Kevin Mason
The Global Supply Chain Pressure Index, which provides a gauge of global supply chain conditions, spiked in April and currently sits at its highest level in almost four years. Several other measures, including the World Bank’s Supply Chain Stress Index are hovering around all-time highs as well. The conflict in the Middle East and resultant spike in energy prices has clearly driven some of the recent increase in supply chain pressure, and the logjam in the Strait of Hormuz, along with some ongoing challenges in the Red Sea, have forced many vessels to take longer routes, adding travel time, increasing fuel costs, and stretching capacity.
However, the situation in Iran is not the sole driver of recent supply chain pressure: In the US we are seeing an acute shortage of truck drivers following a government crackdown on driver qualifications and after a wave of trucking-firm bankruptcies. As a result, the Federal Reserve Bank of St. Louis’ long-distance trucking price index has recently jumped from a reading of 181 in January to 210 in April (also approaching all-time highs last seen during the pandemic). Similarly, overland freight pricing data from DAT Freight and Analytics shows that flatbed truck rates have surged since the onset of the Iran war—the national average spot rate for flatbed trucks was $2.72 per mile in February and has rocketed to $3.64 by May. DAT’s national load-to-truck ratio (the number of loads posted for every available truck posted on the DAT load board) sat at an eye-watering 72 in April, up from 35 in April 2025 and just 19 in April 2024.
A deal with Iran may be in the works, but as we learned after the COVID pandemic, it can take months (if not years) for supply chains to normalize. Buckle up.
OTTAWA, ON—Canadian Forest Owners (CFO) congratulates the Honourable Tim Hodgson, Minister of Energy and Natural Resources, and members of the Forestry Transformation Task Force on the release of their report, which recognizes the important contribution of Canada’s private forests in building a competitive, sustainable, and resilient forest sector. Representing approximately 480,000 private forest owners across the country, CFO’s members manage 25 million hectares of privately owned forest land from coast to coast. Together, they account for approximately 10 per cent of Canada’s forest land base and 20 per cent of national forest production. As the report notes, “Canada has a proud tradition of private forest ownership.” Private forests contribute an estimated $14.5 billion annually to Canada’s economy and support nearly 40,000 direct jobs in silviculture, harvesting, transportation, and forest products manufacturing. …For CFO, the report’s recognition of private forests is an important step forward. However, the organization believes that recognition must now be accompanied by policy action.
VICTORIA, BC
Mayor Everett Baker was pleased to share some positive news about Interfor as a second shift resumed at the Interfor sawmill in Grand Forks. Baker stated in a text message to The Gazette he was pleased to hear that the second shift started on Monday. In addition, the planer mill is also expected to be back to two shifts by the end of the month. …“I want to thank Interfor for working with all levels of government to continue to keep our mill operating.” While the extra shifts are great news, Baker added the mill needs a log supply, but the team working to get the mill back up and running to at-or-near full shifts is getting closer to their goal. It wasn’t clear how many employees would be returning. In November, a single shift of 68 employees was hired back at Interfor.
Workers at Western Forest Products Value-Added Division (WFP VAD) in Chemainus, BC, have joined the United Steelworkers union. The successful union organizing campaign was driven by a desire for better representation and a stronger voice on the job with a union that will fight for improvements that forestry workers need and deserve. …After significantly falling behind other USW-represented forestry workers in terms of wages, benefits, job security and strength on the job, the WFP VAD workers decided to come together and join a union with a proven record of achieving exactly what they are lacking in their collective agreement. …“Our local union is happy to welcome new Steelworker members from WFP VAD,” said Brian Butler, USW Local 1-1937 President. …“These workers deserve a union that has the strength, experience and resources to deliver real results at the bargaining table,” said Jeff Bromley, USW Wood Council Chair.
