The racking resistance of APA plywood or OSB wall bracing panels and the lateral load capacity of a shear wall for wind and seismic loading is not affected by the orientation of the sheathing panels. Panels may be installed with the long, or strength, axis either horizontal or vertical. However, all panel edges of shear wall sheathing must be attached to framing or blocked unless designed as an unblocked shear wall.
The IRC requires blocking horizontal panel joints of wood structural panel sheathing for wall segments counted as bracing; however, blocking may be omitted where bracing length is at least twice the minimum required. For this reason, many designers and builders prefer to install sheathing with the long axis vertical, thus avoiding the need for additional horizontal blocking.