Cargo rates fluctuate; Overload penalty likely to push up rates

Our Commodities Bureau in Mumbai

Freight rates for the nine-tonne payload from Mumbai to rest of the country fluctuated wildly last week. Northern routes varied largely while east and south generally remained depressed. In the west, except Rajasthan, other states saw a downward revision in freight cost.

While Orissa suffered from very low cargo volume, Punjab rates went up following the imposition of Rs 150 per tonne overload charges from July 26 onwards. Transporters say that most of the states plan to impose similar penalties, which might result in a freight cost hike. “The concerned officials, be it the road transport department or police, corner a significant sum as bribes from transporters. Over and above this, this sort of charges will affect business, hence we will pass onto the customers,” explained a Mumbai-Delhi operator.

Delhi rates were marginally up and so were Haryana, Punjab’s neighbour. Although there is an improvement in weather in these parts, rates are reflective of this, partially due to low cargo movement. Himachal Pradesh continued to go down while UP showed a highly mixed trend.

Major cities were up while distant ones from Mumbai were marginally down. Bihar routes were down by Rs 500-1,500 while Madhya Pradesh did not disappoint transporters. Most of the routes have been going up since last week.

Surprisingly, when Assam rates are down this week, the Bengal rates stood firm. Orissa, in the same region, had not been receiving enough cargo due to floods for some time now.

South did not have much of a different story to tell. Most of the states are quoting low by around Rs 300-500. Chennai is holding firm while Bangalore is marginally down.