Cargo rates firm; growth in volume

Our Commodities Bureau in Mumbai

Freight rates for the nine-tonne payload from Mumbai to the rest of the country remained firm last week. A reasonably good growth in cargo volumes and a moderate vehicle availability made sure that freight cost remain upward.

Rates to the flood-hit Orissa and Assam seem to be going through the roof with rates jumping up yet again. In the north, Jammu and Kashmir is moving into up while the busy Mumbai-Delhi route saw further consolidation in rates. Neighbours Haryana and Punjab would soon feel the heat and rates may go up further, according to transporters. They have been citing the imposition of Rs 150 per tonne overload charges, levied by Punjab since last month as one of the reasons for the possible hike.

Last week, UP and Himachal Pradesh were commanding a premium on rates with the weather improving in the region. Bihar routes, which were down by Rs 500-1,500 last week, might stabilise due to renewed interest among industries in the region, say transporters.

Madhya Pradesh, as was seen last week, is quite firm compared with its early-July levels. Westerns routes too are firm. Select Maharashtra cities are quoting a premium, while Gujarat and Rajasthan remained firm.

Assam rates, which went down in the previous much to the chagrin of transporters, are back in habits. West Bengal rates stood firm while a vehicle shortage assured Orissa rates to be on the upside. Southern states are now stable and may firm up, according to a Mumbai-Kerala operator. Although he did not give any reasons for the appreciation, good growth in cargo volumes might be the plausible explanation. Major cities, Chennai and Bangalore are reasonably up.