 "Truck rentals up 3-4%")
In September, truck rentals rose three-four per cent on trunk routes, owing to a 10-15 per cent rise in despatches of fruit, vegetables and food items and higher output from small & medium enterprises. The improved cargo offerings on the eve of the ensuing festive season also aided the rise in truck rentals.
In its latest report, the Indian Foundation of Transport Research & Training said the monthly rise of 56 paise a litre in diesel prices had offset the disproportionate rise in truck rentals. “In the last 15 years, whenever a diesel price rise took place, say, by Rs 2-5/litre, the road transport freight shot up far in excess of the weighted impact on truckers’ operating costs,” said S P Singh, senior fellow and coordinator, IFTRT.
The festive season, a bumper kharif crop harvest, more consumer spending and better factory output would ensure truck rentals were buoyant, he added. The annual peak season freight rise by the railways, 15 per cent freight increase on several commodities from October 1 this year till March 31, 2014, would boost the road freight business.
However, a real recovery for the transport sector would only be seen when the manufacturing sector and investment in the infrastructure sector picked up on a sustained basis, he said.
In its latest report, the Indian Foundation of Transport Research & Training said the monthly rise of 56 paise a litre in diesel prices had offset the disproportionate rise in truck rentals. “In the last 15 years, whenever a diesel price rise took place, say, by Rs 2-5/litre, the road transport freight shot up far in excess of the weighted impact on truckers’ operating costs,” said S P Singh, senior fellow and coordinator, IFTRT.
The festive season, a bumper kharif crop harvest, more consumer spending and better factory output would ensure truck rentals were buoyant, he added. The annual peak season freight rise by the railways, 15 per cent freight increase on several commodities from October 1 this year till March 31, 2014, would boost the road freight business.
However, a real recovery for the transport sector would only be seen when the manufacturing sector and investment in the infrastructure sector picked up on a sustained basis, he said.