Results published today by the Canadian General Freight Index (CGFI) indicate that the cost of ground transportation for Canadian Shippers shows an increase in April.
“The results show a definite increase in Truck Load rates – which is consistent with what we are seeing in the industry,” says Dr. Alan Saipe, President of Supply Chain Surveys, Inc, “Less than Truck Load appears to be staying flat.”
Overall Freight Costs increased by 3.9% in April when compared to March. Base Rates, which exclude the impact of Fuel Surcharges assessed by carriers, also increased by 3.9% with Average Fuel Surcharges also decreasing by 1.4% from the prior month.
“While we are seeing a clear increase in demand for truckload capacity, it is still too early to know for sure if the price increases seen in April is the start of an upward trend,” says Doug Payne, President of Nulogx.
Jason Granger, Transportation and Industrials Analyst at BMO Capital Markets, commented on the April CGFI index and said, “The difference between rate changes in the Truckload sector versus the Less-than-Truckload sector is consistent with industry reports we have heard from channel checks among carriers in both Canada and the U.S. It is also in line with our view that more capacity has exited the system in the Truckload sector versus the Less-than-Truckload space, leading to tighter industry conditions for Truckload carriers. We believe base rates are too low to be sustainable for both Truckload carriers and LTL carriers.”