Truck rentals go up by 12-15% in June as economy recovery gathers pace

Truck rentals in June rose by 12-15 per cent month-on-month on leading trunk routes as economic recovery gained pace, Indian Foundation of Transport Research & Training said on Thursday. Rentals had slumped during the peak of Covid-19's second wave in the months of April and May 2021 as economic activity and consumer spending hit rock bottom. This was despite the fact that diesel and tyre prices rose sharply. However, after states started re-opening after the lockdown and economic activity picked up, factory output jumped 25-30 per cent. The increase in rentals was also aided by export-import trade that increased by 40-50 per cent.

A pick up in infrastructure, construction and road projects has also bumped up truck fleet utilisation rate 20-30 per cent. For instance, the return trip from Delhi to Mumbai has gone up from 2.75 trips last month to 3.50 trips during June 2021. Similarly, the return trip to Delhi from Kandla has gone up from three trips of bulk carriers/ trailers to four. There has been a similar jump in full round trip for open market and most of 75 truck routes. As a result, truck operators have been able to absorb the hike of Rs 3.90 per litre in diesel prices.