Instead of a 3-4% rise in truck rentals warranted by the recent hike in diesel prices, hiring charges for trucks have suddenly soared, adding to inflation. The unwarranted rise has been tracked by a leading transport research firm, which is also substantiated by data from the ministry of road transport and highways.
Rentals for standard 9-tonne trucks rose almost 12-13% immediately after the diesel price hike.
A Delhi-Kandla-Delhi trip priced at Rs 46,600 before the price revision jumped almost Rs 5,000, before cooling to Rs 2,300?a 7% rise against a 3% rise in costs. According to a road transport ministry estimate, heavy goods vehicles consume about 6 km per litre on highways and 4 km in cities. Truck rentals impact retail prices of fruits and vegetables, as almost 80% of these commodities is transported by trucks.
The estimate by the Indian Foundation of Transport Research and Training (IFTRT), a Delhi-based transport tracking organisation shows that it is the truckers? unions who have jacked up rentals after the fuel price hike.
It adds that many retail booking agents or retail goods transport firms ?have advised them (the owners) to inject a steep increase of 8%-10% retail freight hike.?
?The goods booking agents/ retail transport firms are going to be the real beneficiaries of this hike as they have a direct interface with consignors and traders who normally provide cargo to these goods booking firms,? IFTRT said.
The foundation further stated that the biggest losers from this hike by booking agents and retail transport firms would be the small and medium enterprises who have very limited bargaining power on retail parcel booking freight charges with goods booking transport agencies.
The jack-up of prices by 10%-12% could not be sustained because of stiff resistance from consignors and big transport firms hiring trucks, along with increased availability of trucks.
Between November 2009 to April 2010, truck rentals across the country have moved up by 21%-23% due to strong demand, limited availability and large-scale diversion of trucks for transport ing wholesale products like grains and sugar.
?Riding on the quantum jump in cargo offerings and shortage of trucks in the last seven to eight months, truck rentals have been overpriced in comparison to the increase in input cost till May 2010,? the IFTRT said.