Each day TFO Canada publishes a sample of trade news on the Canadian import market along with any new, updated or changed regulations and legislations regarding international trade; countries in which TFO Canada offers services and on the export sectors which it promotes.
Freight Costs Increasing for Canadian Shippers, CGFI IndicatesTuesday, July 05, 2011 > 13:05:52
(Canadian Transportation & Logistics)
Results published today by the Canadian General Freight Index (CGFI) indicate that the cost of ground transportation for Canadian shippers increased notably in April when compared to March due to increases in both Base Rates and Fuel Surcharges assessed by carriers.
The CGFI Total Freight Cost Index rose by 1.7% in April when compared to March, the largest 1 month gain since July 2010. The Base Rate Index, which excludes the impact of Fuel Surcharges assessed by carriers, increased 1.1% during the same period. In addition, average fuel surcharges assessed by carriers increased from 18.8% of Base Rates to 19.9%, and contributed significantly to the rise in freight costs.
Of note is that fuel surcharges increased for the 7th consecutive month, and have reached their highest point since November 2008.
"Lately, increasing fuel prices have been the major factor affecting transportation costs", commented Doug Payne, President & COO Nulogx. "However in April we saw a notable increase in Truckload Base Rates begin to contribute to this rise in freight costs" continued Payne.
For full details on the CGFI please visit: http://www.cgfi.ca