14 WESTERN PALLET
Skyrocketing Freight Costs Hampered Lumber Sales
As the usual slow-down to construction framing dimension softwood lumber sales occurred into late September, the situation of severely-strained inventories continued. It seemed like most folks were just waiting for the year to actually wind down into winter, and did not want to change their practice of not loading up their yards with wood.
The now multi-year habit of just-in-time buying seems to have become entrenched. While demand was low enough to justify this, the burgeoning situation of sharply-rising fuels costs started causing real problems. Customers who were satisfied with the sales prices abruptly balked when the cost of fuel surcharges were added to their orders.
Expect this to become a regular occurrence, as diesel prices will indeed rise further into the beginning of 2027.
The next unknown is the arrival of storm season in the US, and what that will mean for property destruction thus rebuilding. There have been times in the past when re-roofing activity during December was high enough to prop up lumber sales somewhat.
KEY COMMENT:
Many categories of studs prices slid downward. Panels remained a headscratcher, with OSB prices again showing uncharacteristic strength for the time of year.