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Cost of shipping fails to nip forest products sector growth in the bud.
(From Lloyds List)
Byline: John Zarocostas in Geneva
BUOYED by record housing starts in the US and strong import demand by China and Japan, the forest products markets rose to new records in 2003 and is projected to continue on a positive trend, according to a report by a specialised UN agency.
The globalisation of the sawn softwood sector 'continues as we ride the crest of a wave, characterised by generally positive markets worldwide', concludes the report.
However, the report says that shipping costs for forest products 'have risen dramatically in the last year'.
The Forest Products Annual Market Review: 2003-2004, by the 55 member country UN Economic Commission for Europe (ECE), says the economic upturn, especially in Asia and the US, has 'created a shortage of shipping space in containers, on railcars and on vessels'.
As a result, 'freight rates for tropical hardwood timber imports from Asia to Europe increased by 80% during the first half of 2004', it notes.
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