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Iran War, Weak Manufacturing Hit India Freight
30 Apr
Summary
- Truck rentals decreased by 4-5% in April due to global conflicts.
- Manufacturing dispatches fell 15-20%, impacting SME cargo.
- Agri-logistics demand rose 20-25% amid rising tyre costs.
Truck rentals across India experienced a significant downturn in April, dropping by 4% to 5%. This follows a sharper decline of 9% to 10% observed in March on major routes. The current slump is largely influenced by the ongoing geopolitical situation, particularly the Iran war, and a general weakness in the manufacturing sector impacting freight volumes.
Dispatches from key manufacturing centers, especially from small and medium enterprises which handle a substantial portion of cargo, have seen a notable decrease of 15% to 20%. This reduction in industrial freight has shifted capacity towards other sectors.
In contrast, the agricultural logistics sector has witnessed robust growth, with demand increasing by 20% to 25%. This surge is driven by higher arrivals of essential produce like wheat, pulses, and seasonal fruits and vegetables. Despite stable local diesel prices, fleet owners are grappling with increased operational costs due to a 4% to 5% rise in truck tyre prices over the past four to six weeks.
