This is one load that transporters don’t want India Inc to lighten…!!!

Bal Malkit Singh, advisor and former president of All India Motor Transport Congress, said the road transport industry is losing revenue of Rs 4,500 crore every day.

This is one load that transporters don’t want India Inc to lighten!!!

demand slump and weakened purchasing power across sectors after the government’s shock demonetisation move has hit road transporters across the country and truck loads for the country’s top transporters such as Transport Corp of India has declined by 30 per cent-50 per cent, senior company executives said.

The segments to be hit the most are automobiles and FMCG, they added.

“Part truck loads—usually comprising of parcels that have FMCG products are down by 70 per cent while full truck loads that have agri-products are down by up to 50 per cent,” said SP Singh, a senior fellow at the Indian Foundation of Transport Research and Training.

Bal Malkit Singh, advisor and former president of All India Motor Transport Congress, said the road transport industry is losing revenue of Rs 4,500 crore every day.

Prime Minister Narendra Modi on Nov 8 declared all Rs 500 and Rs 1,000 currency notes would cease to be legal tender from midnight in the government’s so-called war against black money and forged currency.

This has sucked up liquidity from the markets across the nation. The immediate impact of the move was that trucks on highways were stuck as many petrol pumps—otherwise instructed to accept obsolete notes for a period–state highways and roadside eateries stopped accepting cash payments in the form of the old notes. ET reported the impact on Nov 14.

The government has been extending deadlines and has rendered national highways toll free easing the congestion to some extent. But the demonetisation move has hit purchasing power.

Mandeep Dhingra, MD of Delhi Gujarat Freight Carriers told ET that many manufacturers have announced shut downs for November and December and he expects things to improve only by February.

“If the loads are not available what do I carry? The business on the automotive front has dropped close to 70 per cent and FMCG goods transportation is down 30 per cent,” said Dhingra.

Nitesh Aggarwal, vice president at Darcl Logistics, said revenues are down by 25-30 per cent as the dispatches have reduced significantly. Pranav Goel, founder of Porter, a marketplace for last mile logistics, said volumes in the segment have reduced by 50 per cent-60 per cent.

Source: https://goo.gl/4Avgmf