The Hindu Business Line : Truck rentals may dip to 5% on diesel price cut

Banglore, Dec. 6 Truck rentals are expected to halve to 4.5-5 per cent from ruling rates of 8-10 per cent. Though the softening trend had been witnessed in the last three months due to poor offtake of cargo following the slowing down of production in the manufacturing sector, the steep fall likely to occur has also been attributed to the announcement of cut in the diesel price by Rs 2 a litre.

“No doubt, looking at the slowness in manufacturing sector, the reduction of diesel price should bring down the truck rentals for full load by 4.5-5 per cent on the trunk routes. With the shrinking cargo movement, the retail parcel booking freight rates may also drop by 10 per cent in the coming days,” said the Indian Foundation of Transport Research & Training (IFTRT).

IFTRT said following the hike in diesel price in June, the rental for full truck load shot up by 8-10 per cent. However, it was neutralised in the last three months due to poor availability of cargo.

IFTRT expects the rental to further soften by Rs 1,400 to Rs 34,200 for the route in the wake of the recent diesel price reduction. Similarly, IFTRT hopes the rental would come down by Rs 1,500 on a round-trip of Delhi-Kolkata-Delhi to Rs 35,500. The rates for Delhi-Hyderabad-Delhi route the drop is likely to be by Rs 2,300 to Rs 45,200.

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