Freight Rates Expected To Strengthen For Southern Destinations

Mumbai, July 25 | Updated: Jul 26 2004, 05:52am hrs
Freight charges for the nine metric tonne payload section for Southern region went up on the local truck transport market last week on increased enquiries.

Transporters say freight rates are likely to go up further from the current level for southern destinations due to the Banana season that has started. Freight rates for southern region has increased in a range of Rs 500-1,000 on higher demand. Other destinations freight rates remained stable in scattered deals.

Local truck operators said, In the market, there is still confusion over the 10 per cent service tax, who will charge to whom. Further, there is panic among transpoters over nationwide stopage of work from August 21, 2004 called by the transport congress.

Sources further said, there is some panic over booking for early despatch of perishable commodities. Accordingly, there will be higher demand from the southern and western zones from fruits and vegetables segments.

Local cargo demand from cities like Chennai and other places are increasing and accordingly transporters are expecting higher bookings from local southern market to other cities, truck operators said.

In the coming week, transporters feel the truck rates for most of the East, West and North destinations are likely to remain stable or marginally rise due to average booking on the last few days.