Truck freight rates up 3-4% in March
The last month of fiscal 2016-17 appears to have brought many cheers for the trucking industry.
While Supreme Court ban on sale of BS III trucks led to huge discounts for new purchases during the last 2-3 days of March, truck freight rates also went up 3-4% on trunk routes during the month with improvements in cargo flow from agri and manufacturing sectors.
After three years, March saw its best performance as cargo offerings from agri sector, factory output and exports displayed an increase of 15-20%, 8-10% and 4-5%, respectively, in full truck load despatches and that resulted in an increase in truck rentals by 3-4% with better fleet utilisation, according to New Delhi-based IFTRT (Indian Foundation of Transport Research and Training).
Truck freight rates on Delhi-Mumbai-Delhi round trip on a 25-tonne truck increased by 4% at ₹85,000 on April 1 when compared with ₹ 81,700 on March 2. Delhi-Chennai-Delhi round-trip also saw a rise of 4% at ₹1,25,500 from ₹ 120,500 and Delhi-Ranchi-Delhi rental was up 3 per cent point at ₹ 86,500.
Though, the general economic scenario appears to be improving, sales of heavy trucks conforming to BS IV norms will be sluggish during the first quarter of 2017-18.
Since fleet operators would have taken advantage of huge discounts offered for BS III trucks by March 31, new purchases in the current quarter is likely to be tepid, felt IFTRT.
Tag Keyword: Trucking Industry , Cargo , Indian Foundation of Transport Research and Training , Sales , Freight Rates