CHENNAI: Despite stagnant diesel prices and tyre rates, India’s road freight costs have been seeing a steady rise over the past four months.
Industry experts say that the rise in prices has been driven by a consistent across-the-spectrum recovery in economic activity over the period, with the first fortnight of September also witnessing the start of festive season demand.
A report for the September 1-15 period released by the Indian Foundation of Transport Research and Training (IFTRT) says, truck rental rates have risen by an average 2-2.8% driven by an “all-round uptick in economic activity and recoveries in segments such as export, construction, infrastructure, general merchenchise, FMCG and consumer durables, electronic items, steel, cement, feritlizers, and movement of fruits and vegetables”.
“Wholesalers are busy piling up inventory for the coming peak festival season with hopes that relaxed Covid-19 norms shall bring more consumers to markets in the next 3 months,” noted S P Singh, senior fellow, IFTRT.