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As a responsible partner TP delivers to clients, employees and the industries we serve the confidence to drive value through the effective use of our diverse professional team.
As a responsible partner TP delivers to clients, employees and the industries we serve the confidence to drive value through the effective use of our diverse professional team.
Southern Pine Prices Spike in June
Just as quickly as southern yellow pine (SYP) lumber prices spiked to a new record high of $576/MBF in early June, they retreated in week 24. Forest2Market’s composite southern yellow pine lumber price for the week ending June 15 was $553/MBF, which is still an extremely high price compared to recent history. Week 24’s drop represents a 4% decrease from the previous week’s all-time high of $576/MBF, and a 44% increase from the same week in 2017.
Orders surged in week 24 to levels not seen since early May. Shipments tailed off compared to the previous week, but should rebound in the coming weeks to account for the increase in orders. While week 24’s price drop was most likely driven by lower orders from a week ago, continued price volatility will be the norm as order/shipment parity seems elusive in the near term.
A closer look at some of the prices we have seen since the beginning of the year:
Courtesy of John Greene, Forest2Market
No man is above the law and no man is below it: nor do we ask any man's permission when we ask him to obey it.
Theodore Roosevelt
Bark still poses a major challenge to many facilities. This is due to lower grades being utilized and the difficulties of maintaining a trained workforce. As an agency, we fully understand and appreciate these problems, however facilities are still required to meet bark conformance on any wood packaging material receiving their IPPC mark. Make sure to utilize TP's online training modules routinely to ensure all employees involved with ISPM 15 bark conformance have a full understanding of what is required. This can be found by clicking the link below:
https://www.tpinspection.com/auditing-services/export-wood-packaging/wpm-training-resources.
Your inspector is also a valuable resource in this area so make sure to ask questions if any area regarding bark needs clarification. This is a major area of concern for ALSC and your diligence in addressing this issue is appreciated.
When combining or adding on to non IPPC stamped WPM the added WPM cannot be stamped unless the non IPPC WPM in question is heat treated and stamped by the facility.
To help better explain this please refer to the below scenarios.
Scenario: IPPC stamped pallets from an outside source are brought in and have a box added to the pallet by the facility. Either the box MUST be IPPC stamped by the facility or the stamps must be obliterated on the pallet.
Scenario: Non-stamped pallets are brought from an outside source and have a box added to the pallet by the facility. The box CANNOT be IPPC stamped by the facility since the pallet was not certified (stamped) by the original supplier.
Scenario: IPPC stamped pallets from an outside source are brought in and two boards are added to the pallet to stabilize the product loaded onto them. Either the pieces added must receive the facility's IPPC mark or the IPPC mark on the pallets must be obliterated. Where there are multiple but individual add-on pieces that are not connected in any way, a single mark on one piece on opposite sides of the WPM is sufficient to identify all individual add-on pieces as a unit of add-on WPM. Each piece does not have to be marked. However, in sensitive areas more markings are recommended.
Scenario: Non-stamped pallets are brought in from an outside source and an IPPC marked crate is set on the pallet for shipment and is shrink wrapped or strapped down and not attached to the pallet. The IPPC marked box cannot ship on non-IPPC wood packaging as ALSC considers this mixing of marked and non-marked products.
NOTES:
Remember, there must be consistency when adding wood packaging to other wood packaging. Either all related WPM must be properly marked or all IPPC marks must be obliterated. This is what is required for conformance.