​FORESTRY CARGO BEGINS TO FLOW

The complex operations of forestry were rushed into lockdown at the commencement of alert level 4 in New Zealand.  With little time to adapt, the industry faced cargo jams and logs were having to be left at the site of harvest in many instances.  With log export operations restricted during Level 4 Nelson saw only two vessels call at the port.
 
The move to alert level 3 is welcome relief to the industry and log ports across the country. Over the past week Port Nelson has seen significant volumes of logs arriving through port gates.
 
At the end of alert level 4, the Nelson log yard was nearly empty with only 8,500 JAS in storage, but this has since ramped up over the first week of alert level 3, with cart-ins peaking on Thursday at 6500 JAS. These volumes are expected to remain strong as log export customers continue to move stock that had been stored at harvest sites.
 
Stevedoring staff in Picton have since part loaded two log vessels that are calling at forestry ports across New Zealand before heading to market destinations.  Nelson exporters are eagerly awaiting the return of log vessels, with the first due this weekend and another two calls during early May.
 
The strengthening New Zealand Dollar and high log sale price combined with lowered freights rates are also positive news for exporters who hope to make gains after a month of next to no earnings.   Log rates are expected to remain favourable and return to pre-COVID pricing over the course of the month.
 
With a further easing of restrictions under alert level 2 and the opening of the Chinese market there is a sense hope in the forestry industry for continued favourable conditions and recovery of the levels of trade, though stricter hygiene and safety measures  are expected to be maintained for the foreseeable future.