Freight costs decline in January, fuel surcharges reach two-year high
TORONTO, Ont. — The cost of ground transportation for Canadian shippers dropped for the fourth consecutive month in January, while fuel surcharges assessed by carriers rose to the highest level in more than two years, according to the most recent results published by the Canadian General Freight Index (CGFI).
The CGFI Total Freight Cost Index decreased by .4% in January compared to December, while the Base Rate Index, which excludes the impact of fuel surcharges assessed by carriers, decreased 1.5%. The CGFI is still 2.5% above the April low point and 1.8% above last year’s result for the same period.
Notably, average fuel surcharges increased substantially for the fourth consecutive month from their September low of 13.0% to 16.3% in December.
“The increase in fuel surcharges is continuing to offset the decreases in base rates being charged by carriers,” commented Doug Payne, president and COO of Nulogx. “As fuel prices continue to increase we envision escalating transportation costs for Canadian shippers in the coming months.”
For more information, visit www.cgfi.ca.
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