Peter Weir
Forestry crews across New Zealand have downed tools, as contractors close operations due to the Coronavirus. China is by far the largest and most important market for New Zealand’s export logs and by value New Zealand earns half its export income from China. Source: Timberbiz
It comes as Gisborne’s log exports to China ended due to exporters’ fears over the spread of the mysterious and deadly Coronavirus in China.
The vast majority of log exports from Gisborne go to China but Eastland Port operator Eastland Group say some exporters had halted exports to China.
The New Zealand Forest Owners Association says that the extended Lunar New Year public holiday makes it difficult to know what is going to happen when sawmills in China restart.
Association President Peter Weir says he understands that log ships continue to be unloaded, but he says we need to wait to determine what the offtake volume of logs might be after the traditional New Year break. There is industry concern that if the virus were to infect more people in coastal towns and cities then access to Chinese ports could be restricted with little warning.
The Coronavirus was declared a global health emergency by the World Health Organisation (WHO) at the end of January and countries around the world implemented safety precautions to stop it spreading. New Zealand has taken precautionary steps for those entering the country and Air New Zealand suspended direct flights from Auckland to China.
On Monday, all foreign travellers from China or transiting through were banned from entering New Zealand for up to two weeks. New Zealand citizens and permanent residents, and their immediate family members, would be allowed to enter the country, but would be required to isolate themselves for 14 days.
The coronavirus outbreak comes on top of new supplies of softwood into China, due to the salvage of insect and windstorm damaged spruce forests in Central and Eastern Europe. Warmer winters and longer summers have led to very high rates of spruce beetle infestation with large areas of forests being clear-felled and salvage logs railed and shipped to China.
In the coming year, exports of bushfire damaged pine logs from Australia also have the potential to increase the softwood supply to China.
The head of the Forest Industry Contractors’ Association confirmed the reports, saying that work was now being undertaken to gauge how many logging contractors are affected.
Chief executive Prue Younger said the cause of the shutdown was due primarily to the coronavirus but could not elaborate further.
“The fluctuating international markets have played a small part in it,” she said.
“But there has also been an acceleration due to the coronavirus and so we need to get to grips with how far that has got. We will know more later this evening.”
Ms Younger said they were still talking with contractors and could not give a timeline on when the shutdown would end.
“The rationale and complexity of what happened is still being understood,” she said.
Eastland Group chief operating officer Andrew Gaddum confirmed to The Gisborne Herald the South Korea-bound log-ship Naruto Strait, in port Monday, would be the last log ship to be loaded “until further notice.”
“This is a challenging time, globally and locally, and the impacts are now being felt across New Zealand and here in Tairawhiti,” Mr Gaddum said.
“Eastland Port is open and will continue to stay open. However, the flow of product is hugely reduced, as it is at ports around the country.
“The situation is evolving rapidly, as exporters respond to these unprecedented and incredibly challenging circumstances.
“As of Monday afternoon, we understand several companies in the region will soon temporarily stop all log exports.
“Several others are planning to keep sending product through Eastland Port, to markets including Korea.
“There may also be some product going to China, although at significantly reduced volumes. This will depend on the restrictions being placed on movement between China and New Zealand, which are being strictly adhered to.
“Eastland Port remains open, and we continue to work closely with our customers.”
There have been no reported cases of the Corona virus in New Zealand, however, several people have been tested. Scientists began locally testing for the virus late last week but prior to that samples were being sent to Australia.
