Increased Fuel Surcharges Offsetting Reductions In Base Rates
May 27th, 2011 - Results published today by the Canadian General Freight Index (CGFI) indicate that the cost of ground transportation for Canadian Shippers increased slightly in March when compared to February due to increases in Fuel Surcharges assessed by carriers.
The CGFI Total Freight Cost Index rose by .4% in March when compared to February, while the Base Rate Index, which excludes the impact of Fuel Surcharges assessed by carriers, decreased .7% during the same period. Offsetting the decrease in Base Rates was a significant increase in average Fuel Surcharges which rose from 17.4% to 18.8% of Base Rates.
Fuel surcharges increased for the 6th consecutive month, and reached their highest point in over 2 years.
"Increasing fuel prices continue to be the major factor affecting transportation costs", commented Doug Payne, President & COO Nulogx."While Base Rates are relatively stable to declining, increasing fuel prices are starting to have a real impact on shipping costs," continued Payne.
For full details on the CGFI please visit: www.cgfi.ca
About the CGFI
The CGFI is sponsored by Nulogx a leading Transportation Management Solutions provider, and is used by shippers and carriers to benchmark performance, develop business plans, and secure competitive agreements. It was developed with the assistance of Dr. Alan Saipe. The most recent results are available at the CGFI website: www.cgfi.ca
Nulogx provides technology and services to improve transportation processes and reduce costs. With an ability to offer the combined value of a best-in-class TMS Application, expert Managed Services, and the largest Freight Audit and Payment service in Canada, Nulogx can provide unprecedented value to North American shippers by improving freight planning and management processes, delivering robust business intelligence in actionable management reporting formats, and providing cost effective alternatives to managing transportation tasks.