VANCOUVER, BC 
North American lumber futures climbed to approximately USD 597.50 per thousand board feet on June 3, their highest level since April, as persistent supply constraints continued to offset subdued housing demand. North American lumber futures rose to around USD 597.50 per thousand board feet on June 3, reaching their highest level in eight weeks. The move represents a 4.1% increase from a month earlier and reflects a market still dealing with the impact of Canadian import disruption. The price rise comes despite historically soft housing starts, showing that supply concerns remain an important driver for the market. Mills and distributors are holding limited inventories, while seasonal restocking ahead of the summer building season has added support to prices. …The net result is a structurally tight supply position. Mills and distributors are holding limited inventories, while buyers are entering the summer building season with restocking needs.
Lumber increased to 598.00 USD/1000 board feet, the highest since April 2026. Over the past 4 weeks, Lumber gained 3.57%, and in the last 12 months, it increased 0.5%.
Canadian wood producers and manufacturers say they know how to solve the country’s housing shortage and, at the same time, increase demand in the construction industry for their products. The “two-fer” solution is laid out in a recent report published by the Canada West Foundation. The report is based on a December 2025 roundtable at which the Canadian Wood Council and the Forest Products Association of Canada convened leaders from construction and forestry to discuss how to increase the use of wood products in prefabricated, modular and panelized wood construction in residential multi-storey buildings. In the CWF report, these methods of construction are identified collectively as Modern Methods of Construction, or MMC. Eric Johnson, for FPAC and CWC, says factory-built components make better use of materials and skilled labour, reducing waste and increasing productivity. …The biggest barriers to scaling up wood-based housing are not technical but regulatory and organizational.
NOVA SCOTIA — When Tricia Murray rebuilt her home after the devastating 2023 wildfires, she expected her insurance premiums to soar. …Instead, her premium dropped by 12%… because her new home uses modern, fire-resistant materials and incorporates a buffer zone. Murray’s experience highlights a shift in how insurance companies calculate risk. For decades, insurers relied purely on history, it was classified as low risk. ….Instead of grading entire neighbourhoods under one risk level, insurers are using advanced tools like satellite imagery and laser scanning to assess individual properties. This new approach looks at specific, real-time details: The proximity of trees and brush to a structure. The type of roofing and building materials used. Property maintenance, such as clearing dry leaves from decks and removing wood chips near walls. Amanda Dean, at the Insurance Bureau of Canada, said those tools give homeowners the power to lower their own risks by following FireSmart Canada guidelines.
For two decades, Harold Larson helped battle wildfires across BC, Alberta, the US, often working shoulder-to-shoulder with structural firefighters. But at every one of those fires where he and his crew risked their safety alongside their municipal colleagues, there was one perplexing difference: According to the federal government, Mr. Larson was not classified as a firefighter at all. …It’s a holdover from wildland firefighting’s early decades, when the job wasn’t to protect homes, towns and lives – it was to protect timber values as part of the country’s forestry industry. …Canada’s wildland firefighters are seeking to join their municipal counterparts, a cause most recently championed by Vancouver Island MP Gord Johns. …As fire seasons continue to worsen, Mr. Larson said this only underscores the need for Ottawa to recognize that both structural and wildland firefighters are equally important when it comes to keeping people and communities safe. [to access the full story a Globe & Mail subscription is required]
The Canadian government recently announced that it will lease a fleet of 10 firefighting aircraft and other support assets to be deployed for the 2026 wildfire season. The plan will see these 10 leased aircraft being managed by the Canadian Interagency Forest Fire Centre deployed strategically across the country and made available to provinces as they face intense wildfires. …This announcement follows the government’s fall 2025 budget announcement of a $316.7-million investment in Canada’s aerial wildfire-fighting capacity — an announcement that acknowledged a growing national challenge. …Canada’s wildfire aviation system remains fundamentally decentralized. What Canada lacks is a clearly defined national aerial response framework. That framework should establish how federally-funded aircraft are deployed, how they are prioritized when multiple provinces face simultaneous fires, and how they integrate with the emerging detection technologies — including satellite monitoring and long-endurance drones — that can identify fires earlier than ever before.
