Truck rentals fall
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.