AIMTC Pushes for Minimum Freight Rates to Stabilize Trucking Industry
The AIMTC, which represents transporters nationwide, has officially suggested to the Central Government the setting of minimum freight rates for every type of commercial vehicle. This project seeks to tackle the continuing issues caused by unhealthy rivalry in the transportation industry, which has been made worse by the absence of a uniform freight system.
AIMTC has compared the current systems for buses and auto rickshaws in their proposal, highlighting the necessity of a comparable framework for the trucking sector. “We have submitted a proposal to the Centre to institute minimum freight rates for all types of commercial vehicles. Currently, there are no price ceilings, leading operators to accept loads at any price just to sustain their operations. This practice not only undermines healthy competition but also adversely affects the entire sector,” explained AIMTC President Amrit Madan.
Madan further stated that a uniform pricing structure would create a more equitable environment for competition within the trucking segment. The AIMTC is open to discussions with senior officials regarding this proposal, hoping to engage in constructive dialogue that leads to a viable solution for the industry’s woes.
Transporters have observed that the peak business seasons for the trucking sector typically coincide with festivals and weddings, resulting in a surge of loads from various industries. However, this year has seen a notable delay in bookings as the festive season approaches. Also, reports indicate that transportation bookings from industrial and trade segments have remained relatively stable throughout October, reflecting a trend consistent with previous months.
The lack of a set minimum freight rate has led companies to participate in discounting battles, leading to a declining pattern that puts their earnings and the overall well-being of the transportation sector at risk. The AIMTC aims to promote fair competition by supporting fixed freight rates. Their goal is to establish a fair and enduring market for every transportation provider, crucial for the industry’s long-term success. However, the AIMTC aims to create a healthier economic environment for operators and the overall economy by introducing standardized rates.
Source By:- https://auto.economictimes.indiatimes.com/
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