Higher diesel, shipping costs pile pressure on New Zealand logging industry

New Zealand’s logging industry is facing a sharp cost squeeze as higher diesel prices and rising ocean freight rates, linked to tensions around Iran, disrupt what had been an otherwise positive start to 2026. The sudden escalation in fuel costs has materially altered operating conditions within weeks. Freight rates for log shipments from South Island ports to China have climbed from around US$30–33 per JAS m3 in February–March to US$42–45 per JAS m3 for April, driven primarily by higher bunker fuel costs and increased risk premiums on shipping routes. The increase of ...