The Forest Products Association of Canada (FPAC) has welcomed the federal government’s latest announcement addressing structural transportation challenges affecting Canadian industries, including the forest products sector.

According to FPAC, transportation reliability and freight costs have become major obstacles to competitiveness for Canadian forest producers.

Transportation Costs Continue to Pressure Forest Producers

FPAC says the forest sector absorbs billions of dollars in freight costs annually, with rail transportation representing the largest share.

The association estimates:

• freight costs account for more than 15% of the sector’s GDP contribution
• transportation can represent up to 25% of delivered product costs

For forest companies exporting lumber, pulp, paper and packaging products, transportation performance directly affects international competitiveness.

Three Core Challenges Identified

FPAC highlighted three major structural problems across Canada’s transportation system:

• limited rail competition driving higher costs
• infrastructure bottlenecks in key trade corridors
• ongoing labour instability affecting reliability

The association argues that resolving these issues together is necessary to improve supply chain resilience and support long-term industrial growth.

Rural and Indigenous Communities Depend on Supply Chain Stability

The forest sector remains deeply tied to rural and Indigenous communities across Canada.

According to FPAC, transportation disruptions do not only affect exports. They also affect:

• domestic manufacturing
• mill operations
• employment stability
• investment decisions
• value-added production growth

Industry Insight

The issue highlights a broader challenge facing resource-based industries:

logistics and transportation are increasingly becoming strategic competitiveness factors rather than simple operational costs.

For pulp, paper and wood products producers, freight efficiency can directly influence:

• export margins
• customer reliability
• production planning
• global market access

Final Thought

FPAC’s response reflects growing concern that transportation inefficiencies are becoming a structural burden on Canada’s forest sector.

As global competition intensifies, improving rail reliability, reducing bottlenecks and lowering freight costs may become just as important as fibre supply and mill efficiency in determining long-term competitiveness.

Last Updated on 14/05/2026 by Jota Machinery