Backed by the pre-Kharif activity logistics sector is showing signs of recovery. A mobility outlook by Shriram shows that farm-linked transportation is aiding in the recovery of truck rental rates and sales of automotive products such as tractors; however, the core mobility sector remains stagnant.
The report shows that the truck rental rates for the popular routes, such as Delhi-Mumbai, Delhi-Chennai and Mumbai-Chennai, are showing signs of recovery; however, other routes like Delhi-Kolkata and Delhi-Bengaluru are still lagging.
The round-trip rental rates, with an 18-tonne payload, for the Delhi-Mumbai route were Rs 160,000 in May, which increased to Rs 162,000, an increase of 1.3 percent in a month. On a year-on-year basis, the fares on the route increased by 5 percent. Similarly, rental rates on other routes increased from 0.4 percent to 1.9 percent in the month.
Tractors pulling vehicle sales
According to the Shriram Mobility Bulletin, the sales of goods carrier vehicles continued to decline in June. In May, a total of 59,376 good carriers were sold, while in June, the sales of the vehicles declined by 11 percent to 52,871 units.
On the other hand, during the same period, the sales of agricultural and commercial tractors grew by 3 percent and 5 percent, respectively. Sales of Agricultural tractors increased from 65,364 in May to 67,302 in June. Similarly, commercial tractor sales also grew by 252 units in the month.
Oil consumption and Fastag collection
As the overall enthusiasm in the logistics sector remains low, oil consumption and Fastag collection also registered a decrease. The diesel consumption decreased by 6 percent in the month, from 8.57 MT in May to 8.08 MT in June. Petrol consumption also declined by 7 percent in June.
Fastag collection in June declined by 4.1 percent by value. In May, the total Fastag collection in India was Rs 7087 crore, which decreased to Rs 6793 crore in June.