Results published by the Canadian General Freight Index indicate
that after several months of steady increases, the cost of ground
transportation for Canadian shippers dropped slightly in October.
The CGFI Total Freight Cost Index decreased by 0.8% in
October compared to September, while the Base Rate Index,
which excludes the impact of fuel surcharges assessed by carriers,
decreased 0.92%. The CGFI is still 7.5% above the April low point
and 5.3% above last year’s result for the same period.
Notably, average fuel surcharges increased by 6% to 13.77% of
base rates when compared to September results. Fuel surcharges
increased for the first time in five months, and are beginning to
reflect the higher cost of diesel fuel for trucking companies.
In September, the CGFI Total Freight Cost Index increased
by 0.4% compared to August, while the Base Rate Index also
increased by 0.7%. Average fuel surcharges remained essentially
unchanged at 13% for the month.
“We are just starting to see the impact that higher fuel prices
will have on shippers and trucking companies, and we expect to
monitor this trend through the winter months,” said Doug Payne,
president and chief operating officer of Nulogx. “As for the slight
decline in base rates, this is not unexpected given the consecutive
monthly increases we have seen since last April.”
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