OTTAWA, Ont. — Shippers expect modest growth in shipments by most modes in 2011. They also expect to be faced with small increases in rates and fuel surcharges. These are some of the findings of the sixth annual benchmarking survey undertaken by Dr. Alan Saipe of Supply Chain Surveys Inc. for CITA, with the sponsorship of RBC Capital Markets and the support of Transport Canada and Nulogx Inc.
The annual survey is designed to give the CITA membership benchmarks with which to assist in
evaluating their transportation and logistics activities.
A few of the highlights are:
Shippers were more focused on cost reduction and profit growth this year than in recent years
Shippers found that Service quality in most modes improved in both 2009 and again in 2010.
A factor in quality gains will be volume reductions compared to 2008. Modal focus in this year’s survey was on rail carload and on truckload service. The survey group reported:
to the question about their rail carriers “operating effectively”, 55.6% “agree somewhat”, 11.1% were neutral and 33.3% disagreed;
to the question about their TL carriers “operating effectively”, 33.3% “agree completely”, 60.0% “agree somewhat” and 6.7% were neutral . None disagreed.
Regarding volumes and freight pricing, the survey group reported:
on average, volumes were up in 2010 over 2009 in most modes and are forecast to go up in all modes but intermodal in 2011; intermodal volumes are expected to remain flat, on average rates were up slightly in all modes except courier in 2010, and the respondents expect increases in all modes in 2011.
The report also provides benchmark information for shippers on items such as transportation costs as a percent of sales revenue. The environmental section indicates a growing trend among shippers in managing environmental issues.
It also includes a summary of the Nulogx Canadian General Freight index (CGFI) which
indexes changes in Truckload (TL) and (LTL) rates. It shows average rate increases in 2010 of 7.3% and that Fuel surcharges were up from 12.6% of freight charges in 2009 to 13.6% in 2010. Looking to 2011, Nulogx expects to see 2011 trucking rate increases in the 3% to 5% range.
The survey report is available for sale for $99 and can be ordered through the contact below.