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.
The Trump administration wants to reimpose a 10% tariff on top trading partners including the EU and Canada, while hitting others with a higher rate, citing concerns about forced labor. The US Trade Representative’s Office made those proposals as part of a report with the results of its investigation into 60 trading partners over their failure to impose and enforce laws to prohibit goods made with forced labor. It’s one of two sprawling trade investigations the administration launched earlier this spring in an effort to restore President Donald Trump’s global tariffs that were struck down by the Supreme Court in February. …The USTR probe, conducted under Section 301 of the Trade Act of 1974, found that six countries have failed to effectively enforce existing laws prohibiting goods made with forced labor: Canada, Ecuador, the European Union, Indonesia, Mexico and Pakistan. The report recommended a 10% duty. It recommended the same duty for another nine countries.
Canada has given the US and Mexico official notice that it wants the free trade deal between the three countries to be renewed. In a letter to his American and Mexican counterparts, Canada-US Trade Minister Dominic LeBlanc said the country is seeking renewal of CUSMA when it comes up for review on July 1. LeBlanc is in Washington Tuesday for a meeting with U.S. Trade Representative Jamieson Greer. All the signals from the White House over the past year and a half indicate that the Trump administration does not want a straightforward renewal of CUSMA and instead wants significant changes to its terms. …LeBlanc calls CUSMA “highly beneficial to each of our countries and to the integrated North American economy,” but goes on to acknowledge that the other countries may want to propose “improvements.” …Whatever happens on July 1, CUSMA is slated to remain in effect until 2036. 
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.
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.
FORT ST. JOHN, BC — After much speculation, the Canfor sawmill in Fort St. John has officially been sold to outside interests. Canfor media relations representatives confirmed the sale of the sawmill, planer, pellet plant and energy systems to Rocky Mountain Salvage on May 29th. Rocky Mountain Salvage is a scrap metal and garbage recycling company with interests in Hinton and Edson, Alberta. The financial terms of the deal were not disclosed. “Since announcing the closure of the Fort St. John sawmill, Canfor is working to divest the site and assets,” said Canfor. …The sawmill was announced as closing in September 2024, affecting 220 jobs, along with a facility in Chetwynd.
WAYNE, Pennsylvania — Saothair Capital Partners, a private equity firm, announced it has completed the acquisition of EAM Corp. from Domtar through a newly-formed affiliate. Founded in 1998 and headquartered in Jesup, Georgia, EAM is a manufacturer of nonwoven airlaid and laminated absorbent materials used in feminine hygiene, adult incontinence, baby diaper, medical, industrial and food packaging applications. …Following the acquisition, current EAM General Manager Vanecia Carr will serve as Chief Executive Officer and Lori Venn will serve as Senior Vice President, Sales and Marketing.
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%.
The US commercial construction and wood products landscape has been undergoing a noticeable geographic realignment. …At the center of this transition are two powerhouse species that help define the market: Douglas Fir and Southern Yellow Pine. Understanding how manufacturers are positioning themselves around these distinct timber baskets might offer valuable insight into where resources are building the critical infrastructure for the next decades of commercial, agricultural, and residential construction in the United States. …While the West Coast navigates these supply bottlenecks, the American South seems to be experiencing a sustained wave of modernization and investment, capitalizing on robust regional resources. …Take for example the recent investments made by companies like Canfor. …The company opened a cutting-edge sawmill complex in Axis, Alabama, an endeavor that highlights the industry’s shift toward high-tech manufacturing.
Russian lumber production is rising despite deteriorating sales and falling exports, driving inventories higher as weak household purchasing power limits the domestic market’s ability to absorb excess supply, according to the monthly Russian Lumber Industry Insights report. Companies are trying to maintain production volumes, the report said, but warehouse stocks are rising because domestic demand is weakening. The ministry in May sharply reduced its growth outlook, revising GDP growth for the current year to 0.4% and to 1.4% in 2027, and reported that the economy contracted by 0.3% in the first quarter. …At the same time, the crisis in China’s construction sector has reduced import demand and intensified price competition. …Logistics costs for Russian suppliers continue to rise, the report said, further reducing the profitability of shipments. Taken together, weakening domestic demand, lost market share in China and higher transport costs are creating pressure on exporters and contributing to a buildup of stocks.
