Truck rentals drop by 5-7% in past fortnight as Covid lockdowns hit production

By: |
May 16, 2021 8:52 PM

The New Delhi-based think-tank further said that truck rentals could have fallen more had the arrival of summer fruits, vegetables, wheat and other crops in APMC mandis not gone up by 10-15 per cent.

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The slump in factory output due to lockdowns in states has resulted in decline in truck rentals on key trunk routes by 5-7 per cent in the past 15 days, according to the freight rate data released by Indian Foundation of Transport Research and Training (IFTRT).

The New Delhi-based think-tank further said that truck rentals could have fallen more had the arrival of summer fruits, vegetables, wheat and other crops in APMC mandis not gone up by 10-15 per cent.

The IFTRT said due to a steep drop in cargo offerings and lockdown of businesses, factories, particularly that of MSMEs in most of the states, the demand for new vehicles for replacement by fleet owners has virtually come to a stand still, leading to production stoppages by commercial vehicle (CV) makers.

It also said the road transport sector will have to remain prepared for prolonged rainy days beyond the monsoon season.

India has been reporting more than three lakh new COVID cases daily in recent weeks.

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