Freight costs stabilized

TORONTO — After months of steady decline, the cost of ground transportation for Canadian shippers in November 2009 remained virtually unchanged from the month prior.

According to Nulogix, developer of the new Canadian General Freight Index (CGFI), overall freight costs decreased by only 0.1 percent in November 2009 when compared to October 2009.

Base rates, which exclude the impact of fuel surcharges assessed by carriers, fell 1.5 percent while average fuel surcharges increased by 7.4 percent from the prior month; negating the benefit of the base rate reduction.

"It appears that we are entering a period of stabilizing freight costs," says Doug Payne, president of Nulogx. "Going forward, we anticipate that further cost reductions for shippers will come from improved productivity, as opposed to the market forces that have been at work over the last 18 months.”

The CGFI 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, president of Supply Chain Surveys, Inc a provider of management surveys and consulting services.

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