Results published today by the Canadian General Freight Index (CGFI) indicate that the cost of ground transportation for Canadian Shippers increased in September for the first time since April; primarily due to increases in fuel prices.
The CGFI September results show that Fuel Surcharges assessed by carriers continued their recent upward trend, increasing eight percent month over month, and 26% since their lowest point last May. When the impact of rising Fuel Surcharges is removed from the CGFI findings, Base Rates actually declined slightly, dropping an additional point six percent (.6%) from August results.
“Ground freight costs which have trended down for more than a year appear to have bottomed and are starting to increase again,” says Alan Saipe, President, Supply Chain Surveys Inc., and long time analyst and observer of the transportation and logistics industry. “In September, Less Than Truck Load (LTL) Base Rates reversed their recent trend and increased. Although Truck Load (TL) rates declined in September, when Base Rates for all categories of ground transportation were combined, and the impact of rising Fuel Surcharges was included, total Ground Transportation costs increased point eight percent (.8%).
The CGFI is sponsored by Nulogx, a leading Transportation Management Solutions provider used by shippers and carriers to benchmark performance, develop business plans, and secure competitive agreements. It was developed with the assistance of Dr. Alan Saipe. The most recent results are available at the CGFI website: www.cgfi.ca