{"id":18741,"date":"2024-06-28T14:41:22","date_gmt":"2024-06-28T04:41:22","guid":{"rendered":"https:\/\/woodcentral.com.au\/?p=18741"},"modified":"2024-10-21T20:17:47","modified_gmt":"2024-10-21T10:17:47","slug":"global-timber-hit-hard-as-red-sea-crisis-fuels-even-higher-costs","status":"publish","type":"post","link":"https:\/\/woodcentral.com.au\/global-timber-hit-hard-as-red-sea-crisis-fuels-even-higher-costs\/","title":{"rendered":"Global Timber Hit Hard as Red Sea Crisis Fuels Even Higher Costs"},"content":{"rendered":"\n<p>The Red Sea Crisis continues to wreak havoc with global timber supply chains with traders continuing to grapple with surging container costs and a new squeeze on the global port system, with the backlog causing massive congestion in the Middle East, Asia, and Africa.<\/p>\n\n\n\n<p>Yesterday, James Latham, one of the UK&#8217;s largest timber merchants, reported that the crisis\u2014which has seen the world&#8217;s largest shipping companies reroute $200 billion worth of trade around the Cape of Good Hope\u2014led to profits being slashed by 30% for the 12-months to March 31.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.londonstockexchange.com\/stock\/LTHM\/latham-james-plc\/company-page\" target=\"_blank\" rel=\"noreferrer noopener\">In a statement provided to the London Stock Exchange<\/a>, according to James Latham: &#8220;The cost prices from the majority of our manufacturers, excluding (Red Sea impacted) freight costs, are relatively stable,&#8221; but &#8220;we are very mindful of the uncertainties created by the current geopolitical instability and the upcoming UK general election.&#8221;<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"youtube-embed\" data-video_id=\"9rK9pR5cDTE\"><iframe loading=\"lazy\" title=\"&#039;Attacks against international shipping in the Red Sea area are not acceptable&#039;- IMO Chief | UN\" width=\"696\" height=\"392\" src=\"https:\/\/www.youtube.com\/embed\/9rK9pR5cDTE?feature=oembed&#038;enablejsapi=1\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<\/div><figcaption class=\"wp-element-caption\"><em>Global shipping wants the UN to support commercial vehicles operating through the passage. Footage courtesy of <a href=\"https:\/\/www.youtube.com\/@unitednations\">@unitednations<\/a><\/em><\/figcaption><\/figure>\n\n\n\n<p>It comes as China&#8217;s ambassador to the United Nations pushed for a lasting cease-fire in Gaza, stressing that the Red Sea crisis is a spillover of the Gaza conflict: &#8220;The current tension in the Red Sea is one of the manifestations of the spillover of the Gaza conflict,&#8221; <a target=\"_blank\" href=\"https:\/\/www.chinadaily.com.cn\/a\/202406\/28\/WS667dfffda31095c51c50b41d.html\" rel=\"noreferrer noopener\">according to Geng Shuang, China&#8217;s deputy permanent representative to the United Nations.<\/a><\/p>\n\n\n\n<p>&#8220;An immediate and lasting cease-fire in Gaza will help cool down the situation in Yemen and the Red Sea,&#8221; Mr Shuang said, adding that the bottleneck has had dire impacts on the supply chain for bulk products\u2014including timber\u2014responsible for 10% of global trade, including 40% of Asia-European trade.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.worldstopexports.com\/sawn-wood-exports-country\/\" target=\"_blank\" rel=\"noreferrer noopener\">According to the World&#8217;s Top Exports, the crisis has impacted the US by up to $50.8 billion of sawn wood<\/a>, with China among the most affected. The big six\u2014including China, Canada, Russia, Sweden, Germany, and the US\u2014are responsible for over 70% of exported timber that widely uses the seaway; however, the impacts are being felt wider, <a href=\"https:\/\/woodcentral.com.au\/australia-bound-timber-imports-now-tied-up-in-red-sea-crisis\/\" target=\"_blank\" rel=\"noreferrer noopener\">with Australian-bound timber tied up in the bottleneck.<\/a><\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"youtube-embed\" data-video_id=\"uDADZxk8Xd8\"><iframe loading=\"lazy\" title=\"Red Sea rivalries: The Gulf, the Horn, and the new geopolitics of the Red Sea\" width=\"696\" height=\"392\" src=\"https:\/\/www.youtube.com\/embed\/uDADZxk8Xd8?feature=oembed&#038;enablejsapi=1\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<\/div><figcaption class=\"wp-element-caption\"><em>The Red Sea is one of the most contested and politically unstable regions on earth. Global shipping experts are pushing for global shipping to reduce its dependence on the disputed seaway. Footage courtesy of <a href=\"https:\/\/www.youtube.com\/@BrookingsInstitution\">@BrookingsInsitute<\/a>.