For-hire Motor Carrier Freight Services Price Index (FHMCFSPI)

Detailed information for fourth quarter 2007

This survey measures the monthly price movement for the For-hire Motor Carrier Freight industry. It is an important tool for providing a better deflator to the System of National Accounts and a more accurate measure of productivity from the trucking sector. The estimates are produced on a quarterly basis.

Data release - March 19, 2010

• Questionnaire(s) and reporting guide(s)
• Description
• Data sources and methodology
• Data accuracy

Description

The For-hire Motor Carrier Freight industry is a vital part of the Canadian economy and the services that the industry provides is crucial for an effective and efficient flow of goods. The For-hire Motor Carrier Freight Services Price Report survey collects prices of service/shipment transactions which are essential to the creation of a price index for this sector. The index measures the movement of prices for the services that are provided by the trucking industry.

The For-hire Motor Carrier Freight Services Price Index can be used by businesses to measure their performance against industry standards, to plan marketing strategies or to prepare business plans for investors. Governments use index data to develop national and regional economic policies and to develop programs to promote domestic and international competitiveness. The data are also used by trade associations, business analysts and investors to study the economic performance and characteristics of the industry.

The index data provides a better deflator for Statistic Canada's System of National Accounts for this sector of the economy.

Statistical activity

These indexes are a part of the Services Producer Price Index program (SPPI) at Statistics Canada.

The SPPI program develops and produces price indexes for a wide range of business service categories. This initiative fills an important data gap in the area of economic statistics and has resulted in a more comprehensive set of service price indexes. It also allows Statistics Canada to produce more accurate estimates of real value added of the Gross Domestic Product and changes in productivity.

Reference period: The time period for which the FHMCFSPI equals 100; currently this is the year is 2007.

Collection period: Data are collected quarterly for monthly prices the quarter following the reference quarter.

Subjects

• Prices and price indexes
• Service price indexes
• Transportation
• Transportation by road

Data sources and methodology

Target population

The target population for this survey is all establishments in the Trucking Industry that were classified under the North American Industry Classification System (NAICS=484) Truck Transportation, generating more than $1,000,000 annual revenue.

It is expected that the establishments with less revenue are owner-operators and their revenue is counted within the larger enterprises as they are contracted to do hauling by the larger enterprises.

• Additional documentation

Instrument design

The For-hire Motor Carrier Freight Services Price Report questionnaire was developed at Statistics Canada and was reviewed and tested in the field in both official languages by the Questionnaire Design Resource Centre (QDRC). In the course of developing the questionnaire, Statistics Canada consulted with a number of large carrier companies.

Sampling

This is a sample survey with a longitudinal design.

Sample and weighting information is derived from the transportation activity data obtained through the Business Register Frame.

The sample consists of trucking businesses which were selected based on establishment revenue and stratified by 5-digit NAICS. Each NAICS stratum was further stratified by take-all (large units) and take-some (smaller units).

Data sources

Responding to this survey is mandatory.

Data are collected directly from survey respondents.

Collection is quarterly for monthly pricing and the survey is conducted in two phases. The first phase/quarter consists of identifying and collecting baseline information of a typical shipment/services by the carriers in our sample. A questionnaire was sent to each respondent and telephone follow-up was conducted.

In the second phase/quarter, respondents are sent another questionnaire which includes service specifications given by respondents from the first phase and they are asked to provide monthly specific shipment price information for the commodity groups/services offered by the business. In this phase, respondents are also asked to identify the main reason for any price change.

View the Questionnaire(s) and reporting guide(s) .

Error detection

During data collection on-line edits are performed to check for consistency and to ensure that the captured information is numerically valid and that all data fields are completed. Extensive processing procedures are in place to identify outliers, to ensure that the data makes sense and that there are no unexpected fluctuations in prices from period to period. Records failing these edits are subject to manual inspection and possible corrective action.

Imputation

Non-response imputation for missing prices is imputed using the averages of designated cells.

Estimation

Estimates are produced by calculating a weighted average of price relatives by industry, which are chained together to form an index series. The For-hire Motor Carrier Freight Services price index is a national index that uses establishment revenue as its weighting source, updated when possible.

Quality evaluation

The data is subject to collection and processing validations on all key variables and most non-essential data. Analysis is also performed at the index level at various aggregation stages. Qualitative quality assessment is done using an internationally developed services producer price framework that considers aspects such as the type of price being used, timeliness and relevance.

Disclosure control

Statistics Canada is prohibited by law from releasing any information it collects which could identify any person, business, or organization, unless consent has been given by the respondent or as permitted by the Statistics Act. Various confidentiality rules are applied to all data that are released or published to prevent the publication or disclosure of any information deemed confidential. If necessary, data are suppressed to prevent direct or residual disclosure of identifiable data.

Collected data are converted to price indexes and data are released as such, so that it is not possible to identify the suppliers of raw prices.

Revisions and seasonal adjustment

Seasonal Adjustment is not expected to occur. This is a revisable series.

Data accuracy

This survey uses a methodology designed to control errors and to reduce their potential effects on estimates. However, the survey results remain subject to errors, both sampling and non-sampling error. Sampling error results when observations are made only on a sample and not on the entire population. All other errors arising from the various phases of a survey are referred to as non-sampling errors. For example, these types of errors can occur when a respondent provides incorrect information or does not answer certain questions; when a unit in the target population is omitted or covered more than once; when a unit that is out of scope for the survey is included by mistake or when errors occur in data processing, such as coding or capture errors.