Truck rentals have gone up by 3-3.5 per cent in mid-October following the increase in diesel and petrol prices on October 15. This comes in the backdrop of higher demand in the festival season, kharif harvest, buoyant consumer spending and low inflation for food items, stated IFTRT, a transport research body.
Last month also truck rentals had gone up by 4 per cent due to an increase in diesel prices and the onset of the festive season.
The despatches post-monsoon on truck routes and booking and delivery of retail loads, which are usually part-truck loadings, are up 30-35 per cent in the current month. This led to further improvement in fleet utilisation of 20-25 per cent.
The maximum demand of freight movement is from small and medium enterprises, cars, two-wheeler transportation, consumer durables, general merchandise, cement, timber, various high-value marble and tiles, among others.
Despite mop-up of black money by ₹70,000 crore, more than half of the consumer spending in the festival season comes unabatedly from unaccounted for money, feels IFTRT. The 10-15 per cent increase in salary due to the Seventh Pay Commission is a small port of consumer spendings, it added.
The rentals for long-haul round trips such as Delhi-Mumbai-Delhi, Delhi-Kolkata-Delhi, Delhi-Raipur-Delhi and Delhi-Bengaluru-Delhi has gone up by 3-3.5 per cent.
Meanwhile, retail part-load logistics, charged by transport firms, logistics firms, booking and delivery agencies went up by 10-12 per cent in August-September and October. IFTRT attributes this to the fact that goods booking of under-reported consignments from SME manufactures and traders, which escape Central and state taxes, including service tax, has peaked.
The flexibility provided by transporters and consignors to avoid taxes help transport intermediaries to jack up taxes.
This may be the last festive season before goods and services tax (GST) is introduced on April 1, a move which will minimise tax avoidance, it added.