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 3^rd 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 8^th 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.

Results published today by the Canadian General Freight Index (CGFI) indicate that the cost of ground transportation for Canadian Shippers dropped for the fourth consecutive month in December, while Fuel Surcharges assessed by carriers rose to the highest level in over 2 years.

The CGFI Total Freight Cost Index decreased by .4% in January compared to December, while the Base Rate Index, which excludes the impact of Fuel Surcharges assessed by carriers, decreased 1.5%.  The CGFI is still 2.5% above the April low point and 1.8% above last year’s result for the same period.

Notably, average Fuel Surcharges increased substantially for the fourth consecutive month from their September low of 13.0% to 16.3% in December.

“The increase in fuel surcharges is continuing to offset the decreases in base rates being charged by carriers”, commented Doug Payne, President & COO Nulogx.  “As fuel prices continue to increase we envision escalating transportation costs in the coming months for Canadian shippers” 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.

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More detailed information is also available to all Nulogx customers.

The CGFI Total Freight Cost Index decreased by .8% in October compared to September, while the Base Rate Index, which excludes the impact of Fuel Surcharges assessed by carriers, decreased .92%.  The CGFI is still 7.5% above the April low point and 5.3% above last year’s result for the same period.

Notably, average Fuel Surcharges increased by 6% to 13.77% of Base Rates when compared to September results.  Fuel surcharges increased for the first time in 5 months, and are beginning to reflect the higher cost of diesel fuel for trucking companies.

“We are just starting to see the impact that higher fuel prices will have on shippers and trucking companies, and we expect to monitor this trend through the winter months” comments Doug Payne, President & COO of Nulogx.  “As for the slight decline in Base Rates, this is not unexpected given the consecutive monthly increases we have seen since last April,” adds Payne.

For full details on the CGFI please visit: www.cgfi.ca

The CGFI Total Freight Cost Index increased by .4% in September compared to August, while the Base Rate Index, which excludes the impact of Fuel Surcharges assessed  by carriers, also increased by .7%.  Average Fuel Surcharges remained essentially unchanged at 13% for the month.  This is the fifth consecutive monthly increase since the index reached a low point in April 2010.

“Prior increases in overall freight costs for Canadian shippers were primarily driven by the Domestic Truckload sector, however we are now seeing increases in Transborder LTL costs which is contributing to this trend” comments Doug Payne, President Nulogx.

According to Jason Granger, Equity Analyst, BMO Capital Markets, “This is consistent with what we have seen in previous cycles. Truckload pricing appears to be leading LTL pricing in the recovery as Truckload capacity is quicker to exit the system. However, as the pace of the economic recovery cools, supply pressure, as opposed to demand growth, could arguably be a more significant near-term catalyst for further improvements in industry pricing. Driver shortages, equipment shortages and business failures could all contribute to tighter supply conditions.”

For full details on the CGFI, a transportation index, please visit: www.cgfi.ca

Overall Freight Costs increased by 3% in May when compared to April. Base Rates, which exclude the impact of Fuel Surcharges assessed by carriers, also increased by 2.7% with Average Fuel Surcharges increasing by 2.9% from the prior month.

“Akin to April’s results, we are seeing increases in the truckload sector which is likely more sensitive to changes in capacity demand,” says Dr. Alan Saipe, President, Supply Chain Surveys Inc.  “This could be an indication of what may come in the future for LTL rates.”

“With the continuous volatility in the rates, those in the transportation industry will need to be careful when planning ahead for 2011 and must consider all effecting factors before doing so.” Doug Payne, President of Nulogx.

Join Nulogx and SCL at our upcoming Breakfast Seminar September 14^th to hear Dr. Alan Siape 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

Click here to register today!

Results published today by the

Overall freight costs decreased by 2.6% in March when compared to February. Base Rates, which exclude the impact of Fuel Surcharges assessed by carriers, decreased by 1.9% with Average Fuel Surcharges also decreasing by 4.5% from the prior month.

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.

Base Rates, which exclude the impact of Fuel Surcharges assessed by carriers, also increased by 2.1% with average Fuel Surcharges increasing 1.6% from the prior month; both balancing similar declines during the prior month.

“February’s results are essentially at the same level as the last quarter of 2009 with less than a 0.5% overall variance“says Dr. Alan Saipe, President of Supply Chain Surveys Inc.

“These results confirm our opinion that rates are stabilizing within the marketplace as both shippers and carriers adjust to the current economic situation,” says Doug Payne, President of Nulogx.  “We expect that cost reductions resulting from market factors will become more elusive for shippers in the coming months” continues Mr. Payne.

Overall freight costs fell by 1.2% in January when compared to December.   Base Rates, which exclude the impact of Fuel Surcharges assessed by carriers, fell 1.4% from December.   Average Fuel Surcharges also fell .5% from 14.20% in December to 13.70% of Base Freight costs in January.   Offsetting these declines were slight increases in Other Accessorial charges assessed by carriers.

To view the results, sign up online at http://www.cgfi.ca to receive the results to your inbox the last Wednesday of every month.

By JACK KOHANE
November 9, 2009

Here is an excerpt from Mr. Kohane’s recent Special Report hailing CGFI as “leading edge” at this year’s 23rd Annual Conference on Transportation Innovation and Cost Savings.

New and leading edge at this year’s conference was the Canadian General Freight Index, just launched by Nulogx Inc., a Toronto-based transportation management solutions company. Scott Irvine, the company’s vice-president of business development, said that the CGFI is the one index that tracks freight prices in Canada. “It is generated from a database of over three million truck freight transactions and $1 billion in spend,” he said. “Results include data from over 100 operating entities and almost 1,000 carriers. Its benefits are that it can help you compare your company to the market out there.”

According to Mr. Irvine, the strengths of the CGFI (www.cgfi.ca), which was developed with the assistance of Dr. Alan Saipe of Supply Chain Surveys Inc., are that its information is reviewed monthly for validity and customers can contribute data in exchange for detailed analysis. Although the public has access to high-level information, Nulogx customers receive more detailed analysis in exchange for contributing their data to the index.

Its limitations, Mr. Irvine noted, include: the information is restricted to “general over-the-road freight”; it excludes bulk, liquid and other specialty transportation services; and it does not separate the contract versus the spot markets.

Overall, the CGFI (published the last Wednesday of every month) is a useful tool that can be used to benchmark performance, develop operating budgets, and assist in negotiating agreements, Mr. Irvine touted. “It enables buyers and sellers of transportation to make important decisions based on facts not previously available. It offers a good statistical estimate of actual market behaviour, highlighting changes in the prices paid for freight transportation by Canadian shippers.”

The Full Article can be read here:  SPECIAL REPORT: 23rd Annual Conference on Transportation Innovation and Cost Savings