Timber Industry Diesel Prices Surge: Loggers Warn of Impending Collapse

โ€˜Weโ€™re Dying Out Hereโ€™: Timber Industry Diesel Prices Threaten American Forestry Collapse

skyrocketing timber industry diesel prices are pushing logging operations across the country to the breaking point. As fuel expenses devour thin margins, industry leaders are raising alarms that without immediate government intervention, the nation’s supply chain for timber and paper products could grind to a halt. Speaking on FOX Business’ Varney & Co., Scott Dane, Executive Director of the American Loggers Council, delivered a stark assessment of the crisis facing independent loggers from Virginia to the Pacific Northwest.

Timber Industry Diesel Prices
As fuel expenses devour thin margins, industry leaders are raising alarms that without immediate government intervention, the nation’s supply chain for timber and paper products could grind to a halt. [REUTERS]

The Math Behind the Meltdown: Fuel Eats 45% of Costs

Logging is one of the most heavy-machinery-reliant sectors in the U.S. economy. From timber harvesters to heavy transport trucks, the entire process runs almost exclusively on diesel fuel.

“We’re in trouble. There’s no question about that,” Dane said, referencing a plea for help he received from a timber crew in Virginia. “To fill up a logging truck, you’re looking at $1,350 to fill the tank. Fuel costs used to be 25% of operating costs. Now they’re 40% to 45%, eroding any profitability within the timber industry.”

Making matters worse, loggers say they have no way to pass these rising fuel expenses down the line. Despite inflation hitting consumers across the board, pay rates for raw timber have remained largely flat for a decade, leaving contractors to absorb the entire price shock themselves.

Loggers Call for Federal Emergency Action

To avert widespread bankruptcies in the forestry sector, the American Loggers Council is urging the administration to deploy emergency economic measures:

  • Suspend Diesel Exports: Utilize executive emergency powers to keep domestically refined diesel within the U.S. supply chain to stabilize domestic supply.

  • Federal Fuel Tax Relief: Temporarily lift the federal diesel tax to instantly lower per-gallon costs at the pump.

  • Expand Refinery Capacity: Address long-term refining bottlenecks to keep commercial transport fuel affordable.

“It makes no sense to export fuel while domestic industries are drowning,” Dane urged. As timber industry diesel prices continue to squeeze operators, industry representatives argue that protecting timber workers isn’t just a regional issueโ€”it’s essential to keeping housing, paper, and shipping packaging affordable for all Americans.