Truck fleet demand, utility down: Think tank report
Equipment

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

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

Next Story
Resources

Skyview by Empyrean is Making Benchmarks in the Indian Ropeway Industry

FIL Industries Private Limited, the parent company of Empyrean Skyview Projects that pioneered ropeway mobility solutions in India with Jammu’s Skyview Gondola, is currently developing the Dehradun-Mussoorie ropeway and is on track to complete Phase I by September 2026. The ropeway is set to be India’s longest passenger aerial monocable covering 5.8 km between the foothills of Dehradun in Purkulgam and MDDA taxi stand in the hills of Mussoorie in just under 20 minutes. The firm pioneered green mobility solutions in India with the development of the flagship Skyview Gondola in Jam..

Next Story
Technology

Creativity is for Humans, Productivity is for Robots!

On most construction sites, the rhythm of progress is measured by the clang of steel, the hum of machinery and the sweat of thousands. But increasingly, new sounds are entering the mix: the quiet efficiency of algorithms, the hum of drones overhead, and the precision of robotic arms at work. Behind the concrete and cables, an invisible force is taking hold: data. It is turning blueprints into living simulations, managing fleets of machines, and helping engineers make decisions before a single brick is laid. This is not the construction of tomorrow; it is the architecture of today – built on ..

Next Story
Infrastructure Urban

Bhartiya Urban Unveils ‘Bhartiya Converge’ GCC Enablement Platform

Bhartiya Urban has launched Bhartiya Converge, its latest business venture designed to become India’s premier platform for enabling Global Capability Centres (GCCs). The initiative offers an integrated ecosystem aimed at helping global clients gain a competitive edge in today’s rapidly evolving business environment. Focused on enhancing turnaround time and operational efficiencies, the company seeks to deliver better business outcomes powered by top-tier talent. Bhartiya Converge presents a customised and integrated suite of microservices that addresses the nuanced and evolving operational..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?