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Pacific Basin seen gaining from China log imports

Pacific Basin seen gaining from China log imports
Hong Kong: Chinese demand for logs is benefitting shipping companies with the right kind of vessels to take advantage of the demand, according to a news wire report. The demand is being driven by a combination of Chinese demand for homes, New Zealand’s abundant pine forests and a Russian tax.  

New Zealand sold 8.6m cu m of logs to China last year, more than tripling its market share to 23% in four years, as Russia imposed a log export tax of as high as 25%. Russian logs exports, sent to China by rail, fell to about 30% from 63% in 2008.

Pacific Basin has boosted the number of ships in its fleet that are log-fitted by 56% in the past five years from 36 to 56 vessels, according to the report. Timber and other forest products accounted for 15% of the smaller-size dry bulk cargo specialist's cargo loads last year, the biggest after grains.

Meanwhile dry bulk competitors such as Cosco Shipping plans to start services to New Zealand from China to join the trade in the near term, company officials were quoted as saying. The carrier’s 13 ships are currently hauling hardwood, used to make furniture, from Africa to China, but supplies of New Zealand logs are considered more sustainable than those from Africa.  Apart from Pacific Basin's well-established operations, STX Pan Ocean also operates vessels on the China-New Zealand log trade.