Exporting Logs

[logbyr]

Native wolf

Correct about Atlantic but it's still one less mill producing logs.   
I'm sure Danzer is glad to have the slicing business.   They laid off 3 long term experienced log buyers last month, sold their timberland and have their sawmill in PA up for sale.    It's not good out there.
Danzer was the big dog in world veneer production for a long time
ITV in Mercer is in virus shut down and also not currently buying logs.   
We need a domestic industry here that is growing not shrinking.   It gives us leverage with the Chinese on our resources.  When they captured the furniture making market they drove the price of low end veneer produced here to production cost or below.     The domestic furniture industry did not bite the hands that fed them wood like that.  If they drive the US veneer mills all out log prices will suffer.
As for getting wood more in demand, i think the HGTV, DIY and home improvement shows are very influential in trend setting.    The " fixer upper" lady from TX was the big driver in painted cabinets.   Women who make most of the furniture and cabinet decisions love the shows.  
  The industry associations should be promoting shows that showcase natural domestic woods and their sustainability.   
Possibly get a little younger version of Norm Abrams doing house remodels showing off domestic wood products.  

[Wudman]

As for getting wood more in demand, i think the HGTV, DIY and home improvement shows are very influential in trend setting.    The " fixer upper" lady from TX was the big driver in painted cabinets.   Women who make most of the furniture and cabinet decisions love the shows.  
 The industry associations should be promoting shows that showcase natural domestic woods and their sustainability.  
Possibly get a little younger version of Norm Abrams doing house remodels showing off domestic wood products.  

A large sweet potato producer just south of me did that exact thing to get a foothold in the European Union.  Sweet potatoes were not a desired item in Europe.  He hired an established TV Chef that started promoting sweet potato dishes on his show.  They built a business around this marketing.  Maybe the talent on this board could start a YouTube marketing venture and rebuild the U.S. domestic market.  There is certainly plenty of talent here. 
Wudman

[Dom]

Years ago I worked with a fellow filling containers for the over seas market. From my understanding the company that was purchasing the logs would put the money in a bank here in the states and when the container was at the dock the money would be released to him.Loading containers isn't a bad job once you figure out what works. I creased a side of a container while pushing a log into the box and the container company charged use $1500.00 this is what the guy I worked for told me. My dad use to get on me about selling logs overseas but I asked him would you sell your corn for three bucks a bushel or ten bucks to a overseas buyer. Never did get a answer ;).

The process for payment sounds like a letter of credit. The U.S. has a different term which I don't recall at this moment. Essentially a contract is drawn and agreed by the buy and seller. The contract is represented to a bank, and that bank will provide a destination bank for the buyer. Not all banks work with one another. Once the shipment is received, the buyer will either approve or deny the shipment and communicate with their bank. If denied, pending on the contract, that can mean that the shipment is returned right away. If approved, the banks will transmit payment. 
If letters of credit are used for payment, its best to have pictures sent to the buyer and have them acknowledge that they will accept the shipment as long as it is the truthful shipment. 
With letters of credit, the seller can also protect the transaction by purchasing a insurance that payment is provided as soon as the container reaches the customer. The insurance is not pending whether the approval or denial of the customer.
We sold skidders to Chile in 2008 due to a lack of local market. 
Never had an issue with the letters of credit, but  a good contract and good documentation are required. If I were to buy or sell internationally with a unknown stakeholder the letter of credit is the only form of payment I would use.
I hear on the news of local businesses getting screwed up by foreign companies (and local) and often wonder what protective measures they took. If any.

[Southside]

Now you got logs on the yard, logs you have spoken for in woods and all your suppliers are mad at you as the local mills that wanted those logs all winter sincerely hope you enjoy the taste of eating what you can't sell.

Yup - there was an outfit exporting ERC last year to China, paying foolish money for the logs, so much that I could not buy them and make anything off of the lumber.  Have to admit I did grin when that short term game came to a screeching halt for them.  

[logbyr]

Most of the hardwood export log business is cash before shipment.   
US brokers and Chinese buyers all pretty much pay before possession is taken. 
In past some big shippers shipped on Letter of credit (LC) with Chinese banks.  These were proven worthless after the fumigation debacle  the Chinese threw at us 2 years ago.    This has forced more log producers to ship logs that are paid in full.    Unless u have trustworthy representation in asia never ship without payment.
I contract buy for a co in China.   Pay for logs before shipment then our people in China collect money after customers receive logs.   They know how things work there and who to trust.  I dont.  It's a very different culture.   Their moral compass doesn't operate like ours.
Claims are always an issue in asia.   They will always be an issue.   Best way to deal is to ship to spec and stand your ground when they complain.   They are born negotiators.   

[Dom]

Most of the hardwood export log business is cash before shipment.  
US brokers and Chinese buyers all pretty much pay before possession is taken.
In past some big shippers shipped on Letter of credit (LC) with Chinese banks.  These were proven worthless after the fumigation debacle  the Chinese threw at us 2 years ago.    This has forced more log producers to ship logs that are paid in full.    Unless u have trustworthy representation in asia never ship without payment.
I contract buy for a co in China.   Pay for logs before shipment then our people in China collect money after customers receive logs.   They know how things work there and who to trust.  I dont.  It's a very different culture.   Their moral compass doesn't operate like ours.
Claims are always an issue in asia.   They will always be an issue.   Best way to deal is to ship to spec and stand your ground when they complain.   They are born negotiators.  

Getting paid upfront is the best. In the end it comes to either the buying and selling power. Sounds like the sellers have good power, that's a good position to be in this case. 
The construction companies argue every contract in our area, maybe we should have them negotiate with Asia.  :D
Its dangerous when only dealing with a few customers. Strong negotiators tend to want to become the main customer,  and squeeze out profits afterwards.
I'm not a good negotiator or seller, so I try to reduce risks in another other ways I can. That sometimes mean selling a at lower profit, but guaranteed sale/payment.

[teakwood]

When i sell teak to an Hindu buyer it's money up front. we load the container in my yard, measuring volumes which decides  the price and then it's paying first, and just if the money is in my bank account the trucks leaves my land. If you let them go before you will never see a cent! 
 Well, actually i have ONE hindu buyer which pays me after the truck left, but that guy has never failed me, 1h later the money is deposited. but he is an exception, very trustworthy person.  

[Walnut Beast]

Talked to a guy that did quite a bit of container shipping several years ago and he said he had many sleepless nights with some big money on the line. Believe it or not he did quite a bit of Cottonwood years back besides Walnut 

[barbender]

I would think a guy could send lots of containers of cottonwood out without losing any sleep about it😁

[Walnut Beast]

Wasn't the logs it was all the variables and costs in the shipping 

[barbender]

I can believe that. I'm just ribbing ya, anyways. Even if I sent cottonwood logs out I'd want paid for them, they didn't get in the container for free.

[ehp]

I have seen cottonwood sawn into slabs for table tops and you know what , they didnot look to bad . Lots of big cottonwood here 

[ehp]

there was some shipping this winter but the logs had to be just about perfect and I mean perfect , white oak and walnut were the most common