February 2022 brought some positive news for the trucking sector as freight rates on trunk routes saw a marginal rise of 1.5-2 per cent on the back of improved cargo offerings. 

The rentals have consolidated a little with a1.5-2 per cent rise on trunk routes as the cargo offerings from the manufacturing sector, including MSMEs, export-import businesses, and merchandise transportation stayed upbeat during the month. The Agri cargo, including fruits and vegetables into APMCs, improved by 5-10 per cent. Also, with no ncrease in diesel prices helped .fleet utilisation stabilising tat 80-85 per cent%on 75 key trunk routes across the country, according to IFTRT (Indian Foundation of Transport Research and Training) a statement  

Truck rental on Delhi-Mumbai-Delhi round trip on a 9-tonne payload  was up 2 per cent to ₹.141,800 (on March 1) from ₹139,000 (on February 1). Delhi-Chennai-Delhi saw a rise of 1.5 per cent to ₹159,900 from ₹157,500 and Delhi-Raipur-Delhi trip rental was also up 1.5 per cent to ₹129,400. 

Demand for CNG-run vehicles

Due to better freight rates, there was a rise in sales of new medium and heavy vehicles with a preference for CNG-run cargo models. 

With declining Covid cases, opening up of economic activity and the budget focussing on infra development, it is hoped that the freight market and truck sales to l remain buoyant. 

However, geopolitical events like the Russia-Ukraine war might have an inflationary impact on the global economy. The costlier fuel, metals and other essential items imported may also lead to a large scale dislocation and adversely impact consumer spending and Capex plans of India Inc. The next quarter is crucial for India’s logistic business , added IFTRT. 

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