Canada’s Forestry Industry Reducing Operations due to Supply Chain Challenges

Many of Western Canada’s lumber and pulp companies are slowing down production and exports because of rail, marine, and trucking backlogs. Industry leaders are concerned this is damaging Canada’s reputation as a forest products exporter.

According to Inside Logistics, Canfor has reduced operating schedules at 11 sawmills, West Fraser switched to a three-day workweek, and Alberta Pacific announced unexpected downtime at its pulp mill. One of the main issues is a lack of rail cars. Trucking has been a temporary solution, but there is also a truck driver shortage in Canada. B.C.’s highways are still impacted by last year’s floods, causing delivery delays. On top of that, there is a lack of warehouse space. Vancouver Fraser Port Authority reported that in 2021, exports of lumber products declined by 14% while exports in wood pulp fell by 20%.

Source:
1. Forest sector hit by supply chain challenges, Inside Logistics, April 12, 2022. Accessed April 18, 2022.