The Hindu Business Line : Truck rentals move up 4-5 pc on trunk routes

DURING the last fortnight, truck rentals on trunk routes have moved up by 4-5 per cent following the September 6 diesel price hike of Rs 2 per litre. In absolute terms, the fare hike is in the range of cost increase due to the diesel hike per round trip.

By and large, the truck rentals have moved up in tune with the actual increase in diesel price, according to the Indian Foundation of Transport Research and Training.

Meanwhile, the demand for trucking services have also gone up with cargo offerings moving up by 10-15 per cent. This increase in demand is due to the buoyant festival season, an over 10-per cent growth in the manufacturing sector and a 25-per cent foreign trade growth along with the arrival of the bumper apple crop in the market. Thus, truck rentals are expected to firm up over the next two and a half months, said the foundation.

Similarly, during the last three years (June 2002 - June 2005), truck rentals on trunk routes went up by Rs 450 per tonne per round trip against the Rs 400 per tonne increase in diesel price (per round trip).

Truck operators were also benefited by the reduction in finance costs (with interest rates down to 4 per cent from 8 per cent) during June 2002 - June 2005 along with fairly stable truck tyre prices and other major consumables.

Meanwhile, the research body says goods booking agents carry enough cushion to absorb the increased transportation cost due to the rise in truck rentals after the September 6th diesel price hike.

During the three-year period, retail parcel rates (as charged by good booking agents who in turn book trucks) have moved up by Rs 20 per quintal against the Rs 4.50 per quintal increase in truck rentals.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Coimbatore airport to resume night operations from today

Jetstar Asia to begin Bangalore-Singapore flights

GTECH plea for direct flights to Chennai, Bangalore

Feedback Ventures to advise AAI

Italian cos to be `active' in airport modernisation

`Hard for ports to generate resources with meagre surplus'

Airports, ports to get risk management module

`AAI employees strike will be total'

Eastern Railway freight, passenger revenues up

Cancer kids ride metro

Truck rentals move up 4-5 pc on trunk routes

Indian Roads Congress to develop standards for 4-lane highways