Results published by the Canadian General Freight Index (CGFI) indicate that the cost of ground transportation for Canadian shippers increased 1.6 percent in November when compared with October results. This represents the 9th consecutive monthly increase since March 2011. During this time the CGFI has risen 7.1 percent in aggregate.
The Base Rate Index, which excludes the impact of accessorial charges assessed by carriers, increased by a modest .4 percent in November versus October. Since March 2011 base rates have risen 4.3 percent in aggregate.
An increase in fuel surcharges assessed by carriers is the primary reason why total costs are increasing at a faster rate than base rates. In November the fuel surcharges assessed by carriers equated to 20.86 percent of base rates, up from 18.79 percent in March.
"We are starting to see increases in some sectors that have been hit the hardest during the economic downturn," said Doug Payne, president and COO of Nulogx, a transportation management solutions provider, which sponsors the CGFI. "This may be a sign that we are seeing both an increase in demand as well as continued operational and pricing discipline from carriers."
Click here for full details on the CGFI.
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