Delivering Logs

[Henz]

Man I will tell you, the logging industry is really hurting around here. Guys shelling out thousands in diesel and alot of the trucking companies that would truck logs ahve thrown in the towel. I was supposed to get logs delivered a month ago and just called the place and they said that they werent delivering anymore

 

[JustWood]

My current wood inventory will be gone by next spring and mills I contract with for wood are either shutdown or operating at 50% capacity. It's not looking good. Next May the plates and insurance ($6000 per truck) will expire . If the supply(logs and wood coming in) end of my business doesn't pick up and I can't raise my wood prices to a level that is profitable according to production and timber costs then I will close up shop and drop plates and insurance on the trucks. In the 20 years I have been in business I have never seen the forest products industry in this condition.

 

[Henz]

it is pretty bad. I put a hault on my logging that I was gonna do of my white pine. might as well keep it for sunnier days

 

[Tfin]

Strange times indeed.....there's a higher demand for wood now than there may ever of been, but no one can afford to deliver it.

Weird.

 

[Henz]

sure they can. but expect to pay $300 for a cord of split dry wood.

 

[jpl1nh]

While we all look at this from a cordwood perspective, I imagine the firewood segment of the timber industry is really a tiny portion of the total picture. What is happening within the industry that's relly causing problems? Obviously transportation is a substantial factor but is the housing crisis reducing demand for lumber? Is foreign competition a factor? All of these? Eric, where are you? Drag your butt out of the Boiler Room and come visit us common folk here.

 

[savageactor7]

^Well at least you can harvest off you own land if you had to...look at all the city wood burners that now have to scramble.

 

[Henz]

and thats exactly what I am gonna start doing this weekend.

 

[jpl1nh]

^Well at least you can harvest off you own land if you had to...look at all the city wood burners that now have to scramble.

Boy, you've got that right. My wif and I bought our little house in the woods because we liked the privacy. I never imagined how valuable the wood all around would become to us. When I consider that my 250 gals of heating oil sitting in my tank is now worth around $1100-1200 bucks and I'd use three of those if I didn't heat with wood I'm feeling blessed. We have all we need, I have probably 7-8 years worth right now that I'm finnishing processing and getting under cover. If things remain the same around us, we're set for heat for life. In these increasingly unpredictable times its nice to have the heat predictable for us. I don't know how the average working guy without that option is going to make ends meet.

 

[Henz]

its called, helping themselves to whats not theirs!

 

[RedRanger]

While we all look at this from a cordwood perspective, I imagine the firewood segment of the timber industry is really a tiny portion of the total picture. What is happening within the industry that's relly causing problems? Obviously transportation is a substantial factor but is the housing crisis reducing demand for lumber? Is foreign competition a factor? All of these? Eric, where are you?

If it`s foreign competition? It aint coming from around here. Mills shutting down everywhere. And this is the first time that I can ever recall loggers not working because there is not enough mills to turn the logs into lumber. Usually they only shut down for fire season or snow.

I`m not cutting any wood from my acreage cept for standing dead or blowdowns. Saving the rest for if things get even grimmer.It wouldn`t be a stretch to say it`s starting to get downright scarry.

 

[Henz]

true, but jsut think of how it will turn back into gangbusters at some point when all those mills re-open and start making lumber faster and still not being able to keep up with demand! iTs all a cycle. For now, and for me, I am ceasing some of the luxeries that I ahve grown accustomed to. Instead of getting that new vehicle I was planning on, I will make the final payment on my current one and save $400/month without having a car payment. #2. I will only play golf 1x per week rather thatn 2-3..Between those two things, I will save around $600/month..

 

[mtarbert]

Call me sadistic but, I cannot waite until this winter (and I hope it is a cold one) when Me and my family are toasty warm in our home. I feel like the Ant and the others are Grasshoppers. I have been cutting , spliting and stacking for three weekends. Gathering all available wood expecting lean times while others are golfing and going to the beach.........Keep up the good work.....fellow Ants
Mike

 

[savageactor7]

^Me too..I'm probably at or about 2 years ahead on split wood and I'm still intend to keep going while fuel is still readily available...because I remember the shortages of the 70's. Of course it's pretty easy for me cause I'm bucking logs I've harvested over the last 2 /3 years on a huge drainage project. If I had to harvest logs from scratch...I don't think I'd be this far ahead. I'm gonna keep on grinding cause I have another 35/45 easy takes. After that it's back to harvesting...and I'm not really looking forward to that but what the heck it's like money in the bank to store the logs up...and it's been to windy or cold to golf or boat...but perfect cutting weather.

