Softwood lumber exports to US fall 20 in March amid railway woes

MONTREAL — Softwood lumber exports from British Columbia to the United States plunged 20 per cent in March from a year ago, the federal government said, amid railway transportation problems.Global Affairs Canada said in its monthly report that the country’s largest lumber-producing province exported 514.4 million board feet to the United States last month, down from 644.7 million board feet a year ago.“Output from the B.C. Interior remains depressed due to shipping constraints,” Hamir Patel of CIBC World Markets wrote in a report.First-quarter shipments from the B.C. Interior, which account for more than 90 per cent of B.C.’s lumber exports, were 18 per cent weaker than a year ago, largely due to transportation issues. B.C. Coastal shipments were 36 per cent lower.Total Canadian shipments in the first three months were down 17.4 per cent, but up two per cent from February to March.Shipments from Quebec — Canada’s second-largest forestry producing region — were down 16.6 per cent in the first quarter and Ontario was 8.6 per cent lower. Alberta was down 28 per cent while the Maritimes were nearly five per cent higher.Canadian National Railway and Canadian Pacific Railway say western Canadian routes were more affected by cold winter weather and unexpected volume increases that slowed traffic.Paul Quinn of RBC Capital Markets said transportation shortages were at the forefront of a recent Montreal wood convention.“Canadian railway and trucking officials in attendance pledged that improvements were expected soon, but … two weeks since the convention most traders report that rail service in Western Canada remains poor,” he wrote in a report.Shipments from B.C. have represented 47 per cent of U.S. imports from Canada so far in 2018, below the 48 per cent in 2017 and the 10-year average of 54 per cent.Patel said nearly 60 per cent of B.C. export volumes went to the U.S. in February, down from 68.4 per cent in January.B.C. exports to China have been decreasing annually since 2013 and are running 22 per cent lower for the year after falling 27 per cent in February.Shipments to Japan are up marginally.The slide in export volumes comes as western SPF (spruce, pine, fir) lumber prices ended last week at near record highs of US$540 per thousand board feet.“Transportation issues gave mills the upper hand, as two-by-four quotes increased by US$20-$30 per thousand board feet, pushing prices to $540 ($2 below record highs from early March),” Patel added.The price of lumber has surged to cover the softwood lumber duties applied by the United States government.Follow @RossMarowits on Twitter.Companies in this story: (TSX:CNR, TSX:CP) read more

Worst case scenarios could become reality without more funding for El Niño

With 60 million people across the world affected by droughts, floods and other extreme weather events triggered by El Niño, the top United Nations relief official today called on the international community to act now to address urgent humanitarian needs and support building communities’ resilience to future shocks.“I am here to sound the alarm. Again. We must act today to help people whose entire way of life and survival is threatened,” Stephen O’Brien, the UN Under-Secretary-General for Humanitarian Affairs and Emergency Relief Coordinator, said in Geneva during a conference on responding to El Niño. “We are here today to make a global call for support and action. Sixty million people already require our urgent assistance today, tonight, tomorrow. Together we can avert the crisis from worsening. But the longer we wait, the longer and more costly our response will need to be,” continued Mr. O’Brien, underscoring that inaction also risked undermining decades of investments to development. As a reminder, and to put that into perspective, he recalled that the El Niño of 1997-98 killed around 21,000 people and caused damage to infrastructure worth $36 billion.“In this crisis we are not held back by political barriers, violent attacks or major access challenges. We must respond quickly to immediate, life-threatening needs, but we must also help people to become more self-reliant, and build individual and community capacity to respond to future shocks,” he stressed.According to the UN, the current El Niño is one of the strongest on record affecting an estimated 60 million people including some of the most vulnerable in Africa, Asia, Central and South America and the Pacific. The impact of El Niño-induced droughts is picking up in late 2016 and early 2017, and the situation could become even worse if a La Niña event – which often follows an El Niño – strikes towards the end of this year.“El Niño has already severely affected the health and food security of so many families and communities across the world. I am deeply worried about rising acute malnutrition among children under five and the increase in water- and vector-borne diseases. People urgently need food, nutrition, water, sanitation and hygiene as well as health services,” Mr. O’Brien added.Over the past months, UN agencies, governments, non-governmental organizations (NGOs) and other relief partners have stepped up El Niño-related preparedness and response work. The UN Office for the Coordination of Humanitarian Affairs (OCHA) indicated that response plans have been completed in 13 countries, requesting some $3.6 billion to meet critical needs for food and agricultural support, as well as nutrition, health and emergency water and sanitation needs. But OCHA says the funding gap for the combined global El Niño-related response stands at over $2.2 billion. As some countries have not yet finalized their humanitarian response plans, this figure is expected to rise. In Somaliland and Puntland, close to two million people are affected by the drought amid the El Niño phenomenon. WFP/Petterik Wiggers UN Assistant Secretary-General and UNDP Assistant Administrator, Izumi Nakamitsu, said it is critical to invest now to help ensure vulnerable communities can cope better with the next El Niño or other crises.“This shows again the importance of humanitarian and development agencies working together to support national and local governments during crises, to identify the risks for future disasters and build resilience. We can predict most crises, which gives us an opportunity to invest in prevention, preparedness and disaster risk reduction to reduce or end humanitarian need,” Ms. Nakamitsu said.Mr. O’Brien added that the World Humanitarian Summit, to be convened by the UN Secretary-General in Istanbul in a month’s time, on 23 and 24 May, provides a critical opportunity for the international community to change the way it manages climatic risks, including future El Niño and La Niña events. read more