TORONTO, Ont. — The latest Canadian General Freight Index (CGFI) shows a continued softening in ground transportation rates.
The index indicated the cost of ground transportation for Canadian shippers dropped for the third consecutive month in December, in contrast to fuel surcharges, which continue to rise.
The CGFI Total Freight Cost Index dropped 1.6% in December compared to November while the Base Rate Index, which excludes fuel surcharges, declined 2.5%. The index remains 2.9% above its April low point and 1.5% higher than last year’s results for the same period.
Fuel surcharges reached 15.7% in December, up fro a September low of 13%.
“In December we continued to see the cooling off of the domestic truckload sector,” said Doug Payne, president and COO of Nulogx. “However this was offset somewhat by a sustained increase in fuel surcharges and a surprisingly strong domestic LTL result.”
Alan Saipe, president of Supply Chain Surveys, added “While the price increases seen in the domestic truckload sector earlier in the year did not take, we are expecting that carriers will try again for rate increases in early 2011.”
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