The natural cooling effect of snow in northern forests following forest fires is rapidly diminishing. As a result, a fragile climate equilibrium threatens to disappear, potentially leading to additional warming in one of the most climate-sensitive regions on Earth. This is the conclusion of new research by Vrije Universiteit Amsterdam. …After a forest fire, the landscape in northern regions often remains open and covered with snow for a long time. This snow reflects a great deal of sunlight and makes the Earth’s surface brighter—an effect known as snow albedo. For years, this compensated for part of the warming caused by CO2 emissions from forest fires. [The study found] that the cooling effect of snow has decreased by nearly 30 percent since the 1960s. Whereas in the past almost half of Canadian forest fires eventually reached natural climate equilibrium …this now applies to only about one in four or five fires.
CRESTON, BC — A Kootenay-based project is receiving provincial funding to convert forestry waste into a soil supplement, benefiting agriculture and forestry sectors. …Ravi Kahlon, Minister of Jobs and Economic Growth, said “By turning wood waste into valuable new products, this project is creating jobs, supporting local businesses and helping build a stronger future for the community.” …Through the Rural Economic Diversification and Infrastructure Program (REDIP), the Province is providing approximately $182,000 to Wildsight to support its Fire for Healthy Soils project in Creston. The funding supports a pilot project to convert wood waste into biochar, which is a stable, carbon-rich form of charcoal produced by heating organic waste in a low-oxygen environment. …The provincial investment will support Wildsight, the Creston Community Forest and the Regional District of Central Kootenay to collaboratively pilot a biochar business project using low-cost kiln technology.
Kelowna has topped the list of Canadian cities most at risk from wildfires in 2026, according to a report from a Toronto-based online insurance company. Using data from Natural Resources Canada’s recently upgraded Canadian Wildland Fire Information System, MyChoice said Kelowna has a wildfire Risk Index score of 6.8/10. It was the only city to get a “very high” rating on the MyChoice Canada’s 2026 wildfire risk map. “While Prairie cities recorded more severe forecast fire weather conditions, Kelowna’s extremely high community exposure, driven by dense wildland-urban interface development, surrounding forest fuel, and historical wildfire activity, pushed it to the top overall,” said MyChoice in its annual wildfire study. To calculate the wildfire risk index, MYChoice gave equal weight to two factors: Forecast fire weather severity and community exposure.
The Province is investing $155 million toward reforestation programs to plant more than 125 million trees throughout BC. The funding, which also includes investments from the federal government, will deliver both large-scale reforestation and targeted projects that restore critical habitats, conserve biodiversity and support wildfire recovery. “Since 2017, we’ve invested in planting 400 million trees in B.C. Now, we’re adding 125 million more,” said Ravi Parmar, Minister of Forests. “As we head into the Council of Canadian Forest Ministers Conference, hosted right here at home, we’re showing how B.C. continues to lead not only in forestry, but in reforestation and restoration. The Province’s reforestation investments will support: more than $56 million for reforestation, more than $1 million for B.C.’s Riparian Recovery Project, and more than $99 million for large-scale reforestation through the BC Forest Investment Program. …B.C. has secured more than $200 million in federal funding for reforestation and habitat restoration initiatives in British Columbia…
In 2025’s budget, Ontario allotted $135 million for its Emergency Forest Firefighting fund, which Firefighter Noah Freedman describes as money that “keeps the lights on.” The province ended up spending double that: $271 million, according to this year’s budget. But that same document penciled in just $150 million again for this year. The province did not respond to requests from Canada’s National Observer asking why the budget hasn’t been increased. Not allotting adequate funds translates to real impacts on the frontlines, said Freedman, who is also vice president of Ontario Public Service Employees Union Local 703. He said last season was “riddled with logistical problems” due to a lack of available funding: not having crews and helicopters where they were needed, and scrambling to request more… “None of that is because of our leadership in our agency. It’s a result of not getting anywhere near the funding that we need to truly be decision-makers,” Freedman said.
A massive fire near Gogama has doubled in size again overnight. This morning (June 4), the Ministry of Natural Resources mapping has the fire at 2,945 hectares. That’s more than double what it was last night, when it was reported as 1,100 hectares. Here’s what you need to know about the situation today: