Truck rentals experience consolidation in February
February 2022 brought positive news for the trucking industry as freight rates on major routes saw a marginal increase of 1.5-2% due to improved freight offerings.
Rentals firmed up a bit with a 1.5-2% increase on major routes, cargo offers from manufacturing including MSMEs, import-export businesses and freight transport remained buoyant during the month. Agricultural freight, including fruits and vegetables in APMCs, improved by 5-10%. Also, with no increase in diesel prices, fleet utilization has stabilized at 80-85% on 75 major routes across the country, according to a statement from IFTRT (Indian Foundation of Transport Research and Training). .
Hire of trucks on the Delhi-Mumbai-Delhi round trip with a payload of 9 tons increased by 2% to ₹141,800 (on March 1) from ₹139,000 (on February 1). Delhi-Chennai-Delhi saw an increase of 1.5% to ₹159,900 from ₹157,500 and the Delhi-Raipur-Delhi trip rental also increased by 1.5% to ₹129,400.
Demand for CNG Vehicles
Due to better freight rates, sales of new medium and heavy vehicles have increased, with a preference for CNG-powered freight models.
With the decline in Covid cases, the opening of economic activity and the budget focused on infrastructure development, it is hoped that the freight market and overseas truck sales will remain buoyant.
However, geopolitical events like the Russian-Ukrainian war could have an inflationary impact on the global economy. Imported more expensive fuel, metals and other essentials can also lead to large scale dislocation and negatively impact India Inc’s consumer spending and Capex plans. Next quarter is very crucial for business logistics in India, IFTRT added.
March 01, 2022