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IMPORTANT INFORMATION FOR

BANGLADESH FURNITURE MAKERS AND LUMBER IMPORTERS

 

Dhaka Timber main function is to conduct research for sources of quality Canadian hardwood and softwood lumber at the lowest possible price for our Bangladesh customers.

 

 

 

LOWEST POSSIBLE COST:

Lumber suppliers in North America range from small family-run businesses to huge multi-layered operations.  Dhaka Timber is constantly researching for the best suppliers throughout Canada and the U.S.  We look for suppliers that have the largest integrated capacity in terms of direct-from-forest purchasing, kiln-drying facilities, grading facilities, sawmill facilities, and expertise in international marine shipments via 20 and 40 foot containers.

Prices are continually changing in the lumber business, depending on inventory and demand for a particular species.  The price for lumber changes from week to week.  The mill that we order from today may be different than the mill that we order from tomorrow, for the very same lumber.  Dhaka Timber main responsibility is to find sources of lumber for our Bangladesh customers at the lowest possible price.  Dhaka Timber updates its database on price/supply on a daily basis, saving our customers hundreds to possibly thousands of dollars on a container load.

Finally, shipping costs vary from shipper to shipper, and we are constantly researching to find for you the least expensive way to get your 20 or 40 foot container to Bangladesh.  Choosing the right shipping company and the right port, east coast or west coast, can save you hundreds of USD per shipment.

 

 

 

PRICE STABILITY:

Dhaka Timber has impressed upon our group of lumber suppliers the importance of price stability.  The prices we quote to our Bangladesh customers will usually be stable for a minimum of 3 months.   After 3 months it is impossible to predict what the state of the lumber industry will be.  However, all the economic indicators in North America at this point suggest that for 2009 there will be a continuing downtrend, and it will be a very difficult year for the economy.  Therefore it is a safe assumption to make that if there are any price increases 3 months from now, they will be modest at best.

 

REASONS FOR INCREASED PRICE WITH INCREASED THICKNESS:

 

The sequence of events for kiln-drying the wood is as follows:

1.Cut trees down, and bring the logs to a sawmill

2.Mill the logs into planks

3.Air dry the planks to have a more consistent moisture content before kiln-drying (several weeks)

4.Kiln-drying (1-8 months)

 

The length of time for kiln-drying is very high.  Here are typical examples:

WHITE ASH,  1 inch thickness, 75 deg centigrade, 3-4 weeks in the kiln until sufficiently dry

WHITE ASH, 2 inch thickness, 75 deg centigrade,  2 months in the kiln until sufficiently dry

HARD MAPLE,  1 inch thickness, 75 deg centigrade, 6-8 weeks in the kiln

HARD MAPLE,  2 inch thickness, 75 deg centigrade, 10 weeks in the kiln

RED OAK, 2 inch thickness, 3 to 6 months or more in the kiln

 

The power consumption to keep a kiln at 75 deg centigrade is enormous.  Lumber suppliers  use 3 techniques, as follows:

(a)Burn wood chips and sawdust from the sawmill

(b)Heat via electricity

(c)Heat via natural gas

At the beginning of the kiln-drying process, they do not ramp up the temperature immediately to 75 deg C.  Instead, they introduce very slowly humidity and moisture, bring the heat up slowly to a designated intermediate temperature, then slowly remove the added humidity, and then finally ramp up the temperature to 75 deg C., and then the wood sits for several weeks or months until the desired moisture level has been reached.  If you try to speed up this process, there is a danger that you will “cook” the wood on the outside, while not removing enough moisture on the inside.

When a log is cut into planks at the mill, there are fewer thicker pieces than thinner pieces, so the supply of 2” thickness of a designated grade of lumber is always less than the supply for the 1” thickness.  Because the log is round, if you try to cut a thicker piece near the edge, you lose too much wood, so the thicker pieces must be cut closer to the middle of the log.  Simply expressed, for every log that goes into the mill, you end up with more thinner pieces than you do thicker pieces, and this contributes to the higher cost of the thicker pieces.

 

 

 

ORDERING FLEXIBILITY:

 

Throughout North America, lumber suppliers quote their prices on the basis of USD per 1000 board feet.  One board foot = 1” x 12” x 12”, and there are 12 board feet in a Bangladesh CFT, which is one cubic foot.  Prices are usually quoted on the basis of RWL, which is Random Width and Length.  Please see the accompanying sheet which demonstrates a typical pallet of RWL lumber.

 

Some lumber suppliers are willing to co-operate more than others to meet the specific needs of a customer.  We at Dhaka Timber make an effort to work with suppliers that exhibit the greatest degree of flexibility for Bangladesh exports.

 

1.A customer can request a particular length of lumber, for example all pieces to be 8 feet long.  In that case some lumber yards will sort through all the random pieces of lumber (there is a mixture of 6-10 feet long pieces), and pull out all the 8 foot lengths for that customer’s order.

 

2.A customer can request that a bundle be split into 2 parts, if they want to test out a very small quantity of lumber of a designated size, or grade.  Normally, a bundle is 42 inches wide, and 42 inches high, and the lumber is 6-10 feet long.  However, the lumber supplier can make up a (one-half) pallet that is only 21 inches high.

