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Truck rentals drop by 1.5-3% in March

Last Updated: Mon, Apr 01, 2013 20:52 hrs
An employee sorts Indian currency notes at a cash counter inside a bank in Agartala

The Indian Foundation of Transport Research & Training (IFTRT) stated today that truck rentals had dropped 1.5-3 per cent on trunk routes in March.

The rentals have dropped, noted IFTRT in its report released today, because of a 50 paise per litre monthly increase in diesel prices.

IFTRT  further said the 10-15 per cent fall in cargo arrivals from fruit and vegetables and factory output  remaining flat also triggered a decline in truck rentals.     

In March, 2012, at the end of FY12, the diesel price hike during the year was Rs  3 per litre. In March, 2013, at the end of FY13, the diesel price has gone up to Rs  6.50 per litre. If the diesel price was identical with  last year's, the truck rental drop actually would have been much higher, IFTRT said in its study.

Truck Rental Movement
The fiscal 2012-13 (April 2012 –March 2013 period) has turned out to be negative for truck operators, with an overall drop in truck rentals by 7-8 per cent in the last four quarters as despatches from the manufacturing sector, import-export trade and the infrastructure sector displayed negative performance leading to under-utilisation of the national truck fleet.

Although, the railways had increased parcel freight charges by 20 per cent from June 2012 and had announced a 5 per cent increase in general freight charges in the rail budget, it has failed to stop the slide in the truck rentals market during the fiscal ending March 2013.

The traditionally peak cargo offering month of March, this year, has failed in generating additional cargo offerings from the manufacturing sector as factory output virtually remained flat with small and medium manufacturing units (SMEs) generally providing 50 per cent of the cargo offerings to truckers. This displayed a negative flow of goods traffic and thereby led to 1.5-3 per cent drop in truck rentals on trunk routes.

IFTRT's senior fellow & coordinator, SP Singh hoped that the first quarter of the current fiscal may help the truckers to get better employment with the beginning of the wheat crop harvesting season and the arrival of summer fruits and vegetables in the agriculture produce market committees (APMCs).

FULL TRUCK  LOAD (16.2 TON G.V.W.) rental (Rs per round trip)
Source : IFTRT

  Trunk Route Rental Movement ( per Round Trip)
Round Trip/  9 ton pay load
Rental as on           2nd March 2013
Rental as on 1st April 2013 decrease
Monthly Rental Avg  for April'11 - March'12
Monthly Rental Average for April'12-March'13&
Delhi - Mumbai-Delhi 55600 54800 (-1.6%) 55900 52900 (-5.4%)
Delhi - Nagpur-Delhi 52500 51000 (-3%) 54100 51000 (-5.7%)
Delhi - Kolkata-Delhi 57200 56300 (-1.6%) 57100 54500 (-4.6%)
Delhi - Guwahati-Delhi 98400 96400 (-2.1%) 100800 95500 (-5.2%)
Delhi - Hyderabad-Delhi 76200 74700 (-2%) 75800 73500 (-3.0%)
Delhi - Chennai-Delhi 85700 84000 (-2%) 88100 82000 (-6.9%)
Delhi - Bangalore-Delhi 85000 83300 (-2%) 86200 82000 (-4.9%)
Delhi - Ranchi-Delhi 55800 54000 (-3%) 55500 53000 (-4.5%)
Delhi – Raipur-Delhi 52500 51000 (-2.9%) 53600 51000 (-4.9%)
Delhi - Kandla-Delhi 42500 41900 (-1.5%) 41300 39500 (-4.4%)
Delhi - Bilaspur-Delhi 52400 51300 (-2%) 53300 50300 (-5.6%)

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