Truck rental activity on key transport routes experienced a significant uptick in January 2025, attributed to an increase in available cargo. This rise was primarily driven by the seasonal surge in winter fruits and vegetables, which greatly enhanced the demand for freight movement and transportation services.
As reported by the Shriram Mobility Bulletin, truck rental rates showed a healthy recovery in January, influenced by the arrival of more agricultural products.
For instance, truck rental prices for 18-tonne payload vehicles for a round trip from Delhi to Mumbai increased by 4%, while the Mumbai to Kolkata route saw a rise of 3.7%. Furthermore, the Delhi to Hyderabad and Kolkata to Guwahati routes also experienced a 3.3% increase in rental rates month-on-month (m-o-m). The Delhi to Chennai round trip recorded a more modest increase of 2.4% in truck rental rates.
Y. S. Chakravarti, Managing Director and CEO of Shriram Finance Ltd., noted, “The rise in truck rental prices is a encouraging signal for the logistics industry, indicating a surge in transportation demand. The influx of winter fruits and vegetables has significantly contributed to this growth, generating greater need for logistics and storage. However, the ongoing cold wave impacting various regions has hindered vehicle movements, leading to some supply chain challenges.”
The influence of the cold wave is evident in the 4% m-o-m drop in diesel consumption. Additionally, there was a slight decline of 0.4% in both the transaction volume and value of FASTag, suggesting fewer commercial vehicles were operating on the roads.
The March quarter, traditionally a high activity period, is anticipated to further energize the logistics sector. Recent initiatives outlined in the latest Union Budget are expected to enhance growth in transportation and logistics. Despite the current disruptions caused by the cold wave, the sector is positioned for robust performance in the upcoming months, bolstered by seasonal demands and positive policy measures.
Looking forward, the approaching Kharif sowing season is likely to provide an added boost to the sales of agricultural vehicles, reinforcing the overall momentum in the transportation sector. With improving economic conditions and consistent demand for freight services, truck rental rates and vehicle sales are expected to continue on an upward trajectory in the near future.
