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War on Wind Strands Workers at Sea; Lumber Prices Plummeting

By Liz Young | WSJ Logistics Report

 

The Revolution Wind construction site in Providence, R.I. PHOTO: ADAM GLANZMAN/BLOOMBERG

President Trump’s war on wind has left one construction crew stuck 15 miles out at sea.

The Bureau of Ocean Energy Management recently halted work on the $5 billion Revolution Wind project that is set to provide enough power for 350,000 homes in Rhode Island and Connecticut starting next year.

The WSJ’s David Uberti and Jennifer Hiller write that workers on the ECO Edison off the coast of Rhode Island who are used to 12-hour shifts seven days a week are now left wondering if they will be allowed to finish the job.

The struggles that led offshore wind to this moment of crisis predate Trump. President Joe Biden’s climate law showered the sector with subsidies, but inflation sent costs skyrocketing. Governments up and down the East Coast competed for investment in ports and factories promising blue-collar jobs. Supply chains couldn’t keep up. Local opposition busted project timelines. Some developers pulled out.

Still, the Trump administration’s stop-work order surprised even the shellshocked clean-energy sector because the development’s skyscraper-sized turbines are largely complete.

A small army of workers and suppliers on the East Coast and elsewhere are now racked by the possibility that a new industry for which they spent years preparing could disappear.

 
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Commodities

A loader moving past cut logs outside a sawmill facility in Canada. PHOTO: REUTERS/MATT MILLS MCKNIGHT/FILE PHOTO

Lumber prices are flashing a warning sign for the U.S. economy.

Wood markets have been whipsawed of late by trade uncertainty and a deteriorating housing market. Futures have dropped roughly 25% since hitting a three-year high at the beginning of August.

The WSJ’s Ryan Dezember reports that the price drop might have been greater but two of North America’s biggest sawyers said last week that they would curtail output, slowing the decline.

The crashing prices are troubling because the measure has been a reliable leading indicator on the direction of the housing market as well as broader economic activity.

During the Covid-19 lockdown, two-by-four prices nearly tripled the prepandemic record, an early sign of the inflation and broken supply chains that would bedevil the economic reopening. When the Federal Reserve began raising interest rates in 2022 to curb inflation, lumber was among the first assets to decline in value. Now, prices are signaling caution again.

 
 

Quotable

“I was going to lose money because tariffs happen, or I was going to lose money because there were no tariffs. It was 50/50 either way. So, I sat on my hands.”

— Stinson Dean, co-founder of Indiana truss manufacturer Revol Building Solutions
 
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Number of the Day

4.4%

The amount by which Chinese exports grew year-over-year in August, down from a 7.2% increase in July, according to the country’s General Administration of Customs.

 

In Other News

Payrolls continued to fall across the U.S. last month, according to a monthly index by the Conference Board. (WSJ)

German industrial production rebounded in July despite a further plunge in exports to the U.S. (WSJ)

Anglo American and Teck Resources agreed to merge in a deal that will create one of the world’s largest copper producers. (WSJ)

A Houthi drone strike temporarily closed a passenger terminal of Ramon Airport in Israel. (WSJ)

Volkswagen plans to launch a range of small electric cars next year. (WSJ)

Postal traffic into the U.S. plunged by more than 80% after the Trump administration ended the de minimis tariff exemption. (Associated Press)

Less-than-truckload carrier Old Dominion Freight Line’s revenue per day fell 4.8% in August on an annual basis. (Logistics Management)

Third-party logistics provider Logistics Plus acquired freight brokerage LoadDelivered Logistics. (Transport Topics)

Logistics giant DP World will operate a new terminal near Montreal. (Bloomberg)

Blackstone won a monthslong battle to take over Warehouse REIT in a deal valued at about $663 million. (Financial Times)

 

About Us

Mark R. Long is editor of WSJ Logistics Report. Reach him at mark.long@wsj.com.

Follow the WSJ Logistics Report team on LinkedIn: Mark R. Long, Liz Young and Paul Berger.

 
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