What is going on with wood prices right now

[Jameshow]

Are you guys aware that apparently, a cargo ship with 300 containers of wood was diverted 24 hours out from Felixstowe to the US by the owners last week, after they got a much better off from importers there. The original destination for the timber was here. An importer friend of mine was telling me the other day

No contract that was broken?

Cheers James

 

[Droogs]

Dunno , was told in passing during a phone call conversation

 

[Daniel2]

I believe, with these sort of cargos, there is no contract, as such.
Up until delivery, it's available to the highest bidder.
I may be wrong, it has been known.

 

[sometimewoodworker]

It’s all earmarked for work I’ve agreed to do so no I won’t be robbing my customers, more fool me aye

Your case and others in a similar situation are in a very different business than the wood yards. As you will, assuming normal practice, have quoted for a piece based on a price of material + usual other costs, got a deposit that will cover material and immediately purchased your raw stock.
So for the next piece, if raw material has gone up your price will have to go up unless the material costs are a small fraction of the final price.
If you are buying wood for items that are not yet commissioned then you need to add in the storage, financing and replacement costs to be practical.

Edit. If you do non commissioned work and have stock items. Then you will either have to price on current material costs or price in a large profit margin so you can ignore large jumps in raw material costs.

 

[RobinBHM]

selling price today is based on the replacement cost of products not the buying cost of the stock

that is interesting -not something I had considered

Clearly the business model of distributors is quite different from manufacturers.

 

[TheTiddles]

Just carry on, we in the woodwork industry are in a boom, make the most of it.

Come on Bob, get with the programme, why post something unless it’s a moan?

You must know the form by now, but here’s a pro forma if it helps…

This is terrible/awful/the worst thing that’s ever happen in my life.

I remember back in the day (which could have been last week) you could buy “insert huge quantity” for “insert small price”, I have no idea what’s happening but I heard “insert at least 3rd hand testimony” so that explains it.

Maybe offer up a straw-man argument as to why supply and demand and commercial economics isn’t the obvious cause?

Do it Bob, you know you want to!