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अत्यधिक बारिश के कारण ट्रक के किराये गिर जाते हैं, जिससे ट्रांसपोर्टर्स ऋण पर चूक के करीब पहुंच सकते हैं – ईटी ऑटो ट्रांसपोर्टर्स ऋण पर चूक करने के बहुत करीब हैं। मुंबई: ट्रक का किराया एक रिपोर्ट में पाया गया कि अत्यधिक बारिश के कारण मांग में गिरावट के कारण जुलाई के उत्तरार्ध में 10-15% की गिरावट आई है, जिससे बाजार में आने वाली कृषि उपज पर प्रतिकूल असर पड़ा है।
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Transporters are on the verge of surrendering 50,000 vehicles to financiers, after being hit by sluggish economic activity, low freight availability, and end of the moratorium on August 31. This is based on the estimates of the Indian Foundation of Transport Research & Training (IFTRT), a New Delhi-based think-tank.
A sharp month-on-month drop of 10 per cent in freight rates for August has also added to woes. “The situation is very fragile,” said S P Singh, senior fellow at the IFTRT.
Consolidation has begun, due to which some are trying to trim the business and others seeking an exit, he said, adding that the situation would worsen after August 31. “We see 45,000-50,000 vehicles getting surrendered as transporters will not be able to meet payment obligations,” said Singh.
With no sight of recovery in loans already disbursed, getting credit for new vehicles is a major issue and loan rejection rates are very high, he added.
However, Umesh Revankar, MD and CEO, Shriram Transport Finance, has dismissed suggestions of any crisis. “I don’t see repossession or surrendering of vehicles happening. It’s just a hype. Financiers will allow customers to sort ot their problems and return,” he said.
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He pointed out that financiers including Shriram Transport have been providing working capital requirements. With the lockdown easing, things are improving month-on-month, he added.
Meanwhile, an end to the holiday from paying road tax on September 30, among others, is also bothering truck owners.
On June 9, the government extended the validity date of motor vehicle documents till September 30. Balmalkit Singh, former president of the Bombay Goods Transport Association, seconds IFTRT’s Singh.
chart“Demand is extremely sluggish. Only 40 per cent of the fleet is being utilised. Most transporters will not be able to meet their commitment, leading to a default. It’s going to be a huge crisis if the moratorium is not extended.”
Transporters have survived for so long because of the EMI holiday. High diesel prices and low freight have also weighed on the business, he added.
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5%-7% increase in cargo offerings from factory gates in the second half of January, the sales slump in the medium and heavy truck segment continues with fleet operators cautious about adding new capacity.
#Truck #MediumTruck #HeavyTruck #FleetOperator #NBFC #IFTRT #VECV #SalesSlump #IndianFoundationTransportResearchTraining #TruckMarketers
#vecv#Truck#Medium Truck#Heavy Truck#Fleet Operator#Industry#NBFC#IFTRT#Indian Foundation of Transport Research and Training#Truck Marketers#Sales Slump
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Road freight rates to cool off 10-12% following diesel price cut: IFTRT
Road freight rates to cool off 10-12% following diesel price cut: IFTRT
Freight rates on key trunk routes are expected to come down by 10-12 per cent over the next few days following the cut in the diesel prices, according to Indian Foundation of Transport Research and Training (IFTRT) The move will have a cascading impact on the prices of fruits, vegetables and other consumables, the prices of which are expected to come down, offering a relief from the persistent…
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Truck rentals see marginal increase: IFTRT report
Truck rentals see marginal increase: IFTRT report
Hinting at recovery in the transportation sector, truck rentals across the country registered a four to six per cent increase in July. A report by Indian Foundation of Transport Research and Training said the increase in rentals is on the support of 10 to 15 increase of factory output. It was possible even though the despatches in vegetables in regulated markets dropped by 10 per cent due to the…
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‘Truck rentals consolidate with ₹1/litre diesel price cut’
‘Truck rentals consolidate with ₹1/litre diesel price cut’
Truck rentals consolidated on trunk routes during last month of current fiscal (March) backed by a ₹1 a litre cumulative decline in diesel price during last seven-ten days, stated think tank Indian Foundation of Transport Research and Training (IFTRT).
Rentals on many trunk routes did not change, went up by three per cent on some routes and declined by 1.5 per cent on some routes during the…
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Hit hard by the virus and lack of demand, India's trucking industry now battles shortage of drivers
New Post has been published on https://apzweb.com/hit-hard-by-the-virus-and-lack-of-demand-indias-trucking-industry-now-battles-shortage-of-drivers/
Hit hard by the virus and lack of demand, India's trucking industry now battles shortage of drivers
As India went through its initial 21-day lockdown period, the entire transportation ecosystem, including road freight movement, came to a screeching halt – and among the worst hit were its fleet owners.
From April 20th, many of the curbs placed on movement of trucks will see some easing, but according to the Indian Foundation of Transport Research and Training (IFTRT), Indian trucking now battles shortage of drivers. Since more than 50% of the 50 lakh trucks are already off the road due to the unavailability of drivers.
The Indian trucking industry deploys more than 8 million drivers and 12 million helpers. As a baseline, 30 million people are directly employed by the trucking industry and more than 150 million people depend on it for their bread and butter, say industry estimates.
Undoubtedly, the large scale meltdown has led the sector to skid off its promising track, thereby pushing thousands of fleet owners to the brink. Experts caution that the real impact of the nationwide lockdown would be long-term.
Logistics platform WheelsEye analysed over 30,000 fleet owners and 3 lakh plus trucks in India, and found that these fleet owners have been hit the hardest. There is also a real chance that India might end up witnessing a massive NPA problem from the commercial automotive sector.
The findings by the tech based ecosystem, with a fleet of 4 lakh trucks reveal that on a scale of 1 to 5, 5 being the highest, Covid-19 has impacted the lives of the fleet owner to the extent of 4.115. The impact has been so severe that 62.50% of fleet owners preferred to stop all work for the safety of their drivers or due to less demand in the market, notes the platform’s survey.
“With the lockdown in effect and little certainty around the situation for the next three months, the future of more than 150 Million people is under dark clouds,” highlights Sonesh Jain, Founder Member, WheelsEye.
The platform further found out that the average KM Per Day for fleet owners had consistently fallen by more than 95%. From an average run of 140 KMs, they are now clocking less than 10KM/day. The data from about 30,000 fleet owners show that the majority of in transit trucks are stuck as it is wherever they were.
More than 50% of India’s (organised long haul) trucking fleet are now without drivers, experts fear even if the lockdown is lifted, the logistics sector may not see an immediate uptick since most drivers have gone back to their native places. Fear of the virus, no work and lack of sustenance in the cities and transportation hubs, have meant most drivers have gone back to where they belong
From bad to worse
According to Sachin Haritash, Founder, Mavyn Digital Trucking, not just anything near 50%, but organised long-haul vehicles are facing the absence of drivers to the tune of staggering 98%.
“With most drivers fleeing away to their native homes, we don’t see any immediate recovery,” he says. Concurring with Haritash’s view, Gazal Kalra, Co-Founder of trucking-logistics unicorn Rivigo, states that because of the lockdown, 70-80 % of truck drivers are not on the job now.
Many truck drivers were caught in logjams at city borders, unfortunately carrying non-essentials, which meant they could neither enter a city nor return to the warehouse. This was a dreadful situation for drivers.
ET Online
A border checkpoint between Delhi and Gurugram. (Pic: Pranbihanga Borpuzari)
“If it’s a matter of 2-3 days, drivers could have managed, but here we are talking about three weeks. With little money on them, and roadside food joints and dhabas closed — their only lifeline, why should drivers risk their lives being on the road,” wonders Kalra. The problems were compounded since there were no workers to load and unload goods. This meant even trucks carrying essential items were sometimes stuck because they could not load or /unload.
SFOs’ catch 22 moment
Rivigo’s Kalra highlights that in India, more than 90% of fleet owners belong to the Small Feet Owners (SFO) category where the owner-drivers, own up to 5 vehicles. Such players also don’t have the wherewithal to secure business demands on their own. These generally get their demand inputs through transport brokers, but with the whole transportation ecosystem at a standstill, there is no demand on offer for such players.
Logistics business has a minimal cushion and cannot sustain a long term loss of business, asserts Cogos’ Prasad Sreeram. “Few of the organised fleet owners are looking at utilising moratorium, but are not sure if the liabilities could be cleared if the recovery spreads to multiple quarters,” he adds.
Also, while big companies do possess the wherewithal to secure government letters showing proof of carrying essential goods, SMEs may not have the resources to obtain these documents in a short interval of time.
According to Cogos, the Achilles’ heel of the sector is that the earnings have dipped to zero for many, while fixed costs like EMI, rents have stayed. “The moratorium could give relief to a few organised players, not for all. The second worry is for the vehicles stuck, the costs of keeping the fleet (detention) and safety of the goods could be irrecoverable,” highlights Prasad Sreeram, Founder and CEO of the Bengaluru-based startup.
Further, living hand to mouth, SFOs on an average have not received any load in the past three weeks. This is adding to the irrecoverable losses already piling up for the segment. WheelsEye’s above quoted survey also found that among 200 fleet owners, 96% of them were anxious about missing out on the EMIs. Thus, experts believe the Government should be ready to expect the NPAs to rise further in coming times.
Talks of solutions
LetsTransport CEO and Co-Founder, Pushkar Singh looks at the situation differently. He believes the spread of Covid-19 and the subsequent lockdown can be treated as two separate events with different implications on the wider ecosystem.
Stressing that while it’s true that due to the fear of the virus, most drivers and migrant workers are afraid to continue working and have travelled back to their native places, he also finds fault in the heavy handed manner in which authorities enforced the lockdown in the first few days.
“These are the daily wage earners and are dependent on these businesses for their livelihood. If these problems are addressed, they would be more than willing to return to work,” he remarks.
Further, to mitigate the impact of the lockdown, Raj Saxena, Founder & CEO of logistics intelligence platform LogisticsNow, underlines that IT can be an enabler here. He suggests all logistics companies should be given electronic passes (transferable on a mobile phone) for their drivers to use and travel back/ report back to duty, go pick up loads/directly deploy where they are most needed (this can start now, each mobile electronic pass can be tagged to the Aadhar/driving license of the driver if possible. Such a move would also be the precursor to the National Registry of Truck Drivers, he opines.
Local Governments and large fleet owners should jointly plan travel return arrangements for key “driver clusters”- villages/districts which are home to several thousand drivers like Mewat in the north, Anantapur in the south etc, he further suggests.
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IFTRT Announcement
Motor TP & Health Insurance premium falling due for payment on or after 25th March and before 14th April can be paid on or before 21st April. It will be treated as continuous cover.- IFTRT UPDATE
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Coronavirus Outbreak: NHAI to resume toll collection on national highways from 20 April; transporters' body AIMTC opposes move
New Delhi: The National Highways Authority of India (NHAI) will resume toll collection on national highways from 20 April, as per a government communication, a move which is being opposed by the transport fraternity.
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The government had on 25 March announced temporarily suspending toll collection on national highways to ease emergency services in view of the coronavirus outbreak.
“In view of the relaxations provided by the Ministry of Home Affairs for the interstate and intrastate movement of all trucks and other goods/carrier vehicles ...NHAI should take actions necessary for compliance of the orders of Ministry of Home Affairs ... and tolling operations be resumed WEF 20 of April 2020,” the Ministry of Road Transport and Highways said in a letter to NHAI.
Replying to communication from NHAI, the ministry said the authority in letters dated 11 April and 14 April had highlighted reasons for resuming the collection of user fee on national highways, saying that the Ministry of Home Affairs has allowed a lot of activities with effect from 20 April, including commercial and private establishments and construction work.
“It has been further highlighted that user fee collection contributes to the government exchequer and also provides financial strength to NHAI in terms of budgetary support,” the letter mentioned.
However, transporters’ apex body All India Motor Transport Congress (AIMTC) has opposed the move.
“This is appallingly preposterous. On one hand, the government wants the continuity of essential supplies and which our fraternity is doing against all odds and at even loss, in service of the nation,” it said.
AIMTC represents about 95 lakh truckers and transport entities.
