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Canadian Shippers Paying More for Freight

Global Logistics—August 2011
By Joseph O'Reilly

The cost of ground transportation for Canadian shippers increased markedly between March and April 2011 due to increases in carrier base rates and fuel surcharges, according to data recently published by the Canadian General Freight Index (CGFI).

The CGFI Total Freight Cost Index rose by 1.7 percent in April, the largest one-month gain since July 2010. The Base Rate Index, which excludes the impact of fuel surcharges assessed by carriers, increased 1.1 percent during the same period. Additionally, average fuel surcharges rose from 18.8 percent of base rates to 19.9 percent, and contributed significantly to the rise in overall freight costs.

The increase marked the seventh consecutive month of rising fuel surcharges, which have reached their highest point since November 2008.