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Trucking activity in the Eastern and Southern regions has dropped by 30-40 per cent due to Cyclone Fani which caused devastation in Odisha and parts of West Bengal and Andhra Pradesh.
Drop in demand
“Demand for staples like fruits, vegetables, wheat, and cereals from the rest of country is not enough compensatory load to make up for the sharp drop in cargo offerings from factory gates,” said the Indian Foundation of Transport Research and Training (IFTRT), a research body.
“There is an over-supply of trucks in the market,” added SP Singh, Senior Fellow, IFTRT, based on reports from 75 key trucking and trade centres, and agriculture price marketing committees.
Truck dealers, banks, and non-banking finance companies are witnessing fewer queries compared to last year for fleet replacement due to over-supply situation in the heavy duty truck segment.
Consumers are holding back or reducing purchases of non-durable and high-value durable items like household electronic items and automobiles.
Apart from production cuts, intermediate raw materials are piling up at production centres. The transport trade expects a steep hike in fuel prices after the last round of Lok Sabha elections next week.
“The freight market or truck rentals may remain in uncertain territory till September,” said the IFTRT, citing various factors such as over-supply of trucks, and confusion regarding GST, and E-way Bill.
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