NEWS

Experts predict that ocean shipping rates could double or triple due to the Russian invasion of Ukraine. Shipping rates could surge from $10,000 per forty-foot container to $30,000, while air freight rates might spike even higher.

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Russia's Ministry of Industry and Trade proposed introducing a ban on the export of birch wood, plywood logs, and fuel chips to "unfriendly countries" by the end of 2022.

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7seasgroupusa.com: Russia plans to ban on wood exports to U.S. and EU until the end of 2022

A recent analysis shows that powerful industry barons connected with President Vladimir Putin are behind Russia's largest logging companies and exporters of wood products. These oligarchs include Russia's richest man, a former member of Russia's lower house of parliament, and the owner of the Chelsea Football Club, Roman Abramovich.

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Ten percent of U.S. hardwood plywood in 2019 was directly supplied by Russia. Indirectly, Russia may account for 20% of U.S. hardwood plywood consumption, as plywood manufactured by major producers like Vietnam and Indonesia may use logs harvested in Russian forests. Furthermore, Russian plywood may use illegal timber and be subject to penalties under the Lacey Act.

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The U.S. House of Representatives passed legislation that would end normal trade relations with Russia. The result is that tariffs on Russian birch plywood would increase from zero to 40–50%. The Senate is likely to take action quickly, followed by President Biden signing the bill into law. Tariffs would go into effect immediately.

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