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				Fuel prices driving freight costs higher, CGFI shows
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					Posted: 
					
						May 27, 2011 11:05 AM
					
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					Last Updated: May 31, 2012 02:51 PM
				
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				<p>MISSISSAUGA &ndash; The cost of ground transportation for Canadian Shippers increased slightly in March when compared to February, according to the Canadian General Freight Index (CGFI).</p>
<p>The latest results of the monthly index suggest the cost increase is largely due to increases in fuel surcharges assessed by carriers.</p>
<p>&ldquo;Increasing fuel prices continue to be the major factor affecting transportation costs,&rdquo; said Doug Payne, president and COO of Nulogx. &ldquo;While base rates are relatively stable to declining, increasing fuel prices are starting to have a real impact on shipping costs.&rdquo;</p>
<p>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.</p>
<p>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.</p>
<p>Fuel surcharges increased for the sixth consecutive month, and reached their highest point in over two years.</p>
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