palletcentral.com PalletCentral • November-December 2017 25
worsened during the next few months. Railroads and tie treating
operations were flush with ties and railroads were reducing capital
investments, including tie
purchases. Consequently, treating
plants implemented quotas that
sharply reduced tie demand
almost overnight. The impacts to
hardwood sawmills varied from
moderate to severe depending on
the volume of ties produced and
their longevity as a supplier.
In response, sawmills rapidly
curtailed tie production,
including several companies that
idled dedicated tie mills they had
recently opened. Log decks were
low across much of the U.S. at
that time, which hastened the
correction in tie output. It was not long before treating plants
realized they may have overcorrected purchasing volumes. By early
summer, most began to loosen
quotas, which soon had the
intended effect – crosstie receipts
edged higher.
Sawmills are generating more
crossties now than earlier in the
year but are not overwhelming
the market. Strong domestic and
international demand for #2A
and #3A Common Red and
White Oak and improved
markets for other industrial
products are keeping tie supplies
in check.
The Railway Tie Association's
(RTA) mid-2017 market update
for Industrial Hardwoods
