Overall Shipping Costs Decrease, LTL on the Rise

TORONTO, ON — New results from the Canadian General Freight Index (CGFI) indicate that the total cost of ground transportation for Canadian shippers decreased by 1.2 percent in September when compared with August.

However, when this most recent reading is compared to September 2014, it is up 11 percent, the second biggest year-over-year increase of 2015, following a near 11.4 percent improvement in August.

The Base Rate Index, which excludes accessorial charges assessed by carriers, decreased 0.7 percent when compared to August but is up 17.9 percent from a year earlier, its best year-over-year improvement of 2015 and has been increasing since the start of the year.

Average fuel surcharges assessed by carriers decreased again in September. Fuel was 13.28 percent of base rates, it lowest level of 2015, versus 14.39 percent in August. Compared to September 2014 this latest reading is down nearly 36 percent.

“In September, both base and fuel costs dropped. total domestic and cross-border less-than-truckload (LTL) increased while total domestic and cross-border truckload decreased,” said Doug Payne, president and chief operating officer of, Nulogx, a transportation management system provider that provides analysis of the report. “It seems the steady decrease in domestic LTL over the past year and a half has leveled off and is actually starting to increase. The change in transborder LTL is more significant and has risen at a greater pace over the past six months.”

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