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. 
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.
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.
We studied the efficiency and productivity of BC’s secondary wood manufacturing sector using Data Envelopment Analysis (DEA) and Malmquist total factor productivity index (MPI), while incorporating data from both a survey on individual firms and Statistics Canada’s sectoral data. DEA results showed that BC’s secondary wood manufacturing firms had low efficiency and the factor contributing to the inefficiency was more lack of technical capability than scale of operations in most of the business types. The MPI results reveal that SWM consistently underperforms relative to the sawmill and panel sectors, with a clear divergence emerging after the 2007–2009 financial crisis. Weak productivity growth is largely attributable to limited and inconsistent technical change, reflecting a lack of innovation and adoption of new technologies. Policies aimed at supporting the sector could focus on factors improving firms’ technical efficiency and frontier such as process optimization, technology adoption and innovation, and training and skill development.
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 American Forest & Paper Association (AF&PA), Washington, has released its 66th Annual Paper Industry Capacity and Fiber Consumption Survey. …The report shows that fiber consumption declined by 3.5% in 2025, with recovered fiber consumption decreasing by 4% and wood pulp consumption falling by 3.2%. The printing-writing paper operating rate improved, reaching 82.8% in 2025, while containerboard operating rates remained steady at 91.9%. Packaging paper production also increased by 1.7%, while boxboard production essentially was flat at 12.4 million tons and tissue production remained near 7.8 million tons. Despite the resilience shown by these sectors, US paper and paperboard production declined 3.7% last year, to 66.3 million tons, AF&PA says. …Containerboard production fell 4.4% to 36.1 million tons, and containerboard capacity declined 5.1% in 2025. …Printing-writing capacity fell 13.9% last year to 7.7 million tons. …Tissue production declined 0.8% in 2025 to 7.8 million tons, though, over time, it has represented a growing share of total US paper and paperboard capacity.
Globally, fires in 2025 burned the second-lowest area on record since 2002 and emitted the third-lowest CO2 total. Yet, a third successive year of extreme wildfire emissions prevailed in Canada, and catastrophic fires in Los Angeles, South Korea and Europe killed over 90 people and forced over 300,000 evacuations. At the global scale, land area burned by wildfire has declined in since 2002, mainly owing to reduced savannah burning in Africa. However, wildfires are expanding in extratropical forests, and show increasing intensity combined with extreme socioeconomic and environmental impacts1–3. In these areas, wildfire disasters are exacerbated by human land use and the wildland–urban interface4. Many regions are experiencing episodes of extreme wildfires with high rates of spread and intensity associated with substantial loss of life, infrastructure, or carbon stores, even in years with below-average burned area. These hallmarks define an era of declining global burned area but also of rising prominence of extreme and deadly wildfires.
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.
WHISTLER — As Western spruce budworm populations continue to spread through Whistler’s forests at historically unprecedented levels, the BC government is preparing to spray thousands of hectares around the resort municipality with a biological insecticide to blunt the outbreak. The Ministry of Forests is planning to aerially treat areas using Bacillus thuringiensis var. kurstaki (Btk)—a naturally occurring soil bacterium used for decades to control defoliating insects. Taylor Holt, the provincial resource coordinator, said… the aerial overview surveys in 2025 picked up 275,000 hectares of damage. [It’s] nearly three times as much damage as noted ever historically.” …Cheakamus Community Forest (CCF) executive director Heather Beresford, said. “So this is really the only viable treatment.” Still, she acknowledged the decision comes with uncomfortable trade-offs between wanting to prevent dead trees from posing a wildfire risk and protecting local non-budworm species who will be affected by spraying BtK.
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.
DENVER — A longstanding specter of the Colorado mountains is gaining ground in a new conquest of ponderosa pine forests. An outbreak of the mountain pine beetle is spreading quickly and expected to continue this summer under “prime conditions,” according to a 
This week’s chemical blast that killed at least eight workers at Longview’s Nippon Dynawave Packaging highlights the potential dangers in the timber and paper manufacturing industries. …“We work in a highly hazardous atmosphere, in a highly hazardous industry,” Brian Wood, director of support services for Nippon Dynawave, said. …The industries involved in the range of economic activities from cutting timber to manufacturing paper have shed jobs in recent decades, yet this sector continues to have some of the deadliest occupations. The disaster in Longview highlights the dangerous chemicals used in paper making. In 2024, 13 people were killed while working at their paper manufacturing job, according to the US Bureau of Labor and Statistics. Across the country jobs in the sector have plummeted. In the last quarter century, BLS figures show paper manufacturing employment fell by 230,000 jobs to sit around 355,000 across the country. Industry researchers estimate as many as 45 mills closed last year.