Canadian trucking rates bottoming out

Oct. 19, 2009
The cost of ground transportation in Canada is starting to bottom out, according to new statistics compiled by the Canadian General Freight Index (CGFI). Overall ground rates for Canadian shippers dropped in the first six of the first seven months of 2009, declining a further 1.7% in July, with over-the-road transportation costs down 15.6% in July, when compared year over year, and 9.8% versus the end of 2008

The cost of ground transportation in Canada is starting to bottom out, according to new statistics compiled by the Canadian General Freight Index (CGFI). Overall ground rates for Canadian shippers dropped in the first six of the first seven months of 2009, declining a further 1.7% in July, with over-the-road transportation costs down 15.6% in July, when compared year over year, and 9.8% versus the end of 2008.

Yet according to Alan Saipe, president of Supply Chain Surveys and an analyst of the transportation and logistics industry, trucking rates should not fall any further this year. "Cross border TL and LTL rates declined sharply in July, while domestic rates were more stable … [but] rate declines of this magnitude are not likely to continue,” he said. “We expect freight costs will find a bottom in the fall of 2009 as the economy works its way out of recession.”

According to the most recent CGFI data – a service supported by transportation solutions provider Nulogx and developed in partnership with Saipe – year-to-date reduction in Canadian shipper costs is the result of the combined impact of declining fuel surcharges and reduced base rates charged by carriers.

In July, base rates declined 5.9% when compared to the end of last year, and 2.7% versus the prior month. But that reduction in costs would have been even greater if fuel surcharges hadn't continued their recent upward movement, increasing by 10.5% in July to an average of 12.4% of base freight Costs.

This level however is still lower than the 16.3% average experienced by Canadian shippers at the end of 2008, noted Saipe.

The most recent CGFI results are available at: www.cgfi.ca

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!

Sponsored Recommendations

Report: The 2024 State of Heavy-Duty Repair

From capitalizing on the latest revenue trends to implementing strategic financial planning—this report serves as a roadmap for navigating the challenges and opportunities of ...

Fleet Industry Benchmarks: How does your fleet stack up?

Discover how your fleet compares to industry benchmarks and gain insights from a 2024 Benchmarking Report on maintenance spend, turnaround time, and more. Join us to identify ...

Build a Tolling Program to Manage Toll Fees and Risks

Fleets looking to effectively manage their operational costs should consider their tolling costs. Download the PrePass whitepaper, “Build a Tolling Program to Manage Toll Fees...

Reducing CSA Violations & Increasing Safety With Advanced Trailer Telematics

Keep the roads safer with advanced trailer telematics. In this whitepaper, see how you can gain insights that lead to increased safety and reduced roadside incidents—keeping drivers...