Rising shipping costs to hit log exports
LOG EXPORTERS FACE ANOTHER RISE IN SHIPPING COSTS beyond the current oil price surge.
Tony Spelman, Business Development Manager for Swire Shipping, told the 2018 DANA Forestry Conference in Taupo last month that the introduction of low sulphur fuel in 2020 will have an impact.
Ship owners will either need to switch over to the new, more environmentally-friendly fuel or introduce exhaust scrubbers to clean fumes from their older engines.
“That will inevitably flow through to the cost of shipping,” he says.
Still on the subject of shipping, the owners of the Port of Gisborne are progressing with plans to redevelop the site to cater for two ships, instead of one. Gisborne claims to be the most efficient log export port in New Zealand, handling three million tonnes per year.
The port is also looking to re-establish a wood chip export facility, make increasing use of coastal shipping to improve efficiency and is investigating the development of a barge port at Hicks Bay to cater to logs produced from the northern East Coast forests.