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I managed to figure it out myself.  For those who have the same question, it counted the log hauler hauling and all logs in its haul zone as in storage.

I am having trouble with storage detection.  My tree cutter is designated to cut until log storage full.  After that I have the cutter on a forever loop to keep checking if the storage is full.  

Loop(forever)          

          Loop(until log storage full)

                       Loop(until hands empty)

                                    Search for tree.   Move to Tree.  Use axe on tree

                     Go to axe storage.   Pick up axe from axe storage

          wait 1

The problem is, it always thins the long storage is full.  Could this be because the log storage has two layers? because it works fine when checking if plank storage is empty or full, which is not a double level.