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Truck freight rates on major routes continued their upward climb in August 2024, marking the second consecutive month of increases, according to a Shriram Mobility Bulletin.
The approach of the festive season, along with heightened post-election activities, has significantly boosted demand across various transportation routes, driving up rates.
On the Kolkata-Guwahati-Kolkata round trip, truck rental for an 18-tonne payload truck rose 3 per cent to ₹1,36,000 as of August 24, 2024, up from ₹1,32,000 on July 24, 2024. Similarly, the Delhi-Kolkata-Delhi trip saw a 2.7 per cent increase to ₹1,50,000, while the Mumbai-Chennai-Mumbai route recorded a 2 per cent rise to ₹1,50,000. The Bengaluru-Mumbai-Bengaluru route saw a more modest increase of 1.6%, bringing rates to ₹125,000.
A notable increase in truck rentals on the Kolkata-Guwahati-Kolkata route can be attributed to the resumption of trade activities between India and Bangladesh. Fleet utilisation in the India-Bangladesh border region improved significantly, rising to nearly 60 per cent from the previous 40 per cent.
In the Srinagar region, freight rates surged by nearly 10 per cent, driven by the apple harvest and election-related activity. Similarly, freight rates in Kerala’s Wayanad region increased due to a shortage of trucks, many of which were deployed for rehabilitation work.
“With the festive season approaching, companies across India are ramping up production and supply efforts, leading to higher truck rentals on key routes. Apple picking season and pre-election activities in Srinagar pushed up rates, while the reopening of trade at the India-Bangladesh border increased fleet usage. However, recent floods in Gujarat have posed logistical challenges, and there is cautious anticipation regarding how quickly Andhra Pradesh and Telangana will recover from the devastating floods,” said YS Chakravarti, MD & CEO of Shriram Finance Ltd.
Mixed bag
The used commercial vehicle (UCV) market showed strong year-on-year growth across all weight categories. Prices for 31 to 36-tonne 4-wheeler UCVs rose by up to 12 per cent, while the 3.5 to 7.5-tonne category saw an 11 per cebt price increase.
Car sales, however, saw a 6 per cent decline in August 2024, with 2,80,151 units sold, down from 2,97,623 units in July. The drop was attributed to excessive rainfall, particularly in Gujarat, Andhra Pradesh and Tripura, which impacted showroom visits. Meanwhile, Goa, Kerala and Haryana reported growth in vehicle sales.
In the two-wheeler segment, sales contracted by 8 per cent month-on-month in August, although year-on-year sales grew by 6 per cent, driven by anticipation of the festive season.
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