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Home » Canada's Freight Costs Continued to Drop in January, But Fuel Surcharges Maintain Their Rise

Canada's Freight Costs Continued to Drop in January, But Fuel Surcharges Maintain Their Rise

April 1, 2011
Nulogx

Results published by the Canadian General Freight Index (CGFI) indicate that the cost of ground transportation for Canadian shippers dropped for the fourth consecutive month in January, while fuel surcharges assessed by carriers rose to the highest level in more than two years.

The CGFI Total Freight Cost Index decreased by .4 percent in January compared to December, while the Base Rate Index, which excludes the impact of fuel surcharges assessed by carriers, decreased 1.5 percent.  The CGFI is still 2.5 percent above the April low point and 1.8 percent above last year's result for the same period.

Notably, average fuel surcharges increased substantially for the fourth consecutive month from their September low of 13.0 percent to 16.3 percent in December.

"The increase in fuel surcharges is continuing to offset the decreases in base rates being charged by carriers," said Doug Payne, president and chief operating officer of Nulogx, a transportation management solutions provider that sponsors the index.  "As fuel prices continue to increase we envision escalating transportation costs for Canadian shippers in the coming months."

Source: Nulogx

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Logistics Global Logistics Logistics Outsourcing LTL/Truckload Services Transportation & Distribution
KEYWORDS Canada Global Logistics Logistics Logistics Outsourcing LTL/Truckload Services Transportation & Distribution
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