b'24American Journal ofTransportation ajot.comACL AJOT_SailSchedule_2020_ACL2/27/209:33 AMPage 1(CONFLICTEDcontinuedherefromforeignbuyersforONE SHIPfrom page 23) andpaperheating pellets isnt common,ONE SHIPflooring,paperAdding, This year that isnt productsandplywood,howthe only demand variable that willChinareplaceRussianour members are eyeing. Heat-sourcing?Nodoubt,Chinaing oil and propane prices are will look to known suppliershigh, and we know this leadsC ontainers, RORO, RORO, Br, Breakbulk Ceakbulk CarargogoContainerslikeCanada,NewZealandtotheincreaseduseofthe and Latin American and Afri- wood pellets with consumers can sourcing. And for purelywho have both oil and pellet domesticuse,Chinesepro- appliances in their homes. cessors might simply ignoreAnotherboostforthe thesanctionsandlabelingwoodpelletindustryinthe issuesandusealternativeU.S. came in the form of the payment systems.inclusionofanextensionof But a larger issue loomingtheresidentialtaxcreditfor is how will Western customqualifyingwoodandwood officialshandletheenforce- pelletheatingappliancesin ment of potentially Russian ortheInflationReductionActRORO Customer ServiceBelarussiansourcedlumberof2022,signedintolawbyA SERVICE AL1 SERVICE AL2 SERVICE 877-918-7676usedinmanufacturedwoodPresidentJoeBiden.TheCuto Friday Cuto Thursday Cuto Monday Export Customer Serviceproductsbythirdorfourthbillincludes$430billioninFROM NEW YORK LOLO RORO LOLO LOLO 800-225-1235TO Transit Time Transit Time Transit Time Transit Timeparties?TheuseofRussianinvestmentsinhealthcareANTWERP 1620 18Export Documentation 888-802-0401birchinflooringandotherandcleanenergypriorities,DUBLIN 12Import Customer Servicespecialty products will forceincluding a 10-year extensionBELFAST 13888-802-0403global manufacturers to findof the residential tax credit onGTEBORG 21LogisticsHAMBURG 13 17 15 22alternatives tokeepupwithqualifyingwoodandwoodLE HAVRE17 866-821-7449demand.Andthereslittlepelletappliances.QualifyingLIVERPOOL 9 13 Credit & Collectionsdoubttheconflictlumberappliances installed in a resi- LONDON GATEWAY20 19 888-225-7747issue is going to complicatedence on or after Jan. 1, 2023,ROTTERDAM11 20the outlook for global lumberwillgenerateataxcreditof trade for years to come 30% of the cost of the appli-anceandinstallation.Ato being intra-European. With $2,000limitwasintroducedboth Russia and Belarus, now (DEMANDcontinuedto the tax credit, a stipulationon the sidelines, North Ameri-from page 23) notincludedwhenthetaxcan pellets are again an attrac-PFIissuedareleaseurgingcredit was first established intive solution.[U.S.]consumerstoplananomnibusspendingpack- In 2021 South Korea and aheadastheglobalpelletagesignedintolawbythenJapan are the worlds second market works to fill a signifi- PresidentDonaldTrumpinand fourth largest wood pellet cant supply hole created by theDecember 2020. A tax creditimporters. According to For-Russian invasion of Ukraine. forqualifyingappliancesest2Market,Bothcountries ButtheRussianinva- deployedincommercialset- import needs have risen sub-sion of Ukraine isnt the onlytings was not included in thestantiallyfrompractically reason for the uptick in woodinitial legislation.nodemandtenyearsagoto pelletdemand.Withnatural6.5milliontonsforthetwo gas, electric and propane priceG LobaLs aLes countries combined in 2021. all rising wood pellets are anWhile the Russia-UkraineAlthoughbothJapanand attractive alternative or supple- Warhassparkedanuncom- South Korea began with North mentaryfuelbothdomesti- mondemand,theseedsofAmerican suppliersCanada cally and abroad. Additionally,apelletsurgewerealreadythandoublingfrom2012toNorth America initially fueledbeingthemajorsourcea around the globe in countriesplanted. An April Forest2Mar- 2021, when it reached over 11Europes pellet demand. Butnew Asian-based pellet source like Japan and in Europe, moreketnewsletter,reportedthatmillion tons. inrecentyearsasinvest- is coming on strong. Vietnam industrialsizedpowerplantsthetotalglobalwoodpelletAs the newsletter reportedmentsinfacilitiesin Latvia,has now become a major pellet are coming online using woodtrade in 2021 was up 9% YoYEuropehasbeenthelargestRussia,Estonia,andBelarussupplier in Asia. And in 2021, pellets as a hedge against pricesto 29 million tons, 50% highermarket for a decade with net(also included in sanctions withwasrankedastheworlds increases and fuel shortages. than in 2017. Europe has beenimportsmorethandoublingRussia)sparkedwoodpelletsecond-largestexporter.Vir-AsPortzexplains,Thethe largest market for the pastfrom 2012 to 2021, when itproductionatalowerdeliv- tually, all of Vietnams pellet demandcurrentlybeingfeltdecade, with net imports morereached over 11 million tons.ered cost, and exports shiftedexports(3.8milliontonsin 2021)aresenttoJapanand South Korea.The pellet shortage is also nearly certain to cause shifts in energy sources. For exam-ple, in 2021 Russia exported morethan870,000MTto Denmark for use in their com-bined-heat-and-power(CHP) plants.Orsted,whichoper-ates three CHP plants that use wood pellets as fuel is depen-dentontheRussianpellets topowertheplants.Inan article in the Financial Times in April,OrstedCEOMads Nippersaidtheplantswere likely to use coal instead later in the year to offset the loss of wood pellets from Russia.With demand rising, invest-mentinwoodpelletsseems destinedtoincreaseaswell. Enviva,thelargestexport woodpelletproducerinthe U.S,announcedplansto doubleitswoodpelletpro-duction capacity over the next fiveyears,from6.2million tons a year to approximately 13 million tons annually.'