Freight rates for all commodities rose in April as transporters adjusted higher diesel prices by raising freight rates on several routes, Crisil Research said in a report on Monday.
However, fleet utilisation was flat on-month in April. Flat utilisation levels, uptick in freight rates, and increase in diesel prices resulted in the industry’s free cash flow falling to about 19% in April from 21% in March. “However, given the geopolitical developments, it is imperative to continue to track diesel prices as market dynamics could change rapidly,” the report noted.
Freight rates for consumer essentials such as FMCG/FMCD, loose goods, and mining applications rose sharply, with rates for discretionary goods such as automobiles and textiles also improving on-month.
This translated into the CRISFrex Index rising on-month to 129 in April 2022 from 121 in March 2022.
Crisil incorporates views of 100-150 transporters to understand freight dynamics and operational aspects, such as the number of trips undertaken and key cost heads (fuel, driver, toll, tyre, and maintenance).