Western Pallet Magazine February 2019 | Page 15

APRIL 2016

OVTOBER 2016

In October, prices for softwood lumber in U.S. drops 10.3%

In October, prices for softwood lumber in the U.S. dropped 10.3% - the largest decline since May 2011, according to the Producer Price Index (PPI) release by the Bureau of Labor Statistics, as reported by Lesprom.com. The producer price index for softwood lumber has fallen 21.2% since setting the cycle and all-time high in June. Even after the decrease, however, the index currently sits just 4.7% lower than the prior-cycle high set in 2004, reported the National Association of Home Builders (NAHB).

I

“The allegation that softwood-faced plywood importers are circumventing the Chinese hardwood plywood AD/CVD orders is simply wrong because the Department of Commerce already found that softwood-faced plywood is expressly excluded from the AD/CVD cases.

“While tariff dodgers do exist, they represent a small population of those engaged in global trade. In reality, the majority of those engaged in trade are good actors despite the complex and rapidly changing environment.

“Tariffs are taxes. They are paid by American families, farmers, businesses, workers and communities. They are not paid by the exporting country. They are paid here at home.”

Chinese Plywood Plants Return to Production

Last year, more than 3,000 Chinese plywood plants were forced to close while dozens of bigger ones were frequently forced to cut production, in efforts to reduce pollution.

According to the South China Morning Post, however, many, if not all, of the plywood plants have come back to life this year as Beijing has swept aside its more demanding requirements to reduce air pollution.

This year the aim is for a 3 per cent cut in PM2.5 emissions – a fraction of the decrease a year earlier and below the 5 per cent initially proposed.

Ministry spokesman Liu Youbin said this year’s targets did not mean China had lowered environmental requirements. They were, rather, “realistic” and “challenging” goals after big improvement was made last year.

The change – against the background of a slowing economy – followed complaints from employers and the public that production suspensions and plant closures disrupted operations, while the replacement of coal heating with gas by some local governments left many poor families without heat last winter.

FEBRUARY 2019

It is important to remember that a facility is responsible to know how its dunnage (DUN) material is used. In ALSC's Wood Packaging Material Enforcement Regulations dated November 14, 2014, it states in Section 1.5.1:

1.5.1 Dunnage, as defined by ISPM 15 is wood packaging material used to secure or support a commodity but which does not remain associated with the commodity. As dunnage is a wood packaging product available as an individual piece of lumber it is a product with special considerations. Those considerations are:

1 Dunnage is not intended for use in the construction of wood packaging material pallets, crates, boxes, etc.

2 The seller shall inform its customers of the requirements of its use.

3 When improper use of dunnage is encountered, the agency shall take corrective action with the producer and, if necessary, the customer or owner. If for any reason the improper use is not corrected, the agency under whose supervision the dunnage was produced shall, at a minimum, notify the producer and the customer or owner of their responsibilities should any damages and liability arise from the improper use of dunnage.

What is important to take away from this is that it is the facility's responsibility to advise their customers of the proper use of dunnage material. It cannot be used to build multi-component WPM. It is meant to be used only as an individual piece of wood for blocking, bracing or support.

There could be liability issues related to the improper use of IPPC dunnage marked material internationally and a facility's customers should be made aware of this when they purchase this material from you. Please let your inspector know if you have further questions related to the proper use of IPPC dunnage marked WPM.

This article was reproduced from Timber Products Inspection, Inc.'s February newsletter.

Dunnage Reminder