Truck rentals recover 18-20% in December: Industry body

“With toll exemption being stopped w.e.f. December 2, 2016 and Rs 1.79/litre diesel price hike along with improvement in cargo offering by 10-15 per cent, truck rentals have recovered by 18-20 per cent in December 2016.”

        Truck rentals recover 18-20% in December

Truck rentals have recovered by 18-20 per cent in December, last year from the previous month low of 25-30 per cent on trunk routes on the back of resumption of toll collection on national highways last month and improvement in cash flow in the market, IFTRT said.

“With toll exemption being stopped w.e.f. December 2, 2016 and Rs 1.79/litre diesel price hike along with improvement in cargo offering by 10-15 per cent, truck rentals have recovered by 18-20 per cent in December 2016 from the previous month low of 25-30 per cent on trunk routes,” Indian Foundation of Transport Research and Training the apex body tracking truck industry in India said in a statement.

In view of toll exemption, post demonetization, despite hike in diesel price, truck rentals plummeted by 25-30 per cent on trunk routes as businesses virtually came to a standstill, resulting in 40 per cent drop in fleet utilization due to slack consumer spending and dispatches as toll on highways is considered to be 15-20 per cent of variable cost of a trucker, it said.