Truck freight rates grow marginally in April
After seeing a robust increase for two consecutive months, truck freight rates on trunk routes hit a speed breaker in April as the first month of the present fiscal saw only a marginal rise of 1-1.5%.
According to a statement of IFTRT (Indian Foundation of Transport Research and Training), the increase in truck rentals was mainly driven by growth in agri and core sector shipments. Truck freight rates on Delhi-Mumbai-Delhi round trip on a 9-tonne payload truck increased by 1.5% at Rs.87,000 on May 1 when compared with Rs. 85,700 on April 2.
Delhi-Chennai-Delhi round-trip saw a rise of 1.5% at Rs. 136,200 from Rs. 134,200 and Delhi-Ranchi-Delhi rental was up a percentage point at Rs. 89,100. Truck rentals increased by 3-4% and 4-5% during March and February respectively.
“The trucking business is back in growth mode as truck freight rates over the in past three months have been increasing. Fleet operators have been able to pass on diesel price revision smoothly on the back of robust cargo flow, though April is normally lean month for cargo flow,” stated IFTRT.
Meanwhile, truck sales also robust and April month registered a strong growth of 25-30% in Chennai, May 3 when compared with April 2015.
With export cargo offerings begin to stabilize, infrastructure sector spurring demand for heavy trucks and trailers and freight rates remain in positive growth curve, truck sales will continue to record double digit growth during the first quarter of this fiscal, it added.