Soaring diesel costs have Northeast’s loggers running on fumes | Opinion

Diesel Prices Push Maine Logging Companies Toward the Brink

By [Your Name], Maine News Now

In late September, diesel prices in the United States jumped past $6.50 a gallon, with rates even higher across much of the Northeast. The increase—roughly $3 per gallon over the January average—has put a sudden, heavy financial strain on the region’s logging and forest‑truck operators, many of whom were already struggling to keep their businesses afloat.

The Professional Logging Contractors of the Northeast (PLC) estimates that harvesting a single ton of timber consumes about 2.1 gallons of diesel. A typical 30‑ton truckload requires around 63 gallons to harvest the lumber and an additional 24 gallons to return the load to a mill on an average 100‑mile round‑trip journey. That totals roughly 87 gallons of fuel per load.

When diesel prices were at January levels, the fuel cost for a single load was about $306. Today the same haul costs roughly $567, an increase of $261 per load. Logging companies cannot simply pass those higher costs on to buyers—the prices for raw wood are set by mills and buyers, not by the contractors who haul the trees.

“The mood across the Northeast’s logging industry is grim,” says Dana Doran, executive director of the PLC. “I talk with loggers every week, and none of them tell me business is better than it was a year ago.”

Indeed, the rise in fuel costs has forced several owners to shut down. A central Maine logging company that had been in business for ten years closed its doors last month, with the owner telling a local newspaper, “Nothing was improving… It doesn’t seem like it’s going to get any better anytime soon, and we just didn’t want to go any further.”

A northern Maine logger, who has spent two decades in the industry, plans to close his operation before the end of the year. “Every cost you can think of in the business has gone up, and the rates for wood never really changed,” he said. “I just can’t find a business model that’s going to work the way things are.”

The fuel crisis is only the tip of a broader set of challenges. Diesel powers nearly every component of logging—from trucks to equipment maintenance—so rising fuel prices also drive up the cost of lubricants, replacement parts, and machinery. While some wood buyers have offered price increases of $3 to $4 per ton for certain species, those modest gains cover less than half of the additional diesel expense. Before the recent spike, many contractors operated on profit margins of just 1% to 2%. Now, a sizable number of companies are breaking even or operating at a loss.

The issue is compounded by recent mill closures. Finch Paper in Glens Falls, New York, and the Nackawic mill in New Brunswick have both announced shutdowns, citing high operating costs and trade disputes that increase the price of imported equipment and parts. The loss of these mills has reverberated throughout the supply chain, leaving local loggers with fewer buyers and further squeezing their margins.

“It’s not just diesel that’s putting us in trouble,” said a western Maine contractor in an interview. “Diesel is something that’s going to take care of itself sooner or later, but if we only focus on diesel fuel, the mess is still there.” The contractor added that stronger markets, affordable equipment and parts, business‑friendly policies, and a reliable supply of skilled workers are needed to help loggers weather rising costs.

Without a comprehensive response, many contractors are forced to deplete the reserves that once helped them weather economic downturns. “We’re essentially running on fumes,” said the northern Maine logger, adding that the industry’s future depends on a combination of relief from fuel costs and broader structural support.

State and federal officials have yet to offer targeted relief for the logging sector. The PLC has called for policies that address the deeper economic pressures threatening the industry—beyond the immediate pain of high fuel prices. Meanwhile, local communities—whose economies are tied to the forest products industry—watch with concern as logging operations close, weakening the supply chain that supports jobs and businesses across the region.

As diesel prices remain high, the fate of many Maine logging companies hangs in the balance. The industry’s survival will depend on a concerted effort to provide both short‑term relief and long‑term solutions that strengthen the entire forest‑products supply chain.