Posts Tagged ‘base rates’

Freight Cost Increases Stall In September, CGFI Remains Constant While Base Rates Decrease Slightly

November 30th, 2011

Results published today by the Canadian General Freight Index (CGFI) indicate that the cost of ground transportation for Canadian Shippers in September remained the same when compared with August results.

However the Base Rate Index, which excludes the impact of Accessorial Charges assessed by carriers decreased by .1% for the same period.  This was the first decrease in Base Rates since March 2011.

Offsetting the decrease in Base Rates were slight increases in both Average Fuel Surcharges assessed by carriers and Other Accessorial Charges.  During this period the Fuel Surcharges assessed by carriers equated to 20.16% of Base Rates, up from 20.1% in August.  The combined effect of lower Base Rates and higher Accessorial Charges resulted in no change in average transportation costs for Canadian shippers.

“The slight decrease in Base Rates was predominantly driven by reduced costs in the Transborder Truckload sector,” said Doug Payne, President  & COO, Nulogx. “Over the summer these movements were subject to significant cost increases and it is possible that these are easing somewhat” continued Payne.

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 (after registering) at the CGFI website: www.cgfi.ca.

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Freight Costs Continue To Increase For Canadian Shippers Canadian General Freight Index Rises .4% In August

October 26th, 2011

domestic truckloadResults published today by the Canadian General Freight Index (CGFI) indicate that the cost of ground transportation for Canadian Shippers increased .4% in August 2011 when compared to July.

The Base Rate Index, which excludes the impact of Fuel Surcharges assessed by carriers, has increased for 6 consecutive months including a .6% increase in August. However, Base Rates remain 4.8% below the same period a year ago.

Average Fuel Surcharges assessed by carriers increased from 19.0% of Base Rates in July to 20.1% in August.

“The trend toward marginal increases in Base Rates we observed last month has continued,” said Doug Payne, President  & COO, Nulogx. “although it is interesting to note that they are still significantly below prior year levels” continued Payne.

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Freight Costs Continue To Increase For Canadian Shippers Canadian General Freight Index Rises 1.2% In July

September 29th, 2011

transportation logistics managementResults published today by the Canadian General Freight Index (CGFI) indicate that the cost of ground transportation for Canadian Shippers increased 1.2% in July 2011 when compared to June.

The Base Rate Index, which excludes the impact of Fuel Surcharges assessed by carriers, has increased for 4 consecutive months including a 1.4% increase in July. However, Base Rates remain 3.6% below the same period in July 2010.

Average Fuel Surcharges assessed by carriers declined from 19.3% of Base Rates in June to 19.0% in July.

“It appears there is a trend toward marginal increases in Base Rates,” said Doug Payne, President  & COO, Nulogx. “If carriers continue to manage their capacity and price rationally we may see this trend continue, however that could be offset if there is a slowing economy” continued Payne.

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Freight Costs Continue To Rise, Fuel Surcharges Increase For 8th Consecutive Month

July 27th, 2011

CGFI

 

Results published today by the Canadian General Freight Index (CGFI) indicate that the cost of ground transportation for Canadian Shippers increased in May when compared to April due to increases in both Base Rates and Fuel Surcharges assessed by carriers.

The CGFI Total Freight Cost Index rose by 0.8% in May when compared to April, its 3rd consecutive monthly increase. The Base Rate Index, which excludes the impact of Fuel Surcharges assessed by carriers, increased 0.4% during the same period. In addition, average fuel surcharges assessed by carriers increased from 19.9% of Base Rates to 20.3%.

Of note is that fuel surcharges increased for the 8th consecutive month, and have reached their highest point since November 2008.

“In May we saw the second successive month of increases in Base Rates,” commented Doug Payne, President & COO, Nulogx. “When added to the increase in Fuel Surcharges, this has a notable effect on ground transportation costs for Canadian shippers,” continued Payne.

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Overall Freight Costs increased by 3% in July when compared to June

October 8th, 2010

Results published today by the Canadian General Freight Index (CGFI) indicate that the trend of increasing ground transportation rates continued through the July 2010 period.

Overall Freight Costs increased by 3% in July when compared to June. Base Rates, which exclude the impact of Fuel Surcharges assessed by carriers, also increased by 3.2% while Average Fuel Surcharges decreased slightly 13.42% of Base Rates to 13.13% during the same period.

“The information provided by the CGFI continues to indicate that we reached a floor in transportation costs for Canadian Shippers in April of this year, says Doug Payne, President of Nulogx.  Since then we have seen 3 consecutive months of increases, led primarily by activity in both the Domestic and Transborder Truckload sectors”.

Click here to view July’s results.

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The Canadian General Freight Index Increases in April

July 6th, 2010

Results published today by the Canadian General Freight Index (CGFI) indicate that the cost of ground transportation for Canadian Shippers shows an increase in April.

“The results show a definite increase in Truck Load rates – which is consistent with what we are seeing in the industry,” says Dr. Alan Saipe, President of Supply Chain Surveys, Inc, “Less than Truck Load appears to be staying flat.”

Overall Freight Costs increased by 3.9% in April when compared to March. Base Rates, which exclude the impact of Fuel Surcharges assessed by carriers, also increased by 3.9% with Average Fuel Surcharges also decreasing by 1.4% from the prior month.

“While we are seeing a clear increase in demand for truckload capacity, it is still too early to know for sure if the price increases seen in April is the start of an upward trend,” says Doug Payne, President of Nulogx.

Jason Granger, Transportation and Industrials Analyst at BMO Capital Markets, commented on the April CGFI index and said, “The difference between rate changes in the Truckload sector versus the Less-than-Truckload sector is consistent with industry reports we have heard from channel checks among carriers in both Canada and the U.S. It is also in line with our view that more capacity has exited the system in the Truckload sector versus the Less-than-Truckload space, leading to tighter industry conditions for Truckload carriers. We believe base rates are too low to be sustainable for both Truckload carriers and LTL carriers.”

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