Its President Kultaran Singh Atwal said: “The entire transport fraternity is financially broke and does not have finance for operations and bringing back drivers either, which is another big challenge. Yet the government instead of extending this sector a helping hand by giving a bare minimum rescue package, submitted by AIMTC, it is burdening it with toll charges that account for 20 percent of the operating costs.”
Indian Foundation of Transport Research and Training (IFTRT) Coordinator SP Singh in the past 21 days the benefit of toll fee not being levied was hardly being passed on in form of any reduction in truck rentals across the country.
“In view of COVID-19, it has been ordered to temporarily suspend the collection of toll at all toll plazas across India,” Road Transport and Highways Minister Nitin Gadkari has announced on 25 March.
This will not only reduce inconvenience to emergency services but also save critical time, he has said.
The minister has said maintenance of roads and availability of emergency resources at toll plazas will continue as usual.
Earlier, the road transport and highways ministry had advised the NHAI to follow the home ministry’s guidelines about toll plaza operations following the lockdown.
The prevailing condition may be treated as “Force Majeure” of concession or contract agreement in terms of the finance ministry, it had said.
The NHAI had rolled out the electronic toll collection programme across India in December on its over 500 toll plazas while doubling toll charges from the vehicles entering FASTag lanes without the tag.
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Truckers’ strike enters third day, gets mix response
Truck operators’ nationwide indefinite strike called by their umbrella body AIMTC received a mixed response on the third day today.
All India Motor Transport Congress (AIMTC) started a nationwide indefinite strike on July 20, and their demands include a reduction in central and state taxes by getting diesel under the GST so that price of the deregulated commodity can be reduced.
According to reports, the strike was more effective in the financial capital Mumbai, while in other parts of the country, including Delhi, it showed partial response only.
“Today on the third day of Nationwide Chakkajam called by the Apex body AIMTC, the movement has intensified and going strong with more and more transport unions at local level joining the stir,” AIMTC Core Committee Chairman Bal Malkit Singh said.
He said the AIMTC has urged the government’s intervention for tangible resolution of the issues.
“On third day too there has been no reconciliatory talks or indication from the government to resolve the issues with immediate tangible results. The movement will get intensified in days to come,” Singh added.
Essential commodities have been kept out of the strike. AIMTC claims that about 93 lakh trucks are affiliated to the body.
The Indian Foundation of Transport Research and Training (IFTRT), however said the strike has a little impact so far in the country.
Apart from demanding reduction in diesel prices, truckers are also against the “flawed and non-transparent” toll collection system that favours road concessioners and alleged that the time and fuel loss goes up to Rs 1.5 trillion annually on account of it.
Truckers are also miffed at high insurance premia and want a reduction in third-party premium, exemption on third-party premia from GST.
Apart from this, they are also pressing for exemptions and abolition of indirect taxes, national permits for all buses and trucks and also doing away with the direct port delivery tendering system.
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Truckers' Apex body - AICOGOA- goes on nation wide indefinite strike/Chakka Jam from 18th June instant at time when more known Transporters/ Goods Transport Agents ( GTAs) /Common carriers national body on logger head with Truckers' body - [email protected] and truck rentals remain firm after having passed, by and large on Diesel price escalatetion & 3rd party motor insurance premium hike on the truck freight market in last 6-8 weeks , it is very preplexing situation as Centre and State Governments seems to be taking very casual view of this truckers' strike without realising the seriousness of the shaping critical situation on trucking and trade routes in several ,if not all, critical Manufacturing and general merchandise item distruption States.
2. The opposite side AIMTC, more influential in goverment quarters and patronised by a section of officiadom , having Transport Contractors and retail part load open market Transport Agents ( GTAs) in sizeable control of organisation and State level agents/ brokers and transport intermediaries , has given the call long after the diesel price, 3rd party motor insurance premium hike, inter-state E-WAYBILL system has been operational and thus appears to forced into competitive agition wef 20/7/2018 by declaring nationwide stopping of booking and delivery of goods by the name Chakka Jam. As matter of fact, since 2008, when combined nation wide Chakka Jam by Transporters and truckers invoked partial respose and started pittering out within few days of its bigining in July 2008 on their demands relating to truckers, which remained unfulfilled till date. It looks as if Transporters always had their hidden agenda with focus on issues like stalling Carriage by Road Act/rules implementation, Services tax evasion cases against their leading Constituants by using truckers' as " foot soldiers" .
