palletcentral.com PalletCentral • January-February 2019 35
The Deluge
Weather is and has always been an
important factor influencing logging activity
and, in turn, hardwood production. Some
hardwood sawmill operators now carry
smaller log inventories than in the past,
mainly due to cash flow constraints.
Therefore, mills are more susceptible to lose
production when wet weather disrupts
logging. Such occurrences are not uncommon
but are usually temporary and local in nature.
In 2018, however, heavy rains persistently
disrupted logging activity and sawmill output
across much of the Eastern U.S. hardwood
producing range. According to National
Weather Service data, many areas recorded
annual precipitation totals 150% above normal, with much of the
excess precipitation coming in the last four months of the year. By
December, nearly 90% of hardwood sawmills surveyed by
Hardwood Market Report reported abnormally low log supplies.
By November, the combination of weaker demand for grade
lumber and dwindling log inventories caused many mills to reduce
operating hours. And, by December, reports of three and four-day
workweeks were commonplace. Moreover, many mills closed for
extended periods during the Christmas and New Year holidays.
From an already sluggish level in November, Eastern U.S.
hardwood production plunged in December to an annualized rate
of 6.122 BBF, according to Hardwood Market Report estimates.
In fact, it was the slowest month for production in nearly six years.
Total production in 2018 was at a five-year low of 8.182 BBF.
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