Results published today by the Canadian General Freight Index (CGFI) indicate that the cost of ground transportation for Canadian Shippers increased slightly during the first 6 months of 2010.
Overall Freight Costs increased by 1.8% from December 2009 to June 2010. Base Rates, which exclude the impact of Fuel Surcharges assessed by carriers, also increased by 2.2%. Average Fuel Surcharges decreased marginally from 14.7% of base rates to 13.4% which buffered the effect of the increasing Base Rates.
In addition, overall freight costs for June trended upward, increasing 1.9% when compared to May and 3.2% compared to April.
According to Dr. Alan Saipe, President, Supply Chain Surveys Inc.""While rates continued to trend downward in the first quarter of 2010, we have seen two successive months of increases, which may indicate that we reached bottom in April although it is still too early to know for sure".
"Most of the increases are in the Domestic Truckload sector," says Doug Payne, President of Nulogx, "If fleet operators have eliminated their excess capacity they may now be looking to secure price increases in this more volatile market segment."
Join Nulogx and SCL at our upcoming Breakfast Seminar September 14th to hear Dr. Alan Saipe and other experts share their opinions on expected changes in transportation rates in the coming months.
Industry experts will discuss timely and valuable information for shippers, carriers and supply chain practitioners challenged with creating business plans for 2011 in these uncertain times. Join us to gain insight on the economy and its effect on the transportation industry and to learn how both shippers and carriers are planning for 2011 and steps you can take to prepare your company for these changes.
For more information on this exciting event click here
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.
CGFI Methodology:
CGFI results are derived from a database consisting of more than 5 million audited freight invoices, representing more than 100 corporate operating entities and approximately 1,000 carriers. Our proprietary methodology for developing the index values involves intensive data filtering and validation, as well as a series of highly correlated linear regressions that isolate the impact changing freight prices have on traditional dry-van freight costs for Canadian shippers. Approximately 20% of transactions are to or from the USA, with a smaller percentage of transactions in US currency. US denominated shipments are translated into Canadian currency based on exchange rate on shipping day.
About Nulogx;
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.
About Dr. Alan Saipe
Dr. Alan L. Saipe is the President of Supply Chain Surveys, Inc a provider of management surveys and consulting services. He held academic appointments at York University, and the University of Toronto. He led the supply chain logistics consulting practice at KPMG Consulting. Today, his consulting services include Management Surveys & Benchmarking, Improving Operating Results, Senior Advisory Services and Mediation & Conflict Resolution.
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