New Zealand is my country's main timber exporter, of which 70%-80% of timber export business is sold to China. At present, the wood imported by my country from New Zealand is mainly radiata pine.
With the increasing demand from China in recent years, the number of logs exported by New Zealand has increased significantly.
In June this year, the number of logs and timber exported from New Zealand to my country reached a new high, an increase of 23% over the same period last year. While New Zealand's export business continues to increase, it is accompanied by the emergence of domestic supply problems.
Cargo ships brought the new crown virus and the port was paralyzed
New Zealand local media reported that a Singaporean container ship that had docked at the Port of Tauranga, New Zealand, had an outbreak recently, and 11 crew members on board were diagnosed.
The Port of Tauranga stated that “out of cautious considerations, all port workers who boarded the ship will conduct self-isolation and undergo nucleic acid testing.” The pause button for port work was pressed, which almost paralyzed the container terminal at the Port of Tauranga. The maritime supply chain that was operating at an overload was once again "crushed." The port was out of service, resulting in cargo ships being unable to arrive at duty within the expected period, and the timber transportation cycle was prolonged.
Logs are overstocked and cannot be shipped out
As the original timber orders were delayed, a large number of newly felled logs flooded into Gisborne Port. Faced with the sudden increase in the number of logs, the port is fully operating and frees up all storage facilities to store logs.
Affected by the weather, the port's loading capacity can only be controlled at 50%, and it is difficult to quickly transport the logs accumulated in the storage bins, and the logging farm is still continuously importing timber into the port, the storage facilities have completely burst, and the timber transportation is facing obstacles.
The labor shortage is pushing up costs
Affected by the continuous impact of the epidemic lockdown measures, New Zealand's domestic labor shortage has reached a "critical point." Although many companies in New Zealand have begun to recruit workers and the unemployment rate has dropped compared to before, the problem of labor shortages in New Zealand still exists due to the fact that New Zealand's borders are still closed and overseas workers cannot enter the country.
The demand for wood continues to increase, and labor cannot keep up with the demand, resulting in rising production costs, declining output, and greatly reducing the speed of wood supply.
Construction demand is strong, timber supply is restricted
As a result of the epidemic, the increase in people's home time has stimulated the demand for new construction and construction, and the housing construction market in New Zealand is booming. The boom in the housing construction market has led to a surge in demand for timber, which has led to a shortage of supply in the market and restricted timber supply. Coupled with the impact of various factors such as labor costs and poor timber circulation, timber prices have also continued to rise.
New Zealand's building materials company Carter Holt Harvey continues to reduce its inventory sales due to insufficient wood supply, and this decision will have a significant impact on the real estate market.
New Zealand is rich in timber resources and is a veritable timber exporter, with 80% of the timber produced for export. With the growing gap in New Zealand's timber supply chain and insufficient revenue, local timber dealers have shouted "too much". Government members have also continuously issued warnings to the government to limit the amount of export, and the New Zealand timber industry is in trouble. Or it will affect the domestic timber imports in the second half of the year.
