Supply Region Updates
Many factories are struggling to find enough workers to fill their needs after the Chinese New Year for various reasons. This has put pressure on them to fill orders in a timely manner and many are running behind. How long this will last is unknown at this time.
When pressure is applied to the mills for shipment they tend to think it is a reason to raise prices so pricing may be pushed up some over the coming summer months.
Logs seem to be at the forefront once again in this region; we have heard that log shortages are going to start affecting the mills in this region so volumes and pricing will most certainly be affected in the near future.
Global demand on this plywood will add pressure to the pricing for material from this region and we would except to see prices rise 3% to 5% in the next couple of months.
Issues We Face
To sum up the current inland trucking situation in the U.S. in one word I would say “nightmare” and it is not getting any better.
Trying to find a flatbed truck to deliver anywhere is just impossible. In the Northeast we have had to pay as much as $7.50 per mile to get a truck shipped, yes $7.50 per mile. To put this in perspective in the 30+ years I have been in this business up until the beginning of last year I never had to pay more than $2.50 a mile, yes the rate in some cases has tripled. Vans are a little easier to find and less expensive but it is still a struggle to find one and when you do you have to keep your fingers crossed that they will show up as scheduled or do not just drop the load.
On top of the normal issues we have been having it is about to be the produce time of year which will add more pressure to the already pressurized situation.