The 1-2-3 shelterwood cut system developed by FPInnovations–Feric Division is increasingly being used as part of new ecosystem management approaches in eastern Canada. Feric evaluated the direct harvesting costs for the first entry phase in a shelterwood system implemented using the 1-2-3 method, which is also called shelterwood cutting with close selection. We compared the results of the partial cutting operation with those of harvesting with the protection of regeneration and soils (HPRS). The harvesting costs in the shelterwood approach can be up to $1.87/m³ more than in the HPRS treatment. However, the increased mean stem volume that is harvested as a result of the stem selection guidelines can mitigate this adverse impact in stands with large trees.