Truck rentals on key routes strengthened further in June, by 2-3%, with tractor trailer hire charges jumping a sharp 20%. In last six months, truck rentals have risen 12-14%, bringing relief for fleet operators battling muted manufacturing activity.
A monthly alert by the Indian Foundation of Transport Research & Training (IFTRT) on Tuesday said truck rentals firmed up during the month as cargo offerings from summer season fruit and vegetables (including onions) continued to be buoyant. In addition, demand for trucks in states seeing wheat procurement gave extra push to freight movement.
?Various contractual transport businesses in the infrastructure sector have hastened their transportation requirements at project sites, which require 35-49 tonne capacity trailers. In addition, the shrinking truck fleet on national permit routes helped improve truck rentals as well,? said SP Singh, convener, IFTRT.
According to IFTRT, truck rentals on routes such as Delhi-Bilaspur-Delhi went up by 3.2% while Delhi-Nagpur-Delhi, Delhi-Chennai-Delhi, Delhi-Bangalore-Delhi and a few others showed a 3% rise during the month.
The report cites wheat harvesting, a 15-20% jump in summer fruit and vegetable arrivals, a consequent rise in rural spending, increase in election expenditure and shrinking truck fleet on national permit routes as the reason for improvement in truck rentals. The report adds that dispatches of FMCG, consumer durables, general merchandise and housing construction material improved in tier-I and tier-II cities during the month.
Further, according to IFTRT, truckers are going in for fleet replacement after a major lull in the last eight quarters ? they are able to to take on more exposure from banks/NBFCs after having repaid their auto loans taken in 2010-11.