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Brace for an all-round price rise as truck freight rates are set to go up.
Transporters’ bodies plan to raise rates by 12 per cent, responding to the hikes in diesel prices and the higher third party motor insurance premium proposed by the insurance regulator.
The All-India Motor Transport Congress, with 75 lakh truckers and transporters and 40 lakh bus and tourist operators as members , has threatened a country-wide strike from April 1 to oppose the insurance premium hike plan.
As much as 60 per cent of all goods moved is by road.
“Increases in diesel price, escalating toll fees and third party insurance have affected transporters. Commercial vehicles will not be able to absorb this and will pass on the hike to customers,” said Bal Malkit Singh, President, All India Motor Transport Congress.
In February, the Insurance Regulatory and Development Authority invited comments on a plan to increase third party motor insurance premiums by an average 35 per cent.
Truck operators also complain of rising input costs. Ishwar Chander Goel, Chairman (Insurance Committee), All India Transporters Welfare Association (AITWA), concedes the hike in freight rate has not been proportionate to the increase in cost of fuel, spares, lubricants and labour.
AITWA has 515 members, representing 65 per cent of the road transport (goods) business.
Road freight is nearly three times the rail rates. “This is because the Railways’ infrastructure cost is borne by the government,” said Goel. Also, one rail rake can carry up to 3,000 tonnes, while a truck can carry up to 25 tonnes.
>nivedita.ganguly@thehindu.co.in
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