Truck rentals up 2-3% on trunk routes in February

Truck rentals rose two-three per cent on trunk routes in February due to the five per cent increase in freight charges announced in the railway budget, improvement in cargo offerings and cumulative diesel price hike of Rs 1 per litre. The current quarter is likely to witness the same trend due to year-ending pressure of despatches from factory output across the country.

According to a report by the Indian Foundation of Transport Research and Training (IFTRT), truck rentals during the boom period ending March 2012 from the recovery period October 2009 rose 32-35 per cent; it fell 12-14 per cent during the April-September 2012 period. Again, the truck rentals increased by five-six after diesel price increase in September 2012.

This trend continued till mid-November 2012 with another rise by three-four per cent on trunk routes due to 15-20 per cent rose dispatches from the manufacturing sector and a rise in arrival of fresh fruits and vegetables in agriculture produce market committees.

The second half of November 2012 witnessed a three-four per cent drop in truck rentals and December saw a flat phase of truck rentals. This trend continued till January 2013 despite a 50 paise increase in diesel price on January 16.

According to IFTRT senior fellow and coordinator S P Singh, the finance minister's announcement on the establishment of an independent regulator for roads/highways and the allocation of Rs 3,000 crore in April-September 2013 for road projects will have a positive impact on sentiments of road transport.