Mumbai: Truckers and transporters are increasing prices by as much as 80% and freighter operators are adding surcharges for transportation of goods as they grapple with regulatory challenges, shortage of manpower and a huge slump in supply.
This will increase logistics costs for companies and likely in products as well, industry executives said.
Truckers have increased tariffs by up to 80%, said people aware of the matter. Blue Dart has implemented a 25% emergency situation surcharge (ESS). Air India said it will increase freight charges by 90% per kilo if it doesn’t have sufficient cargo to ferry.
“Truck rentals have shot up for essential items such as fruits and vegetables despite a waiver of toll fee, motor vehicle taxes and some other incentives such as deferment of EMIs on truck loans,” said SP Singh, a senior fellow at the Indian Foundation of Transport Research and Training.
Ashok Walunj, a director at the Agriculture Produce Market Committee in Maharashtra, said most truckers get to ferry cargo only one way and return with empty trucks. He said the increase in Maharashtra is only 20%.
Manpower shortage is another reason. Up to 1.5 million of 5 million truck drivers in India are not coming to work.
14/04/20 Anirban Chowdhury/Economic Times
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This will increase logistics costs for companies and likely in products as well, industry executives said.
Truckers have increased tariffs by up to 80%, said people aware of the matter. Blue Dart has implemented a 25% emergency situation surcharge (ESS). Air India said it will increase freight charges by 90% per kilo if it doesn’t have sufficient cargo to ferry.
“Truck rentals have shot up for essential items such as fruits and vegetables despite a waiver of toll fee, motor vehicle taxes and some other incentives such as deferment of EMIs on truck loans,” said SP Singh, a senior fellow at the Indian Foundation of Transport Research and Training.
Ashok Walunj, a director at the Agriculture Produce Market Committee in Maharashtra, said most truckers get to ferry cargo only one way and return with empty trucks. He said the increase in Maharashtra is only 20%.
Manpower shortage is another reason. Up to 1.5 million of 5 million truck drivers in India are not coming to work.
14/04/20 Anirban Chowdhury/Economic Times
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