<\/em><\/figcaption><\/figure>\n\n\n\n<p><a target=\"_blank\" href=\"https:\/\/www.cityam.com\/maersk-shipping-giant-hikes-guidance-as-shipping-costs-rise-on-red-sea-chaos\/\" rel=\"noreferrer noopener\">Earlier this month<\/a>, Maersk, the world&#8217;s second-largest container company by fleet size, said trading conditions remained subject to &#8220;higher than normal volatility&#8221; given the unpredictability of the Red Sea situation and the lack of clarity on future supply and demand. The crisis is now adding 2-3 weeks to shipping times, costing up to US $1 million a week in fuel.<\/p>\n\n\n\n<p>More than 100 freight companies, including CMA CGM, Hapag-Lloyd, Evergreen, and oil giant BP, have stopped movements through a channel. At the same time, insurance premiums for those brave enough to use the Red Sea <em><a target=\"_blank\" href=\"https:\/\/www.reuters.com\/markets\/commodities\/london-marine-insurers-widen-high-risk-zone-red-sea-attacks-surge-2023-12-18\/\" rel=\"noreferrer noopener\">shot up nearly tenfold<\/a><\/em> since the attacks began.<\/p>\n\n\n\n<p>The impact has been significant, particularly in China, India, Vietnam, Thailand, Indonesia and European countries, including the United Kingdom, Germany, France, Spain and Italy &#8211; where a surge in timber cargo has used the passage to enter European markets via China and the ASEAN region.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>For more information,<a href=\"https:\/\/woodcentral.com.au\/why-red-sea-crisis-threatens-global-timber-supply-chains\/\" target=\"_blank\" rel=\"noreferrer noopener\"> visit Wood Central&#8217;s special feature on the Red Sea Crisia and its impact on global timber supply chains.<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>The Red Sea Crisis continues to wreak havoc with global timber supply chains with traders continuing to grapple with surging container costs and a new squeeze on the global port system, with the backlog causing massive congestion in the Middle East, Asia, and Africa. Yesterday, James Latham, one of the UK&#8217;s largest timber merchants, reported [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":14588,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wpscppro_dont_share_socialmedia":false,"_wpscppro_custom_social_share_image":0,"_facebook_share_type":"","_twitter_share_type":"","_linkedin_share_type":"","_pinterest_share_type":"","_linkedin_share_type_page":"","_instagram_share_type":"","_medium_share_type":"","_threads_share_type":"","_google_business_share_type":"","_selected_social_profile":[],"_wpsp_enable_custom_social_template":false,"_wpsp_social_scheduling":{"enabled":false,"datetime":null,"platforms":[],"status":"template_only","dateOption":"today","timeOption":"now","customDays":"","customHours":"","customDate":"","customTime":"","schedulingType":"absolute"},"_wpsp_active_default_template":true},"categories":[52,50,37,33,53,2,32,46,31,40],"tags":[],"ppma_author":[70],"class_list":{"0":"post-18741","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-asia","8":"category-australia","9":"category-building-and-construction","10":"category-editors-picks","11":"category-europe","12":"category-featured","13":"category-global-news","14":"category-industry","15":"category-top-stories","16":"category-wood-products"},"authors":[{"term_id":70,"user_id":2,"is_guest":0,"slug":"jason","display_name":"Jason Ross","avatar_url":{"url":"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/01\/J-Ross-headshot.jpeg","url2x":"https:\/\/woodcentral.com.au\/wp-content\/uploads\/2023\/01\/J-Ross-headshot.jpeg"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":"","8":""}],"_links":{"self":[{"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/posts\/18741","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/comments?post=18741"}],"version-history":[{"count":1,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/posts\/18741\/revisions"}],"predecessor-version":[{"id":18742,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/posts\/18741\/revisions\/18742"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/media\/14588"}],"wp:attachment":[{"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/media?parent=18741"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/categories?post=18741"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/tags?post=18741"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/woodcentral.com.au\/wp-json\/wp\/v2\/ppma_author?post=18741"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}