Truck fleet demand, utility down: Think tank report

As the second wave of Covid-19 makes its way into the country, affecting various industrial sectors severely, truck rentals have now plunged beyond expectation. According to a report by the transport sector think tank Indian Foundation of Transport Research and Training (IFTRT), fleet utilisation is down to 60%. Given the emerging trend of truck drivers preparing to return to their hometowns or villages to escape the new wave of coronavirus, the situation for trade, commerce and industry are grim, leading to panic in the transport business. Ashok Leyland, Eicher, and M&M are down 2-4%. The IFTRT report states that the new wave of Covid has led to a decline in the arrival of food and vegetable items at the mandis (Agriculture Produce Market Committees or APMC). APMCs were set up by the state governments to ensure good price discovery for farmers and to prevent retailers from having an undue bargaining advantage. The new wave has led to a 10-15% drop in demand from restaurants and hotels. Dispatches from factory gates also dropped lower by a similar 10-15%. The worst hit was production in Micro Small and Medium Enterprises (MSME), although diesel and tyre prices have remained unchanged from March 2021. If the situation remains dull, it will affect the payment of EMI on truck purchase loans. Truck rentals might see unions demand yet another moratorium. Round trip rentals for 18-20 tonne payload trucks: Delhi-Mumbai-Delhi: down 16% Delhi–Nagpur–Delhi: down 10% Delhi-Ranchi-Delhi: down 15% Delhi-Chennai-Delhi: down 13% Delhi-Kandla-Delhi: down 15% Image Source Also read: Container prices in India and China surge: Container xChange report