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Truck Rentals shoot up by 11 to 12 per cent in September

Truck rentals on trunk routes, on the back of sharply rising diesel price, peak festival season inventory built up and rush to beat the deadline, e-waybill transit pass system introduction from October 2017 with 50 per cent jump in dispatches of 18%/28% GST avoiding products / items across the country on Intra-State and Inter-State routes, while BS-4 truck sales shoot up due to high discounts ranging 12 to-20 per cent and low EMIs - according to the study made by the Indian foundation of Transport Research and Training

 Truck rental trend: The month of September witnessed a single largest monthly 11 to 12 percent truck rental jump, a trend seen after almost 60 months.

 There has been a massive 50 per cent rise in cargo dispatches on trunk routes to beat the deadlinee-waybill transit pass system introduction from this month. The businesses were piling up large inventories by avoiding / evading 18 per cent - 28 per cent GST on different products / items to meet the peak festival season demand.

 Consequently retail parcel freight charges are prevailing at premium rates with unscrupulous traders trying to make hay when sun is shining. Coupled with this unprecedented demand in truck fleet, the steep rise in diesel price added to the reason for increase in truck rentals on trunk routes during September 2017.

 Put together the truck rentals during last 8 weeks had gone up by 13.5 to 15 per cent. With the tapering of monsoon across the country, the arrival of fruit and vegetable items into Agricultural Price Marketing Committees too has gone up by 10 to-15 per cent. This has further helped the improvement in fleet utilization on trunk routes.

 

2.     The following is the truck rental table for the period of 2nd Aug'17 to 1st Sept'17  and further to 1st Oct'17 period (i.e. August and September months 2017):

 

FULL TRUCK LOAD (25.2 TON G.V.W.) rental (Rs per round trip)

  Trunk Route

Rental Movement

( per Round Trip)

(for 15 ton PAY LOAD)

 

Round Trip/ 

15 ton pay load

1

Rental as on          

2nd Aug'17

2

Rental as on          

1st Sep'17

3

Rental as on          

1st Oct'17

4

Average Monthly truck rentals during Jan-Dec 2015 

5

Average Monthly truck rentals  during Jan-December 2016

6

 Delhi - Mumbai-Delhi

75500

77800(+3%)

87100(+12%)

76967

84921(+10%)

Delhi - Nagpur-Delhi

73200

75400(+3%)

84500(+12%)

76767

84563(+10%)

Delhi - Kolkata-Delhi

73200

75400(+3%)

84500(+12%)

78400

86275(+10%)

Delhi - Guwahati-Delhi

129500

133400(+3%)

145500(+11%)

131950

140763(+7%)

Delhi - Hyderabad-Delhi

103000

106100(+3%)

118800(+12%)

109317

119400(+9%)

Delhi - Chennai-Delhi

108500

111800(+3%)

125200(+12%)

122308

131925(+8%)

Delhi - Bangalore-Delhi

115000

118500(+3%)

132700(+12%)

121792

131708(+8%)

Delhi - Ranchi-Delhi

75200

77500(+3%)

86800(+12%)

79600

87350(+10%)

Delhi Raipur-Delhi

70300

72100(+2.5%)

80800(+12%)

76208

82763(+9%)

Delhi - Kandla-Delhi

74300

76500(+3%)

85700(+12%)

61358

72517(+19%)

Delhi - Bilaspur-Delhi

73700

75600(+2.5%)

84700(+12%)

75950

83467(+10%)

 

3.      Scenario: While, the Brent crude oil price is prevailing over 58 US Dollars per barrel and diesel price may remain firm during coming months with winter setting in US and Europe, the truckers would like to pass on any further increase in diesel price in coming weeks provided, the cargo offerings maintain the present momentum during October month as well.

 

The surplus cash with transporters due to abnormal increase in freight charges, easy funding of trucks by NBFCs / Banks and low EMIs coupled with substantially high discounts ranging 12 to-20 per cent  on purchase of BS-4 trucks of different variants / weight limit, has benefitted the vehicle manufacturers to push up truck sales in the country.

However, the introduction of e-waybill digital transit pass system in coming days or weeks as notified by the government to plug tax evasion post GST roll out may stifle the cargo movement and early tapering of festival season sales and spending may also curtail fleet utilisation and could have adverse impact on truck rentals during late October and November 2017 unless, manufacturing and infrastructure demand perks up due to Government Sops.

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