Improved availability of cargo from the agricultural sector, sustained improvement in the infrastructure and manufacturing sectors and two consecutive diesel price hike — R2.37/litre on May 1 and R2.71/litre on May 15 — have led to the increase in truck rentals by 5-6% in May, data from Indian Foundation for Transport Research and Training (IFTRT) showed.
Enhanced cargo from agriculture sector as a result of healthy mango crop and other seasonal fruits compensated for the loss the fleet operators made in the last two months due to damage of ready to harvest crops as result of unseasonal rainfall.
Cargo from manufacturing and infrastructure sectors did not decline for the past few months which are an indication of increased activity in the two sectors.
It is first time since January 2015 that truck fleet operators got spontaneous availability of full round trip cargo because of all round cargo offerings on 90% of trunk routes.
Sanjay Singh, senior research fellow of IFTRT said that procurement of fruits and vegetables were at its peak in May and the support from the manufacturing sector was also good.
“Such big diesel price hike in a single month got reflected by way of 5-6% freight increase because the truckers got cargo offerings from fruits and vegetables led by huge arrivals of mango fruit crop, over 95 million tonne wheat procurement, solid availability of cargo offerings of factory output across the board for return loads,” added Singh.