TORONTO, Ont. — Nulogx, a Canadian company specializing in transportation management solutions, has introduced a new general freight index. The Canadian General Freight Index (CGFI) will be published monthly by Nulogx and is based on its database of more than $750 million per year in transportation transactions.
“The CGFI is an excellent barometer of freight costs for Canadian Shippers,” said officials in a release.
Officials say the index has fallen “substantially” over the last year, plummeting more than 13% since its peak in July 2008, and 7.8% in the first five months of 2009. Discounting the impact of declining fuel surcharges, the Index for Base Freight costs has increased 1% since July 2008 and .7% in the first five months of 2009.
“We believe that the CGFI will become a highly useful tool for both shippers and carriers as they develop budgets and negotiate agreements in the years to come,” said Scott Irvine, vice-president of business development for Nulogx.
The CGFI was developed with the assistance of Dr. Alan Saipe, president of Supply Chain Surveys, Inc., a long-time analyst and observer of the transportation and logistics industry.
“Nulogx has been able to leverage its extensive database of more than two million annual transactions to develop a unique insight into Canada’s freight market,” said Dr. Saipe. “Their extensive analysis of this information has created a statistically valid benchmark for the overall movement of freight prices that can fluctuate quickly with changes in supply and demand for transportation services.
“In the first seven months of 2008, general freight costs rose significantly, driven up by increases in both freight rates and fuel surcharges. Then the realities of the slowing economy in both Canada and the US began to take over. The result brought total freight costs down by 13.4% from their peak in July 2008,” continued Saipe.
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