Festive season sparks increase Truck freight rates on major routes

Manufacturers are ramping up supplies in anticipation of higher demand for the upcoming festive season,leading to a notable rise in the movement of goods from manufacturing facilities to commercial hubs.On the Delhi-Kolkata-Delhi round trip, truck rental for an 18-tonne payload truck increased by 1.4 percent, rising to ₹147,000 on July 24, 2024, from ₹145,000 on June 24, 2024. The Mumbai-Chennai-Mumbai route recorded a 2.1 percent increase to ₹148,000 from ₹145,000, while the Bengaluru-Mumbai-Bengaluru trip saw a 1.7 percent rise to ₹122,000 from ₹120,000, according to data from the Shriram Mobility Bulletin.

The Kolkata-Guwahati-Kolkata route saw a 3.9 percent increase in truck rentals. However, routes such as Delhi-Mumbai-Delhi, Delhi-Bengaluru-Delhi, and Bengaluru-Kolkata-Bengaluru reported marginal declines.

With the kharif harvest approaching and reservoirs filled due to good monsoon rains, rural activity is expected to gain momentum in the coming months. Manufacturers are also increasing supplies to commercial hubs in anticipation of higher festive demand across various product categories. “We are witnessing a positive shift in sentiment,” said Y S Chakravarti, MD and CEO of Shriram Finance Ltd.

Two-wheeler sales, crucial for rural transportation, are projected to perform well. Sales during the D2D (Dussera to Dhanteras) period may reach 5.4 to 5.5 million units, up from nearly 4.5 million last year, Chakravarti noted.

Used commercial vehicles (UCVs) showed robust year-over-year growth across all weight categories, with prices for 2 to 3.5-tonne 4-wheeler UCVs increasing by up to 47 percent, followed by a 36 percent growth in the 1.5 to 2-tonne category.

While petrol consumption remained unchanged in July, diesel consumption dropped by 10 percent compared with June 2024 levels. Similarly, intra-State and inter-State E-Way Bill generation, the number of suppliers, and E-Way Bill value all decreased on a month-over-month basis in June 2024. FASTag toll collections also remained flat compared with June 2024.