Our annual Transportation Buying Trends Survey of Canadian shippers has just been completed and the results are encouraging. They indicate that after five straight years of declines in the number of s...
Our annual Transportation Buying Trends Survey of Canadian shippers has just been completed and the results are encouraging. They indicate that after five straight years of declines in the number of shippers reporting a year-over-year increase in their shipment levels, freight activity is showing a significant increase from the disaster of 2009. Forty six per cent of the shippers surveyed across Canada said they increased their shipment levels in 2010 compared to the previous year. This is consistent with the findings of the Transcore Canadian Spot Market Freight Index, which has been showing strong growth all year, and the Nulogx Canadian General Freight Index, which has been reporting rising ground transportation costs for several months now.
However, the numbers need to be placed in perspective. Last year freight volumes suffered a precipitous drop with only 27% of shippers reporting an increase in their levels, compared to the 71% who said likewise back in 2004. So 2010 volumes are being judged against very low numbers for 2009. Our survey also found that about a third of shippers increased their shipment levels by 5-9% over the previous year while a tenth reported less than a 5% increase. Looking ahead to next year, 60% of shippers expect to raise their volumes in 2011, although that figure should be viewed with considerable caution as shippers historically tend to overestimate future freight volumes. For example, back in 2009 59% said they would be increasing shipment volumes in 2010, yet only 46% ended up doing so.
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