Freight Rates Post Solid Gains Despite Lower Fuel Prices

MISSISSAUGA — Freight rates are on the rise with newly released figures showing the total cost of ground transportation paid by Canadian shippers increasing 2.2% in February from the month before, according to the Canadian General Freight Index.

This follows month-to-month gains of 2.4% in January and 2.7% in December along with declines last year in April through September.

Compared to February 2014, the index is up more than 3.2%, its biggest year-over-year gain since June.

The Base Rate Index, which excludes the impact of accessorial charges assessed by carriers, increased by 2.6 % in February when compared to January. Compared to February 2014 it is nearly 5.7% higher.

Average fuel surcharges assessed by carriers decreased this month. Fuel was 16.02 % of base rates in February versus 17.22% in January.

“Total freight costs continue to rise driven by truckload activity in February, despite decreasing fuel costs.” said Doug Payne, President and COO of Nulogx, a transportation management services provider. “Once again cross border and domestic less-than-truckload total costs slid in February, but were outweighed by the domestic and cross border truckload increases.”

He said cross border truckload base rates are 18.5 % higher than a year ago, while LTL rates, both domestic and cross border, are more than 10% lower.

Domestic truckload rates are very near the level of a year ago.

A complete breakdown, including charts, can be viewed on the CGFI website.


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