Truck rentals drop by 1.5-3% in March

This, despite monthly increase in diesel prices

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 1	Rental as on           2nd March 2013 2	Rental as on 1st April 2013 decrease 3	Monthly Rental Avg  for April’11 - March'12 5	Monthly Rental Average for April’12-March'13* 6
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%)