WEEK NEWS 27, FOMEX WOOD INDUSTRY NEWS

Vietnam Wood product hit a record high, Korea and Canada increase to import wood and wood products from Vietnam; Yantian Port is back to normal tomorrow, Hapag Lloyd will apply a Peak Season Surchage (PSS).

Exports of W&WP plus NTFP surged 62% year on year to reach a record high of over US$6.628 billion in the first 5 months of 2021 despite global supply chain disruptions.
Of this figure US$5.120 billion came from high value-added wooden furniture, up 80% against the same period last year.

Domestic producers have adapted well to the “new normal” by stepping up digital trade meetings and product promotion with foreign buyers in order to boost sales said Deputy Minister of Agriculture and Rural Development Ha Cong Tuan.

There is plenty of room for the global wood and furniture market to grow, said Bui Chinh Nghia, Vice Director-General of the Vietnam Forestry Administration under the Ministry of Agriculture and Rural Development.
Vietnam now makes up 9% of the global market he noted, stressing that with the current growth rate Vietnam will soon rise to the fourth or even third place among the world’s largest exporters of wood products.

According to several foreign importers, COVID-19- induced social distancing orders and travel restrictions have forced people in many countries to work from home triggering increased demand for home furniture.

Made-in-Vietnam furniture has been more and more favored by importers as producers have strictly complied with rules of origin. Insiders, however, warned that rising orders may cause trouble for Vietnamese producers as disruptions in the supply of material wood remain of concern.

Vietnam Wood Product exporting to Korea

According to data from the General Department of Customs, Vietnam's export turnover of wood and wood products to South Korea in the first five months of 2021 reached 369.2 million USD, up 7% over the same period in 2020.

Timber, exports and imports Exports to the Korean market accounted for the highest proportion in the structure of exported wood and wood products in the first 4 months of 2021, reaching $98 million, up 0.6% compared to the previous year the same period in 2020.

Followed by wooden furniture exported to the Korean market reached $ 87 million, up 16.9% over the same period in 2020; The important proportion of export wooden furniture accounts for 29.7% of the total export turnover of wood and wood products. Most of the items in the furniture structure saw an increase in turnover in the first 4 months of 2021. In which, the highest growth rate was the wooden frame chair, which reached 29.86 million USD, up 26.4 million USD, an increase of 26.4 million USD. % over the same period in 2020.

Wood chips are the third-largest export item in the structure of products and wood products exported to the Korean market, reaching 19.23 million USD, down 8.4% over the same period in 2020.

Vietnam Wood product exporting to Canada

Vietnam Wood product exporting to Canada

In the first 5 months of 2021, the export turnover of wood and wood products to the Canadian market reached 104.3 million US dollars, up 69.3% over the same period in 2020. Specifically, from 5/5/2021 Canada Border Services Agency (CBSA), decided to impose temporary anti-dumping and countervailing duties on upholstered seats from China and Vietnam.

For Vietnam, in addition to 7 foreign-invested enterprises in Vietnam, which are subject to dumping and subsidies from Canada with upholstered seats from 17.44% to 89.77%, all companies The remaining companies when exporting this item to Canada are subject to a tax rate of 101.5%.

US import Tropical Hardwood from Vietnam Fomex Group

US import Tropical Hardwood from Vietnam Fomex Group

After a strong recovery in March, US imports of sawn tropical hardwood held steady in April, falling a modest 2% from March. At 9,457 cubic metres, volume is only slightly more than half that of last April, which saw a spike early in the pandemic.

Additionally, last April’s numbers counted ipe and jatoba imports, which are no longer included in the totals from the beginning of 2021.

Imports from Congo (Brazzaville) were down 66%, while imports from Ecuador and Brazil fell 11% and 16%, respectively. Imports this year from Brazil, by far the largest supplier of sawn tropical hardwood to the US in 2020, are down 83% year to date through the first four months of 2021.

However, there is no single species that is significantly down in volume. Teak imports fell by 77% in April and are behind 24% year to date, yet cedro fell 21% in April but is up 67% year to date, and acajou d’Afrique imports are ahead 22% year to date despite falling 22%.

While overall year to date imports are technically down 42% through April, nearly all of that loss is due to the adjusted statistics. If ipe and jatoba imports are included then US imports of sawn tropical hardwood are actually up 3% year to date through April.

Meanwhile, Canadian imports of sawn tropical hardwood soared in April, gaining 79% over March to mark the strongest month since October 2019. Thanks to the strong monthly numbers, imports for the year to date climbed virtually even with 2020 totals after a weak first quarter.

Imports of mahogany rose 20% and imports of iroko rose 30%, while imports of virola, imbuia and balsa more than doubled. Imports from Congo (Brazzaville), the Democratic Republic of Congo, Cameroon, and Ghana were all up sharply.

Yantian Port Fomex Group

Yantian International Container Terminal (YICT) says it will return to normal operations tomorrow, following weeks of disruption caused by an outbreak of Covid-19 among dockers at the port.

Operations fell to around 20% of capacity as the virus spread through the YICT workforce, causing delays and congestion at ports across the Pearl River Delta, as desperate carriers looked for alternative facilities to maintain the flow of cargo.

Hutchison Ports, which operates YICT, today announced it had “taken proactive measures to steadily resume normal terminal operations”
It added: “Currently, Covid-19 has been effectively under control in the port area, and the operational capacity of the terminals has steadily recovered.”

The company added that at midnight local time, all berths (including the West Port area) would essentially resume normal operations and that the number of laden gate-in tractors would be increased to 9,000 a day, while the pick-up of empty containers and loaded import boxes remained at normal levels.

Arrangements for the acceptance of export containers will return to normal levels of within seven days of the vessel’s ETA.

Hutchison added that “Yantian will continue to strictly implement epidemic prevention, control measures and promote products in a safe and orderly manner.”

However, the backlog of containers stranded at the port could take weeks to clear as more cargo arrives to feed demand in both the US and Europe.

Fomex Group News 27

Hapag-Lloyd will apply a Peak Season Surcharge (PSS) to all dry, refrigerated, open top (*) and flat rack (**) containers from East Asia to the US and Canada.

The PSS surcharge rates from East Asia to North America (the USA and Canada) are as follows:
1000 USD for all kinds of 20' container
2000 USD for all kinds of40' container

East Asia region is defined as the countries/counties of Japan, Korea, China/Taiwan, China/Hong Kong, China (Mainland), China/Macau, Vietnam, Laos, Cambodia, Thailand, Myanmar, Malaysia, Singapore, Brunei, Indonesia, Philippines and the Pacific coastal provinces of Russia.

FOMEX GROUP