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.
If you’ve ever spent some time amongst old-house lovers, and especially the craftspeople who work on them, you’ll no doubt have heard mention of “old-growth lumber.” It’s a material that’s spoken of with reverence, usually as supporting evidence for the “they don’t build ’em like they used to” argument, and always contrasted with today’s lumber, which is deemed comparatively subpar. So what is it about old-growth lumber that makes it so legendary, and if it’s so great, why don’t we use it anymore? …So yes, the trees are generally between 100 and 150 years old, but old-growth lumber is also characterized by competition to survive and disturbance history. In other words, if the forest is left alone for long enough, and no natural disasters reset the clock, you end up with old-growth trees. So it’s not that we can’t produce old-growth lumber now, it’s that it doesn’t fit our production needs.
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 2024, the Tsay Keh Dene Nation and McLeod Lake Indian Band bought a logging licence near the town of Mackenzie from Canfor for $69M. …“It’s just a huge step to have some local Indigenous nations who are vested in our community step forward,” Makenzie Mayor Atkinson said. …But what if Canfor and others aren’t logging at rates close to what their licences say they can? If they sell such licences, what should those licences be valued at? And what role should the B.C. government play as the party that issues those licences and must approve any future sales? …Canfor, West Fraser and Western Forest Products alone control 39% of the timber that the government has firmly committed to logging companies. For decades, successive provincial governments granted logging licences to companies on the requirement that the public get something in return. The quid pro quo was that the companies would build mills.
MONTANA — The US Forest Service and the timber industry have effectively lobbied Congress to enact laws based on fire paranoia that cut the public owners of these forests out of the process. They want the government to build roads at taxpayer expense to while compromising the best remaining fish and wildlife habitat and quiet spaces. Upon a molehill of truth they have constructed a mountain of disinformation. Claiming an emergency, the Forest Service is fast-tracking commercial timber sales in ways that severely limit and exempt them from environmental analysis. …They are removing the administrative review and public objection process. The bad stuff for wildlife, fish and people including ugly clearcuts, road construction and reduced water quality are being frontloaded. The good stuff including stream restoration and road reclamation are back ended. If past is prologue, the latter will not be funded or implemented as the Forest Service shifts its priority.
The UK Department for Environment Food and Rural Affairs (DEFRA) has published detailed guidance setting out how a planned UK‑EU sanitary and phytosanitary (SPS) deal will reshape forestry-related trade – and is urging businesses to start preparing now. In a wide‑ranging update, the department set out how the agreement would operate in practice, including the removal of most routine border checks and certification requirements for goods moving between Great Britain and the EU. But the guidance also makes clear the scale of regulatory change required, with the UK set to align dynamically with EU rules across a wide set of areas, including pesticides and plant imports. Among the most significant operational shifts set out for horticultural businesses (which includes forestry-related activities). …Further detail on transition periods and exceptions is expected later in 2026, with full implementation targeted for mid‑2027. Read the full 
TUSCALOOSA, Alabama — A worker at a lumber mill in north Tuscaloosa County was killed in a workplace accident Wednesday night, investigators have confirmed. Captain Jack Kennedy, the commander of the Tuscaloosa Violent Crimes Unit, confirmed that they are investigating a workplace fatality at the W G Sullivan Lumber Co. on Highway 171 east of Samantha in the northern part of the county. Kennedy said the worker, whose identity the VCU is not publicly releasing, died in an accident involving machinery. He said the body will be sent to Montgomery, where the Alabama Department of Forensic Sciences for autopsy. At this time, the VCU does not believe there was a criminal element to the death, which is why they are not identifying the victim publicly.