Freight rates rise as movement from Mumbai improves

Our Commodities Bureau in Mumbai

Cargo movement continued to improve from Mumbai to various parts of the country leading to a much steadier rise in freight rates for the nine-tonne payload. As was seen in the previous week, Mumbai to rest of Maharashtra routes remained buoyant while most of the northern states are gaining in around Rs 300-500 range.

The biggest gainer for transporters was Uttar Pradesh, which spurted by as much as Rs 1,500-2000 on high vehicle requirements. “Within UP, the industrial belts close to Delhi and places like Kanpur, Allahabad, Gorakhpur and Ghaziabad were generating good demand.

However, the current drivers include large quantities of agriculture produce moving from Nashik to parts of the UP, “ said a transporter, while explaining the momentum.

UP had seen a placid period since monsoon. The industrial regions did not create much demand for transporters to divert vehicles here since the impact of the economic slowdown was visible. “The cargo movement is substantial,” says a Ghaziabad-based transporter, hinting at the large quantity of kacchha maal (raw material) moving to the state.

“It will take a few weeks to get the rates to a reasonable levels since we have to divert more vehicles from other buoyant northern routes,” he added. In fact, further north, Jammu and Kashmir was up
Rs 500 while Himachal Pradesh, and Delhi were up by 300, the ascending for the fourth week in a row. Haryana and Punjab remained stable. Overall, the buoyancy was seen across regions. Assam in the east gained further while Gujarat in the west followed Maharashtra closely.

Many cities here were quoting higher rates by around Rs 500 or more. South perhaps has a different story to tell.

Except Tamil Nadu, most of the states were showing lower rates. Bangalore was down by Rs 500 and so were Hyderabad and Cochin, the leading industrial cities in respective states in the region.