Live Markets »News & Advice»Economy News»Economy News Details
Economy News Details
Back

Truck rentals slide by 4-5% on trunk routes in November

Sanjay Jog/Mumbai 04 Dec 12 | 01:01 AM

The slowdown in the economy is reflected in truck rentals. In November, truck rentals on trunk routes dipped by 4-5 per cent after briefly peaking during the festival season in October.

According to the report by the Indian Foundation of Transport Research and Training, the October gains were short-lived. What stalled further fall in truckers’ revenues was the continuous support from wheat, rice export-related transportation and the sustained domestic transportation of cement, tiles, sanitary material, pharma, FMCG goods and increased arrival fresh fruits and vegetables.

Related Stories

    No Related Stories Found

The Foundation's senior fellow and coordinator S P Singh said that truck rentals started falling in the second half of November after a stable period during Diwali festival, thanks to increased cargo movement.

According to Singh, the small-scale manufacturing sector, a major contributor to cargo movement, is passing through tough times due to pile up of inventories.

“In a positive development, the truckers are putting on hold induction of new trucks and fleet expansion, despite heavy inducements coming from vehicle manufacturers. Therefore, indiscriminate fleet expansion by operators has come to a halt because truckers have fresh memories of 2008-09’s economic slowdown and the resultant crisis in the truck transport business," Singh noted.

He added that the truckers were able to pass on the increased cost of diesel price hike of Rs 5 per litre by way of 5-6 per cent jump in truck rentals in September.

However, the gains from further freight increase of 3-4 per cent in October did not help as rentals dropped by 4-5 per cent in the second half of November.

Singh has sought the government's intervention to increase expenditure on infrastructure sector and encourage consumer spending to infuse life in the economy and help the truck transport, which moves more than 80 per cent of the cargo in India.

Currently, he informed that there are over six million trucks and 250,000 transport firms in the country handling an annual freight volume of Rs 4,00,000 crore.

SPEED BREAKER
Full truck load (16.2 tonne gross vehicle weight) rental
(Rs per round trip)
Trunk Route 

Round Trip
from Delhi*

  Rental Movement ( per round trip)

Rentalas on
2nd  Nov. 2012
Rental  as on
1st Dec 2012
with Decrease(%)
Monthly Rental
Avg  for April’10
-March'11
Monthly Rental
Average for April’11
-March'12
Mumbai 56,500 54,300 (-4%) 51,158 56,598 (10.6%)
Nagpur 53,700 51,000  (-5%) 49,058 54806 (11.7%)
Kolkata 58,000 55,700 (-4%) 50,359 57,809 (14.8%)
Guwahati 1,01,000 96,000  (-5%) 90,541

1,02,154 (12.8%)

Hyderabad 77,300 74,200 (- 4%) 66,975 76,625 (14.4%)
Chennai 87,000 83,500 (-4%) 79,858 89,242 (11.7%)
Bangalore 86,200 82,800 (-4%) 77,950 87,417 (12.1%)
Ranchi 57,200 54,400  (-5%) 49,933 56,308 (12.8%)
Raipur 53,600 51,500   (-4%) 48,759 54,392 (11.6%)
Kandla 43,000 41,300 (-4%) 35,400 41,867 (18.3%)
Bilaspur 53,500 51,400 (-4%) 47,433 54,017 (13.9%)
*9 tonne payload                                  Source : Indian Foundation of Transport Research & Training

Sensex

Company Price Gain (%)
Hero Motocorp2,906.052.33
Sun Pharma.Inds.810.002.23
Larsen & Toubro1,553.202.14
St Bk of India2,615.952.10
Hindalco Inds.163.902.09

Poll

With upbeat economic data will the Nifty top 8,500 in September?


Online Portfolio

You can create Online Portfolio here using the below button.