Truck rentals fall

Commercial Vehicle - - NEWS -

The In­dian Foun­da­tion of Trans­port Re­search and Train­ing (IFTRT) has an­nounced a sharp fall in truck rentals on 75 trunk routes. Ac­cord­ing to IFTRT sources, veg­eta­bles and fruits contributed to the re­duc­tion in truck rentals apart from the fall in diesel price by Rs. 3.46 per litre in mid-June 2017. A sharp drop in dis­patches from fac­to­ries ahead of GST launch re­sulted in a sev­ento-nine per cent fall in truck rentals on ma­jor routes too. IFTRT sources ex­pect the trend to con­tinue un­til Au­gust, mainly be­cause of the heavy in­ven­to­ries of un­ac­counted goods and prod­ucts that have piled up in the whole­sale mar­kets, and with the re­tail­ers. The fall in despatch from fac­to­ries is es­ti­mated to be 20 per cent. With or­gan­ised man­u­fac­tur­ers and tax com­pli­ant busi­nesses tran­si­tion­ing to GST com­pli­ant pro­cesses, dis­patch ac­tiv­ity is ex­pected to be low for the next two months at least. Ad­versely im­pact­ing cargo of­fer­ings and truck fleet util­i­sa­tion, the dis­patches slowed down dur­ing the sec­ond half of June as deal­ers and re­tail­ers liq­ui­dated stocks fear­ing a higher tax bur­den on un­sold in­ven­tory af­ter the GST roll-out.

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