Fuel prices driving freight costs higher, CGFI shows

MISSISSAUGA – The cost of ground transportation for Canadian Shippers increased slightly in March when compared to February, according to the Canadian General Freight Index (CGFI).

The latest results of the monthly index suggest the cost increase is largely due to increases in fuel surcharges assessed by carriers.

“Increasing fuel prices continue to be the major factor affecting transportation costs,” said Doug Payne, president and COO of Nulogx. “While base rates are relatively stable to declining, increasing fuel prices are starting to have a real impact on shipping costs.”

The CGFI total freight cost index rose by 0.4% in March over February, while the base rate, which excludes the impact of fuel surcharges, decreased 0.7% 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 sixth consecutive month, and reached their highest point in over two years.