Results published Aug. 5 by the Canadian General Freight Index indicate that the cost of ground transportation for Canadian Shippers continued to increase in May. Overall freight costs increased by 3 percent in May compared to April.
“Akin to April’s results, we are seeing increases in the truckload sector, which is likely more sensitive to changes in capacity demand,” says Dr. Alan Saipe, president of Supply Chain Surveys Inc. “This could be an indication of what may come in the future for LTL rates.”
Base rates, which exclude the impact of fuel surcharges assessed by carriers, increased by 2.7 percent, with average fuel surcharges increasing by 2.9 percent from the prior month.
“With the continuous volatility in the rates, those in the transportation industry will need to be careful when planning ahead for 2011 and must consider a multitude of factors before doing so,” says Doug Payne, president of Nulogx.