The forestry segment in the shipping industry is changing. There are many reasons for this, but the sourcing of more commodities and transport within Europe, the world’s growing use of recycled paper and cardboard, and market variables such as the exchange rate and fluctuating container rates have not helped matters.
Growing competition, overcapacity, decreased demand and falling freight rates are some of the challenges that shipping faces in this sector.
However, Wallenius Wilhelmsen, a global ro ro shipping and logistics company, remains confident that there is continuing viability in the sector for generalised ro ro carriers. Forest products transport is an important segment within Wallenius Wilhelmsen’s North Atlantic service, accounting for 13% of the company’s total North Atlantic to Europe eastbound trade revenue.
Significant force
“The company’s 40-year history in forestry shipping and its expertise in shipping a diverse range of forestry cargoes has made us a significant force in the market,” said Gary McCarthy, account manager for non-containerised cargoes and forestry in the UK.
Laminated beams are among the forestry commodities carried by Wallenius Wilhelmsen. On its eastbound ro ro service from North America into Europe, wood pulp is the largest forestry product carried, last year accounting for 140,000 tonnes shipped. These commodities require specialised handling to minimise damage.
Critical factors cited by forestry companies in the successful shipment of timber consignments are the ability of shipping companies to adhere to stringent quality control procedures while loading and unloading their product, and the safe stowage of their products on board. Wallenius Wilhelmsen’s timber vessels have large uninterrupted cargo decks and quarter stern ramps that give excellent access from the quayside to the ships’ ro ro holds.
Handling equipment is thoroughly checked and forklift drivers take care as to how the cargoes are stacked because of their susceptibility to end damage. Loading and discharging does not take place in heavy rain and storage sheds for timber products are also cleaned and waterproofed.
Increased competition
Despite increased breakbulk competition in the Atlantic forestry trade and container carriers penetrating the market because of depressed container rates, Wallenius Wilhelmsen is confident that its goal of building long-term partnerships with customers based on total transport solutions is the key to developing its forestry products business.
The company helps customers by working closely with railways, trucking firms and terminal operators on both sides of the Atlantic.
To remain competitive, Wallenius Wilhelmsen has rationalised its ports of calls in North America and Europe for forestry products. The company currently ships forestry goods from New Orleans, Louisiana; Savannah, Georgia; and St John, New Brunswick to three key European ports – Bristol, UK: Flushing, Holland: and Bremerhaven, Germany.
