Canadian shipping costs climb for ninth month in a row

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The Canadian General Freight Index for November indicates that the cost of ground transportation for Canadian shippers increased 1.6 percent when compared with October results, the ninth consecutive monthly increase since March. During this time, the CGFI has risen 7.1 percent in aggregate.

The Base Rate Index, which excludes the impact of accessorial charges assessed by carriers, increased by a modest 0.4 percent in November versus October. Since March, base rates have risen 4.3 percent in aggregate.

An increase in fuel surcharges assessed by carriers is the primary reason why total costs are increasing at a faster rate than base rates. In November, the fuel surcharges assessed by carriers equated to 20.86 percent of base rates, up from 18.79 percent in March.

“We are starting to see increases in some sectors that have been hit the hardest during the economic downturn,” says Doug Payne, president and chief operating officer of Nulogx, which oversees the index. “This may be a sign that we are seeing both an increase in demand as well as continued operational and pricing discipline from carriers.”