SC diktat fuels truck freight rates by 25%

Freight rates to major destinations have gone up in excess of 25 per cent following the recent Supreme Court (SC) directive.

At present, the freight rate from Mumbai to Delhi is quoted at Rs 20,000-21,000 a truck for 9 tonne pay-load section.

The Supreme Court on November 9 had quashed the issuance of gold card/ tokens, which permitted overloading of trucks in excess of the prescribed weight limit, by state governments. The SC has mandated that trucks found on roads carrying illegal excess load would have to offload the cargo crossing the legal limit.

"After the judgement, truckers found it difficult to maintain their profits margin. Therefore, they have no choice but to hike freight charges," said Mohinder Singh Dua, president, Bombay Goods Transport Association.

Such implication was imminent as the judgement led to efficient and optimum utilisation of truck fleet with reduced wear and tear and minimum driver fatigue on highways, thereby, benefiting states in the form of revenue generation through toll and other taxes.

But freight rates have increased despite the substantial decrease in operating cost of vehicle maintenance and tyres by 40-50 per cent. The fuel efficiency of engine has also gone up substantially, experts said.

Surprisingly, freight rates from Delhi have gone down marginally for select destinations.

Sources said Delhi to Mumbai, Pune, Baroda and Kanpur freight rates were quoted lower by Rs 500 each at Rs 16,000, Rs 18,000, Rs 9,000 and Rs 8,000, respectively. Freight charges between Delhi and Kolkata and Jaipur also fell by Rs 500 and Rs 200 to Rs 22,000 and Rs 4,600, respectively.

Charges between Delhi and Hyderabad and Ahmedabad are quoted at Rs 34,000 and Rs 8,500 respectively, while between Indore and Gwalior it is Rs 12,000 and Rs 6,000 from Delhi, respectively.