Fuel crisis: Higher diesel, shipping costs pile pressure on logging industry

By Radio New Zealand
The Country
March 25, 2026
Category: Finance & Economics
Region: International

NEW ZEALAND — The logging industry is warning that some companies could be on the brink as the conflict in Iran pushes up the cost of diesel. Logging operators say it’s increasingly difficult to get logs to port and if the situation drags on, export-reliant regions like South Canterbury and the west coast of the North Island could face shutdowns. The costs of shipping have risen dramatically, with rates going from roughly US$33 ($56) per cubic metre into China for March, through to about US$45 in April. Forest Management group director Glenn Moir said that would put some companies on the brink. “I can see that if it does continue, we’re going to face some real pressure in the higher-cost forests – so the ones that are further away from the market and have steeper country – just to make it economic.” There had been some huge cost pressures going through the chain.

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