3. However, in present case of AICOGOA strike call from 18 June instant , while the truckers' agitation has kept essential item like vegetables, fruits, milk etc out the preview of its embit .
4. The reports from IFTRT resource persons covering various trucking centres from Karnataka, Kerala, AP, Telegana, Tamil Nadu, West Bengal , , Bihar, South and central Maharashtra, many parts of Odisha, strong important clusters / pockets of truckers' hold in UP, Chattisgarh , Punjab several Truck Unions in, MP , Rajasthan, Uttrakhand , HP and Haryana and few spots in Delhi-NCR shall have impact of truck operators strike with its severness escalating 2 or 3 days it's agition having National level distruption because trucks shall be held up in war zones and return load and entry into strike affected areas in States would become extremely difficult impacting trade , Industry and Commerce .
5. Thus , one one hand leading sea ports may be adversely impacted by truckers' strike from 18 June instant ,on the other hand, Gradually link between and inter-transport depandance will also distrupt Rail freight forwarding services.
6. With IFTRT assessment , that even if this AICOGOA truck operators national strike call is partial ,but effective in the States mentioned above , its prolonging impact could be crippling day by day. It would be appropriate for PMO and Centre Government to have taken appropriate notice of the issues repersentative by AICOGOA rather than thriving on devision between Transporters and truckers bodies.
7. The IFTRT, as independent Transport Research organisation tracking Transport and Automotive Sector for over 2 decades, will in any case, keep close watch on and be monitoring with interest various developments and intra-road Transporters conflict and how Government handles the truckers' agition.
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Twenty eight-year-old Mohammad Javed, driver of a truck carrying LPG cylinders, has been stranded at the Hubli checkpost since Tuesday afternoon without food, water or any hope. The policemen posted at the border would not allow him to cross over as the COVID-19 lockdown is to be followed stringently.
Javed is among some 500,000 drivers and helpers left high and dry across the many state borders, estimates made by the Indian Foundation of Transport Research and Training (IFTRT) suggest. Trucks, even the ones carrying essential goods, are not being allowed to move following the government orders to seal the borders and check posts.
“I started from Mangalore at 4 am today and have been at the border check post of Hubli since 1 pm. The police officers stationed here are not allowing me to go ahead and they thrash me when I request them to let me go. They are not even willing to talk. I have been surviving only on water and even that is over,” he says, adding there are at least 25 to 30 trucks loaded with LPG cylinders which are marooned in that area.
ALSO READ: Coronavirus LIVE: 'With folded hands' PM announces 21-day India lockdown
Suresh Khosla, partner at Shri Anand Transport Agency, which employs Javed, says he’s in touch with the Federation of Bombay Motor Transport Operators for the release of the trucks on an urgent basis. His company is into transporting essential bulk commodities, but it’s a challenge to continue with the business as all entry points to Maharashtra have been shut due to coronavirus, Khosla points out.
trucks, road, transport, highways, accidents
“The biggest challenge we are facing is with all the dhabas and restaurants being shut, the drivers have no option but to starve. The loading location provides food but enroute no dhabas are open,” says a person associated with the business.
With all the ancillary automobile shops being shut, vehicle repair is not possible and one cannot get the vehicles back on the road. Not surprisingly, the family members of the drivers are concerned and want them home.
Balmalkit Singh, chairman of All Indian Motor Transport Congress (AIMTC), believes the movement of goods would be severely impacted.
Meanwhile, there’s been a ripple effect with the plight of the hapless drivers stuck at the borders reaching their co-workers. They are now refusing to report to work, says Singh. “With no food or requisite infrastructure in sight, they don’t want to leave home.” The delays are also because of the confusion regarding what is essential and what’s non-essential, he adds. “Everything has come to a standstill,” he added.
