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Lumber prices have surged in recent weeks. This will have a large impact on freight forwarding as the demand for lumber has greatly surpassed the supply in some areas. Raising costs in lumber will affect wood pallet sales as well as crating materials. Since April, lumber prices have soared by more than 60%. With these prices continuing to increase, it is likely that many companies will struggle to keep lumber products in their inventories, and that wood materials will likely see a jump in price and a decrease in availability.
There are a few theories for the recent increase in lumber prices. Currently, lumber is going for over $500 for 1,000 board feet. This is a two year high for the price of lumber in America. Many believe that this surge in pricing was caused by an increase in DIY projects during the stay at home orders. Multiple months of living at home led to millions of homeowners have spare time to pursue home improvement projects. There was also a surge in construction and exterior contracting throughout the country as states loosened up restrictions on which businesses could open. A combination of these two factors has likely led to an increase in demand for lumber products. This is especially true as the most common home improvement jobs during the summer is decking construction. This increase in demand coupled with the fact that many lumber mills were shut down for multiple months has greatly impacted the price of the commodity.
There are a variety of materials that are integral to shipping. Wooden pallets and wooden crating both rely heavily on access to lumber, and their prices are directly proportional to lumber prices. This is even more significant for international shipping. Crating used for international shipping must meet certain standards set by the IPPC (international plant protection conventions). Any wood used for international packing must be treated and labeled with ISPM-15 (International Standard Phytosanitary Measures No. 15) label. If there is an overall shortage of lumber, it is likely there will also be a shortage of treated lumber that is rated for international travel.
At Crate This we are consistently monitoring changes in our industry. As lumber prices increase, it is likely that it will affect the overall cost for domestic and international shipping. As always, our team works to ensure that our clients never overpay on packaging. If you are planning to ship goods internationally or domestically, please contact Crate This for a quote.
