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www.fdmasia.com | FDM AsiA Jan/Feb 2024

2024 WILL BE BETTER

By Michael Hermens, Founder & Group Managing Director of APP Timber, a solution-providing
company for over 25 years, specialising in imported certifed timber and wood-based materials.

he past year, 2023, was tough for our industry, especially may be a total ban on harvesting natural-grown tropical timber
for our Asian customers who faced challenges with within the next 10 years.
Tlow export orders, particularly at the start of the year. On a positive note, the demand for wooden garden
On a brighter note, orders from the US for goods made products is increasing due to global warming.
in Southeast Asia have slightly increased. This is due to lower Indonesia and Vietnam are expected to experience the
stocks held by US furniture retailers. We are hopeful that highest growth in the production and export of wooden furniture

things will improve in the coming year. and other wooden exports. India, and possibly Bangladesh,
There is an expectation that the US Federal Reserve will will also become important players.
reduce interest rates, leading to increased housing growth Although China remains signifcant, domestic economic
and a higher demand for timber products. issues and political restrictions may reduce the manufacturing
Although Europe is currently experiencing economic of lower-value yet labour-intensive wood products.
standstill, there is hope that some European countries will The sea freight reached pre-Covid-19 levels late last year,
also cut interest rates, resulting in an increased interest in but the recent Red Sea security issues has led to a three-
timber products. fold increase and, it seems, higher rates are to be expected.
However, political instability in countries like Germany and The alternative route around Africa last longer and more

the Netherlands may affect economic growth. vessels are required. Seems that the liners are yet again
Last year marked the warmest on record, about 1.5 taking full advantage of any possible reason to increase rates
degrees C warmer than any previous year. This has led to a to totally unjustifable levels.
growing demand for climate control, putting more pressure In conclusion, 2024 will present its own set of challenges,
on global forestry practices. but we are optimistic and expect it to be a much better year
The demand for plantation resources continues to rise, compared to 2023. FDM
impacting natural tropical timber. It is anticipated that there ENQUIRY NO. 1002