 

[Jerry_NJ]

I don't understand how the cost of fuel would blow the "lid"off of cord wood prices. It has to me other aspects of the economy and the use of fuel therein that's killing the supply of cord wood.

Look, if a cord of wood cost 10 gallons of gas, lets say gas, that's a lot. at $4 per gallon the total cost of gas is $40, so add $40 to the cost of a cord of wood, don't add $100 or more and say it is because of the cost of gas.

I too have a lot of wood on my property, but I am limited mostly to white pine and red cedar. The hardwoods I have are so large I couldn't harvest without first hiring a tree service to take them down, even then they'd also have to "buck" the main trunk as that would take a 30"chain bar or longer, I estimate. Not sure what that would cost per cord, given I split, truck to the wood pile, and stack myself - I could also buck/cut the large branches myself, just not the main trunk. I, of course, really don't want to cut down those beautiful trees either. I guess if things get bad enough the I feel I have to take the big ones down, I'll need to stand armed watch to protect the wood pile.

 

[iceman]

I don't understand how the cost of fuel would blow the "lid"off of cord wood prices. It has to me other aspects of the economy and the use of fuel therein that's killing the supply of cord wood.

Look, if a cord of wood cost 10 gallons of gas, lets say gas, that's a lot. at $4 per gallon the total cost of gas is $40, so add $40 to the cost of a cord of wood, don't add $100 or more and say it is because of the cost of gas.

I too have a lot of wood on my property, but I am limited mostly to white pine and red cedar. The hardwoods I have are so large I couldn't harvest without first hiring a tree service to take them down, even then they'd also have to "buck" the main trunk as that would take a 30"chain bar or longer, I estimate. Not sure what that would cost per cord, given I split, truck to the wood pile, and stack myself - I could also buck/cut the large branches myself, just not the main trunk. I, of course, really don't want to cut down those beautiful trees either. I guess if things get bad enough the I feel I have to take the big ones down, I'll need to stand armed watch to protect the wood pile.

you forget most trucks that wood guys have is diesel so 5.25 a gallon on something that might get 10 miles to a gallon when its not carrying weight
and then of course splitters etc... but remember in america everyone needs cash all of the wood guys cost are going up to (elec,gas , food, clothes) because of fuel and other things so they cannot survive off of last years profit when their living expenses have doubled like ours.. so add in the fuel charge plus the "raise " they need to pay todays bills
along with the fact that they are still the cheapest way to go and blam there ya go!

 

[savageactor7]

I have a friend down the road that a professional logger...it's better for him to chip 10-15 in logs for a co- energy plant than to mill them. He can't hire people to cut and split fire wood....I used to work for him 20 years ago. Me and a bunch of other Joes would cut and split wood for 3 hrs a night for $5 an hour plus a PU load of free tops for ourselvesf. Back then people wanted huge split pieces, if you delivered arm or thigh sized piece of unsplit wood ...they felt cheated at $30 a FC. Me... I was happy with wood I didn't have to split and $15 of untaxed income a night. Hey back then you could live large on that dough...even though it sounds kind of foolish now.

 

[Jerry_NJ]

Ya, I hear ya, that's what so insidious about inflation, every one in the cycle of trades puts in inflation plus a "little" margin, that comes around and around.... bigger bigger, higher and higher. This time the cost of fuel is the trigger/excuse.

Still, my 10 gallon argument could be other quantities, 15 gallons or more, now that's PER cord, not per trip, and I see much larger increases than would be the case if "I" paid the full, not incremental increase, cost of the fuel used. Doing so would, in effect, reduce the cost of fuel to zero, so take it out of the argument about how much the cost of the cord wood goes up. To say a doubling of the cost of fuel justifies doubling the cost of the cord of wood doesn't seem "fair" ... but if the market will bare it... charge what the market will bare, that's capitalism. The only protection, for all goods and services, for the consumer is competition. That too must be disappearing, or said another way, the supply-side is short of what the demand-side is willing to purchase/pay.

