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Home » Canadian Freight Costs Decline in November, But Fuel Surcharges Continue to Rise

Canadian Freight Costs Decline in November, But Fuel Surcharges Continue to Rise

January 28, 2011
Nulogx

After several months of steady increases, the cost of ground transportation for Canadian shippers in November dropped for the second consecutive month.

The CGFI Total Freight Cost Index decreased by 2.8 percent in November compared to October, while the Base Rate Index, which excludes the impact of fuel surcharges assessed by carriers, decreased 3.1 percent. The CGFI is still 4.5 percent above the April low point and 2.8 percent above last year's result for the same period.

Notably, average fuel surcharges continued to increase for the second consecutive month from their September low of 13.0 percent to 14.4 percent in November.

"We are seeing some interesting changes in transportation costs for Canadian shippers," said Doug Payne, president and chief operations officer of Nulogx, a transportation management solutions provider that sponsors the CGFI. "The cost increases we saw predominantly in the domestic truckload sector definitely cooled in the fall months, while at the same time fuel surcharges have started to increase.  Both of these developments create some uncertainty around freight costs in Canada over the next few months," Payne said.

Source: Nulogx

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KEYWORDS Canada Global Logistics Global Supply Chain Management Logistics Logistics Outsourcing LTL/Truckload Services Supply Chain Analysis & Consulting Technology Transportation & Distribution Transportation Management
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