“There is a large exodus of drivers from the loading points. They are rushing home. Some 250,000 to 300,000 drivers have already left for their native places after handing over the keys to their owners,” says SP Singh, senior fellow at IFTRT. All these trucks are carrying high-value items and the drivers cannot afford to leave them unattended. “We have been asking the government for a bailout package. Owners are not able to help in anyway. They (drivers) are facing a lot of hardship. Most of them are not on the payrolls of the transporters and are on minimum wages,” Singh tells Business Standard.
Following a rapid rise in the coronavirus cases and the countrywide lockdown, demand for all staples and essentials has hit the supply chain snag and manufacturers of various goods are scrambling to keep pace.
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#truck unions#Goods Transport#Fuel Price#transportation#Delhi#Transporter#Diesel Price#Transport#IFTRT#Truck Rentals
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Getting a New Driving Licence Will Now Cost You More
Now, obtaining a driving licence or taking on a driving test will cost you a lot more. The road transport ministry has raised the charges for issuing a driving permit from Rs 40 to Rs 200 and adding one more course of a lorry to existing licence from Rs 200 to Rs 500 Apply Driving Licence Online.
The fees will certainly be greater if the driving licence is a smart card and where state governments have actually opted for automation as well as are using innovation to accomplish driving examination or exam of automobile fitness.
Online Enquiry Driving Licence an alert announcing the charge walk also discusses that those who cannot restore of their licence in time will certainly have to pay Rs 300 and extra charge of Rs 1,000 for the hold-up of every year.
The notification mentions that in case of the hold-up in the submission of NOC for adjustment of possession, vehicle proprietors have to pay Rs 300 and also Rs 500 monthly as the additional charge for electric motorcycles and various other vehicles respectively.
In order to make certain that automobile owners get the physical fitness certifications in time, Update Details Driving Licence now those cannot do so will certainly need to spend extra fee of Rs 50 for every day of delay besides the regular charge to carry out fitness examination.
While the fee revision has been done to rationalize the costs, the focus is also on bringing some uniformity in the charging framework throughout states as well as penalizing people that do not upgrade their change of address as well as possession.
"These are not uncommon boost. The expense of running facilities for executing examinations have actually gone up in all these years. There is a have to make these centers financially viable. Document Required for Driving Licence the stipulation of greater fees for those cannot update individual and also lorry details for enforcement companies is a favorable step given that in a lot of cases challans cannot be provided given that the car owner has actually changed. Failing to educate modification of ownership is a huge hazard," claimed S P Singh of IFTRT, a think tank on transport concerns.
Also, the costs for hypothecation has actually been enhanced significantly to Rs 1,500 for three-wheelers as well as autos. Driving Licence Fee for the medium as well as heavy lorries, the fee is now Rs 3,000. In case of hypothecation, the consumer vows a property as security for a loan, while retaining ownership of the properties and also enjoying the benefits.
According to the new fee framework, while hands-on physical fitness examination of heavy cars will certainly cost Rs 600, the cost of the automated test will be and Rs 1,000. For cars and trucks, the hand-operated cost is Rs 400 and also in case of computerized examination, it is Rs 600.
#Driving Licence Fee#Document Required for Driving Licence#Update Details Driving Licence#Online Enquiry Driving Licence#Apply Driving Licence Online
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MSMEs: Truck rentals drop by 5-7% in past fortnight as lockdowns hit production
MSMEs: Truck rentals drop by 5-7% in past fortnight as lockdowns hit production
NEW DELHI: The slump in factory output due to lockdowns in states has resulted in decline in truck rentals on key trunk routes by 5-7 per cent in the past 15 days, according to the freight rate data released by Indian Foundation of Transport Research and Training (IFTRT).
The New Delhi-based think-tank further said that truck rentals could have fallen more had the arrival of summer fruits,…
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10% of drivers, helpers of commercial vehicles have left for their native places: IFTRT survey
10% of drivers, helpers of commercial vehicles have left for their native places: IFTRT survey
Almost 2-2.5 lakh drivers have Covid-like symptoms and viral infections, said the Indian Foundation of Transport Research and Training (IFTRT), based on a survey conducted on a sample size of 85,000 drivers and helpers conducted in the last one week using 50 resource persons.
If helpers were to be counted, 3.5 lakh drivers and helpers – that account for about 10 per cent of the total lot of…
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