking” their trucks and not operating. This link in the forest products supply chain is stressed beyond anything that I have observed in my 18 years."
— Scott Dane, American Loggers Council
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