Shippers see slight bump in transport costs

TORONTO — Trucking rates are still scraping bottom, but at least they’re able to pass on surcharges somewhat effectively.

That’s the word from transportation management solutions provider Nulogx, which reports in its latest Canadian General Freight Index (CGFI) that the cost of ground transportation for Canadian shippers increased in September for the first time since April.

The modest hike was attributed primarily to increases in fuel prices and related surcharges from trucking companies.

The September CGFI results show that fuel surcharges assessed by carriers continued their recent upward trend, increasing eight percent month over month, and 26 percent since their lowest point last May.

Though, when the impact of rising fuel surcharges is removed from the CGFI findings, base rates actually declined, dropping an additional 0.6 percent from the August index results.

"Ground freight costs which have trended down for more than a year appear to have bottomed and are starting to increase again," says president Alan Saipe. 

In September, he says, LTL base rates reversed their recent trend and increased.

Although truckload rates declined in September, when base rates for all categories of ground transportation were combined, and the impact of rising fuel surcharges was included, total ground transportation costs increased 0.8 percent.