After 10 quarters of increase since October 2009, the April 2012 truck rentals on trunk routes witnessed a major drop — by three per cent to five per cent. Reasons: low arrival of summer fruits and vegetables, dislocation in wheat procurement and a poor flow of despatches from the manufacturing sector.
This January and February witnessed a five to six per cent increase in truck rentals, while March 2012 remained steady.
The Indian Foundation of Transport Research and Training (IFTRT) said there had been about 15 per cent less load offerings due to dislocation in wheat procurement. This, its monthly report noted, was due to frequent heavy hailstorms in Punjab, Haryana and Western Uttar Pradesh, besides unseasonal rain in some parts of Madhya Pradesh.
The situation of lower cargo offerings from a large number of trucking centres in several states was due to a lack of support in various manufacturing areas. This put pressure on the truck fleet, waiting for two to three days for return cargo to their home destination.
“The depression in truck rentals during April is also being attributed to steep increase in sale of high-tonnage multi-axle trucks during the fourth quarter of the financial year ending March 31,” said S P Singh, senior fellow with IFTRT.
“This was because vehicle dealers/finance companies offered substantial discounts, pre-Budget priced trucks and concessional auto finance cost,” he added.
According to Singh, the drop was duly anticipated in the market.
Singh said the freight market for full truck load might continue to be plagued by stress and uncertainty. The proposed increase in diesel price might refix the new levels. However, taking movement during the entire year ending March 31, the estimated freight moved by road touched 4,050 million tonnes (mt) as against 3,730 mt in the corresponding period last year. This meant a descent of eight per cent.
