Freight rates on key routes shoot past pre-lockdown level on diesel hike

After being subdued for several months, freight rates on key trunk routes have gone up by 10-15 per cent (see chart) following a steep hike in diesel prices. It surpassed rates before the lockdown, according to the Indian Foundation of Transport Research and Training (IFTRT).  

The hike in diesel prices have a direct correlation with the freight rates with fuel as a percentage accounting for more than 65 per cent of the variable operating costs for transporters.

On June 26, both petrol and diesel prices crossed the Rs 80-mark in Delhi, going up by 21 paise and 17 paise, respectively. It was