Sunday, January 7, 2001
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Cargo shortage forces freight rates to plunge 

Our Bureau  
Mumbai : Truck freight rates from Mumbai to most major cities in India saw dramatic collapse last week, due to shortage of cargo and high vehicle availability. Athough many sectors maintained demand for vehicles, transporters say that the rates might even go down further in the coming couple of weeks.

Sustaining large fleet has become an issue. We are in for a further 20-30 per cent drop in freight charges, said one transporter. The steep fall in cargo movement began in the middle of November and continues. Select northern routes including UP and Bihar and surrounding regions and Tamil Nadu in south have seen a major drop in prices. To some routes in east, the rates have gone down by as much as Rs 2,000. Cargo shortage is acute, informs one transporter.

Last weeks snowfall in north has only multiplied truckers problems. Delhi registered a drop in prices by around Rs 750, while Punjab and Haryana did not see any major change in costs.

Holding the fort firm were Himachal Pradesh in north, Andhra and Karnataka in south and Orissa in the eastern direction. However, transporters had anticipated all these.

Gujarat and Rajasthan did brisk business and Maharashtra had one of the stable weeks this time. Orange exporting Nagpur and industrialised outskirts of Thane and Ratnagiri districts had put up reasonable demands.Transporters hope that that the postponement of cargo booking to January and early February by the bulk users mainly industries would end in another month or so and revive the rates.

Kerala, down south, however resisted much change to stay firm at the December levels.

Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.

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