Results published today by the Canadian General Freight Index (CGFI) indicate that the cost of ground transportation for Canadian Shippers increased .8% in January when compared with December results. After the 11th consecutive monthly increase, the CGFI is now 9.5% above the February 2011 result.
The Base Rate Index, which excludes the impact of Accessorial Charges assessed by carriers increased slightly in January, and is now .3% over the December result. Since February 2011, base rates reported by the CGFI have risen 3.8%.
“Rising Accessorial Charges continue to be the primary driver of increasing freight costs for Canadian shippers” said Doug Payne, President & COO, Nulogx. “While these typically decline in the spring, we will continue to monitor this to determine if they are seasonal increases, or part of a general pricing trend by carriers” continued Payne.
The CGFI is sponsored by Nulogx, a leading Transportation Management Solutions provider, and is 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.
I wrote an article descibing how accessorial charges can impact freight rates. I am in agreement with this premise and how many shippers do not pay enough attention.
http://www.sixsigmaiq.com/article.cfm?externalID=817
This is the kind of news we try to pay close attention to.
It may seem counter intuitive that the self storage industry should be worried about shipping costs, but it is actually highly relevant. This information can help inform potential tenants as to the length of self storage stays as well as planning ahead for big moves.
I do finance consultancy for these three freight companies viz VISION LOGISTICS LTD; CAC LIMITED WWM; SPEEDBIRD COMPANY LTD in Ghana, West Africa.
I am interested in factors impacting freight costs worldwide.
Regards/ FC