Truck freight rates touched a two-year high in August. Rates on three major routes _ Delhi-Mumbai, Delhi-Calcutta and Delhi-Chennai _ were higher than in August 1996 and 1997.
Freight rates during the first six months of the current fiscal have shown an increase over rates in corresponding months of the previous year.
Sources in the commercial vehicle industry, however, do not attach much significance to the increase.
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"We do not think this increase signals a recovery. Factors like floods and the festive season have caused the increase,'' they said.
According to sources, floods in many parts of the country had forced fleet operators to pull out.
This resulted in a scarcity of trucks which, in turn, pushed up freight rates.
"The fundamental position in the industry is still one of oversupply. This has not changed,'' they said.
The increase this year just about takes care of inflation and was not a real pick-up in demand, fleet operators in Chennai said.
On the Delhi-Mumbai route, freight rates improved to Rs 9,500 during August from Rs 7,814 the previous year. Similarly, rates on the Delhi-Chennai route increased to Rs 21,000 from Rs 14,733.
Rates in the Delhi-Calcutta route staged the largest gain shooting up to Rs 17,000 during the month from Rs 11,000 in the previous year.
Rates on all three routes during August have also shown an increase over 1996 rates. However, rates during the April-July period have been lower than during the corresponding months in 1996-97.