 

So for example, let us say a customer wants to order just 700 board feet of 2 inch thick Walnut, FAS grade.  They do not want to spend money on a full bundle, because they are not sure if they will like this particular wood/grade etc., or perhaps they simply do not need a full bundle. Now they have the flexibility of ordering a much smaller quantity according to their needs.

 

3.A customer can request a particular width of lumber, but normally there will be an extra charge, due to all the manual sorting required.  However, if sufficient notice (2-3 months) is given to the lumber supplier, they can arrange to do this sorting at the same time as the grading, thereby minimizing such additional cost.  The cheapest way to order North American lumber is the usual RWL, random width and length, where  the majority of widths will fall into the 6-7” range, and the majority of lengths will fall into the 10-12’ range.

 

 

 

TYPICAL DISTRIBUTION ON A BUNDLE OF CANADIAN HARDWOOD LUMBER

 

MOST PRICES ARE QUOTED ON THE BASIS OF RWL

RANDOM WIDTH AND LENGTH

 

Please note that every bundle will be different, but the highest percentage of widths will always be in the range of 6-7 inches, and most of the lengths are 9-11 feet long.

 

BUNDLE  EXAMPLE:

Canadian White Ash, 4/4 (1 inch thick)

Bundle contains 238 pieces of lumber (1,358 board feet, or 113.17 CFT) as follows:

11 pieces………………5 inch width

110 pieces ……………6 inch width

56 pieces…………….7 inch width

32 pieces………….8 inch width

26 pieces………….9 inch width

1 piece…….…….10 inch width

1 piece……….…11 inch width

1 piece…………14 inch width

 

 

The Canadian lumber supplier can provide all pieces  8 FEET LONG, or a specified length, as requested by customer if such a load of lumber is available, at no extra cost.  Customer should specify what length of lumber it prefers, and the lumber supplier will do everything possible to meet that request.

 

 

WHY ORDER FROM CANADA?

 

1.HONESTY…………have you ever ordered Teak lumber (“Shegun”) from a supplier in Myanmar?  Did you receive in your container exactly what you ordered?  Maybe yes, maybe no.  Ordering from a Canadian supplier ensures honesty and integrity.  We want your business long-term, we want your repeat business, and we cannot afford to short-change or “rip-off” our customers.  What you order is exactly what you will receive.  All Canadian lumber is graded according to strict North American grading standards.

Your shipment is checked and double-checked before being loaded onto the container, for the highest possible accuracy.  You will receive what you ordered, both in terms of quality and quantity.  A detailed packing list is provided with every order, describing quantity, grading, lengths, widths and thicknesses.

 

2.QUALITY OF LUMBER…………….Canada is a country with a cold climate….our trees grow slowly, and therefore they are more dense than trees that grow in a tropical climate.  Our Canadian hardwoods have a reputation for quality second to none, and there is a wide variety to choose from ranging in colour and grain patterns.  Furniture made from Canadian lumber will last many years, and can be passed down by family members from generation to generation.

 

3.ENDLESS SUPPLY…………….Canada has huge forests.  We have an endless supply of whatever type of lumber you want.  Order as many containers as you want every month.  With an endless supply of lumber, you now have an opportunity to increase production, and thereby increase your profits.

 

4.SAVE MONEY AND INCREASE PROFITS……………..Dhaka Timber and its Bangladesh agents have researched lumber costs in Bangladesh, and we are very sensitive to your pricing requirements.  We understand that a large percentage of the population have limited budgets for furniture.  That is why we spend an enormous amount of time in Canada, researching and seeking out the lowest-cost suppliers of lumber for our Bangladesh customers.  We know you are price sensitive, and we want you to save money.  Lumber prices change virtually every week, and it is our main function to get you the lowest possible price for every order you place, while at the same time providing you with as much price stability as possible.  We look forward to establishing a close, mutually-rewarding, and long-term relationship with each one of our Bangladesh customers.

 

ORDERING PROCEDURE FOR CANADIAN HARDWOOD and SOFTWOOD LUMBER

 

 

1.Customer sends a PURCHASE ORDER to Dhaka Timber.

 

2.Dhaka Timber issues a signed PRO-FORMA INVOICE  to Customer

 

3.Customer signs, scans and returns the Pro-Forma Invoice to Dhaka Timber.

 

4.Customer opens an Irrevocable Letter of Credit at Sight (L/C) with a Bangladesh bank,

 

5.Dhaka Timber pre-pays 100% of the  cost for a 40 foot container

 

6.Canadian supplier requires minimum 1 week preparation time for order

 

7.PSI (pre-shipment inspection) is required by Bangladesh government when order ready

 

8.Canadian supplier will provide detailed PACKING LIST of each bundle in container

 

9.Allow minimum 1 week to transport container to ship, and for ship departure day

 

10.     Container loaded onto ship, all documents including Bill of Lading, Certificate of Origin, Phytosanitary          Certificate etc. sent to Customer’s bank, and L/C payment completed when terms are met