Results of the Canadian General Freight Index released Wednesday, June 29, 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 percent in April when compared to March, the largest monthly gain since July 2010. The Base Rate Index, which excludes the impact of fuel surcharges assessed by carriers, increased 1.1 percent during the same period.
In addition, average fuel surcharges assessed by carriers increased from 18.8 percent of base rates to 19.9 percent and contributed significantly to the rise in freight costs. Of note is that fuel surcharges increased for the seventh consecutive month and have reached their highest point since November 2008.
“Lately, increasing fuel prices have been the major factor affecting transportation costs”, says Doug Payne, president and chief operating officer of Nulogx, which oversees the index. “However, in April we saw a notable increase in truckload base rates begin to contribute to this rise in freight costs.”