Happily for me, and for the time being, my electric costs for my geothermal heat pump system went up about 30% last winter, not 200% as may be the case for heating oil. I'd guess electric cost, including delivery, has gone up no more than 50% over the past 10 years.

 

[JustWood]

Fuel up. Housing down=mill closures.
Less logging and milling= less waste wood and tops in the woods.
Downturn in economy= less money in general publics pocket=less tree trimming.
Less wood on the market=higher price and bigger DEMAND.

Laws of supply and demand at its finest.

 

[iceman]

^^^^ very true
Jerry ...many firewood buy wood then split etc ..those guys are the ones whose prices usually go up drastically....
the average tree guy you can still get it reasonably as he doesn't have an added cost beside his fuel .. not his fuel and theirs
but i understand and agree with you bt as LESS-WOOD said best SUPPLY AND DEMAND AT ITS FINEST

 

[Jerry_NJ]

Got ya.... I understand that and will say "bull" when told the increase in cost is due to the cost of fuel... well some if the increase is due to the cost of fuel.

I have taken the cost of fuel in now into my decision process on going somewhere, e.g., when I think about going over to Walmart to walk around and maybe buy something. It is only a 12 mile round trip, but at 24 mpg it still cost me $2 in fuel just to look, so I stay home. If a million of us do that every day we've reduced the demand for fuel that day by 500,000 gallons. Even my wife is trying to reduce her trips to the grocery store. That said, these are only small savings, so our cost for gas has gone way....up!!

 

[iceman]

Got ya.... I understand that and will say "bull" when told the increase in cost is due to the cost of fuel... well some if the increase is due to the cost of fuel.

I have taken the cost of fuel in now into my decision process on going somewhere, e.g., when I think about going over to Walmart to walk around and maybe buy something. It is only a 12 mile round trip, but at 24 mpg it still cost me $2 in fuel just to look, so I stay home. If a million of us do that every day we've reduced the demand for fuel that day by 500,000 gallons. Even my wife is trying to reduce her trips to the grocery store. That said, these are only small savings, so our cost for gas has gone way....up!!

the honest guys charge you and then say plus$$ for fuel.. i respect those guys ... and those usually say if 10 miles or less free and so forth

 

[N/A N/A]

This week I called the guy that trucks in my wood for me. Asked for a tri-axle of logs and tops....He laughed at me. Said that if he could get the wood I would be around number twenty in line. I never remember it being anything like this. Thank god I do my own cutting and splitting as well. Just buy a little to help my back out. Guess I will be buying a heating pad insted. I think everybody in there brother is going to burn fire wood this year. Every fire place and wood stove in North America is going to be stoked up???

 

[JustWood]

This week I called the guy that trucks in my wood for me. Asked for a tri-axle of logs and tops....He laughed at me. Said that if he could get the wood I would be around number twenty in line. I never remember it being anything like this. Thank god I do my own cutting and splitting as well. Just buy a little to help my back out. Guess I will be buying a heating pad insted. I think everybody in there brother is going to burn fire wood this year. Every fire place and wood stove in North America is going to be stoked up???

I tried to tell everyone earlier in the year that wood , wood be in high demand (and pellets) this year AND at a premium price but I was shot (shoot the messenger). Now everyone is crying about high prices, including MY customers. It's a sellers market.

 

[N/A N/A]

This week I called the guy that trucks in my wood for me. Asked for a tri-axle of logs and tops....He laughed at me. Said that if he could get the wood I would be around number twenty in line. I never remember it being anything like this. Thank god I do my own cutting and splitting as well. Just buy a little to help my back out. Guess I will be buying a heating pad insted. I think everybody in there brother is going to burn fire wood this year. Every fire place and wood stove in North America is going to be stoked up???

I tried to tell everyone earlier in the year that wood , wood be in high demand (and pellets) this year AND at a premium price but I was shot (shoot the messenger). Now everyone is crying about high prices, including MY customers. It's a sellers market.

I guess your right. The wood is just like the gas. Not that ether one is becoming harder and harder to find.....They just will not put in anymore oil wells. So I guess that means we should stop growing trees too??? Good luck to all in there venture to find wood this year.