TORONTO, Ont. — The cost of ground transportation for Canadian shippers increased 1.1% in December when compared with November results, according to the latest results from the Canadian General Freight Index (CGFI). This marks the tenth consecutive monthly increase for the CGFI, which now sits 8.1% above the December 2010 result.

The Base Rate Index, which excludes the impact of accessorial charges assessed by carriers, remained essentially the same in December versus November. Since December 2010 base rates reported by the CGFI have risen only .8%

Increasing accessorial charges (including fuel surcharges) are the primary driver of increasing freight costs for Canadian shippers. In December, the average accessorial charges assessed by carriers increased to 27.8% of base rates, up from 26.7% in November, and 24.3% in October

“During the winter months it is not uncommon to see increases in non-fuel accessory charges as a result of seasonal shipping and winter conditions,” said Doug Payne, president and COO of Nulogx, which facilitates the CGFI. “While we expect these to decline in the spring, we are continuing to monitor the impact rising fuel prices has on shipping costs.”