Slowing down of the Indian economy is reflected in truck rentals. In November, the truck rentals on the trunk routes dipped by 4-5 per cent after cargo offerings slumped in the last fortnight after peaking during Diwali festival.
Indian Foundation of Transport Research & Training in its report said the gains made during October by way of 3-4 per cent rental increase were eroded although continuous support of cargo availability from wheat, rice export and sustained domestic transportation of cement, tiles, sanitary material, pharma, FMCG goods and increased arrival fresh fruits & vegetables stemmed the further fall in truckers' revenue.
Foundation's senior Fellow and coordinator SP Singh said the truck rentals during November started falling in the second half of the month after stable period of first fortnight of Diwali festival cargo movement. The saving grace for the truckers has been increased cargo offering from wheat and rice exports, sustained domestic transportation of cement, tiles, sanitary material, pharma, FMCG goods and increased arrival fresh fruits & vegetables stemmed the further fall in truckers' revenue.
According to Singh, the SME manufacturing sector, which provides 70% of the cargo coming from entire manufacturing sector, is passing through tough times due to pile up of inventories and is adversely affecting the truckers dependence on SME sector. "In a positive development, the truckers are putting on hold induction of new trucks and fleet expansion despite heavy inducements coming from vehicle manufacturers and therefore, indiscriminate fleet expansion by operators has come to a halt because truckers have fresh memories of 2008-09 economic slow down and resultant crisis in the truck transport business," Singh noted.
Singh said the truckers were able to pass on the increased cost of diesel price hike of Rs 5- per litre by way of 5-6 per cent jump in truck rentals in September. However, furher freight increase of 3-4 per cent attained in October has more than been eroded in 2nd half of November by way of truck rental drop by 4-5 per cent.
Singh has sought the government's intervention to increase expenditure on infrastructure sector and encourage consumer spending to infuse life in the economy and subsequently help the truck transport, which moves more than 80 per cent of the cargo in the country. At present, he informed that there are over six million trucks and 2.5 lakhs transport firms in the country handling almost an annual freight volume of Rs 4,00,000 crore.
