Truck cos report 30% drop in monthly revenue
Despite extra liquidity available with financers, there is lack of reliable fleet owners with dependable cash flows to take the truck finance.
Chennai: Truck operators are reporting a 25%-30% drop in monthly revenue with truck fleet utilization on trunk routes facing major problems in June 2019.
There has been around “15%-20% less arrival of fruits and vegetables into the APMCs across the country and factory gates at leading industrial hubs releasing almost 25% less cargo for different trunk route destinations,” said a report from Indian Foundation for Transport Research and Training.
Truck rentals, having touched a low during May 2019, have remained range bound by +0.5% , it added. The Delhi-Mumbai-Delhi route has seen an 11.4% drop in freight rates while Delhi-Chennai-Delhi and Delhi-Bengaluru-Delhi are both down 13%. Delhi-Hyderabad-Delhi is down 12% and Delhi-Kolkata-Delhi 11%.
“Despite extra liquidity available with financers, there is lack of reliable fleet owners with dependable cash flows to take the truck finance and transporters considered to be blue chip till last fiscal are unable to meet EMIs and the Q2 of current fiscal may witness restructuring of repayment schedule for an existing truck loan contracts by fleet owners with NBFCs / auto finance banks,” said SP Singh, coordinator, IFTRT.