Freight Shipping Costs Fall Less Than 1 Percent
TORONTO –New results published by the Canadian General Freight Index (CGFI) indicate that the total cost of ground transportation for Canadian shippers decreased by 0.6 percent in July from the month before, following increases the previous two months.
Despite the decline, the measure is up nearly 10.2 percent from July 2014, the best year-over-year showing so far in 2015. It includes all accessorial and fuel surcharges, but excludes specialty freight services, rail, air, ocean and courier.
“Cross-border less-than-truckload (LTL) and truckload had small increases this month. Once again, these were mostly offset by decreases in the domestic truckload costs, with a slight decrease in the domestic LTL freight costs,” said Doug Payne, president and chief operating officer of Nulogx, a transportation management system provider that provides analysis of the report. “Cross-border truckload and LTL and domestic truckload are above a year ago while the domestic LTL freight costs are below a year ago.”
The report also shows the Base Rate Index, which excludes accessorial charges assessed by carriers, increased 0.4 percent when compared to June and is up 15.9 percent versus the same time a year earlier, the latter being another high so far during 2015.
Average fuel surcharges assessed by carriers decreased in July by 4.4 percent from June and are 31.1 percent less than compared to July 2014. Fuel was 14.88 percent of base rates in July versus 15.66 percent in June.
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