The American logging industry is facing severe financial pressure due to surging diesel prices, according to Scott Dane, Executive Director of the American Loggers Council, who spoke on FOX Business' 'Varney & Co.' [1]. Dane highlighted that the industry's heavy reliance on diesel fuel for trucks and equipment has made the recent price increases particularly damaging, with the cost to fill a logging truck now reaching $1,350 [1]. He noted that fuel costs, which previously accounted for 25% of operating expenses, have risen to 40-45%, significantly eroding profitability within the timber sector [1].

Dane emphasized that the situation is exacerbated by stagnant prices for loggers, stating, 'We're getting paid no more today than we were getting paid 10 years ago, roughly speaking,' which limits the industry's ability to offset rising costs with increased revenue [1]. He relayed urgent concerns from loggers, including a recent message from Virginia describing the industry as 'dying' due to unsustainable fuel expenses [1].

In response to the crisis, the American Loggers Council has called on the administration to take immediate action, including suspending the federal diesel fuel tax and halting diesel exports under the Emergency Powers Act [1]. Dane argued that these measures are necessary to address what he described as an emergency threatening the 'complete collapse' of the timber industry [1].

No specific market reactions or analyst opinions were mentioned in the article, but the tone and data suggest significant distress and potential industry-wide ramifications if diesel prices remain elevated [1].

Conclusion
The U.S. timber industry is under acute financial strain due to soaring diesel prices, with profitability eroded and no relief from stagnant timber prices. Industry leaders are urgently calling for government intervention to prevent a potential collapse. The situation presents a high-impact risk to the sector if fuel costs are not addressed.

Industry seeks emergency relief
The council wants the administration to suspend the federal diesel tax and use emergency powers to halt U.S. diesel exports. Dane argued that the country faces an emergency and that domestic supply should take priority over sending diesel abroad.

Those measures could provide short-term relief, but they would also shift costs and potentially disrupt trade. A tax suspension reduces government revenue, while an export halt could affect refiners and overseas buyers without resolving the underlying global shortage.

The broader risk is a slow supply-chain contraction rather than a single dramatic shutdown. Each unprofitable route or parked truck reduces the industry's capacity. If that process continues, higher diesel prices will not remain a problem confined to logging companies; they will surface in mill utilization, material availability and the prices paid by builders and consumers.
 

Source: foxbusiness.com