Canadian shipping costs climb in July

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Results published Thursday, Sept. 29, by the Canadian General Freight Index indicate that the cost of ground transportation for Canadian shippers increased 1.2 percent in July when compared to June. The Base Rate Index, which excludes the impact of fuel surcharges assessed by carriers, has increased for four consecutive months, including a 1.4 percent increase in July. However, base rates remain 3.6 percent below the same period in July 2010.

Average fuel surcharges assessed by carriers declined from 19.3 percent of base rates in June to 19.0 percent in July. “It appears there is a trend toward marginal increases in base rates,” says Doug Payne, president and chief operating officer of Nulogx, which oversees the index. “If carriers continue to manage their capacity and price rationally, we may see this trend continue, but that could be offset if there is a slowing economy.”