According to the latest report of Shriram Mobility Bulletin, the demand for truck rentals has been on the rise since August 2024. This growth can be attributed to the festive season and the post-election activities.
The report says that the utilization of trucks in the India-Bangladesh border region has significantly increased, reaching nearly 60% from 40% of the previous year. The spike in trade activities between the two countries has led to a surge in truck rentals on the Kolkata-Guwahati-Kolkata route, witnessing the highest surge of 3%.
The Delhi-Kolkata-Delhi and Delhi-Hyderabad-Delhi routes have also witnessed increases of 2.7% and 2.3%, respectively. The rise in demand for truck rentals has been fueled by the apple harvesting and related activities, which have led to higher freight rates in the Srinagar region. The region has witnessed a rise in freight rates of nearly 10% in August.
The report further states that the reopening of trade at the India-Bangladesh border has boosted fleet utilization in the region. However, the recent floods in Gujarat have created logistical challenges, which are hampering the recovery of Andhra Pradesh and Telangana, which were severely hit by the floods.
Mr. YS Chakravarti, MD & CEO, Shriram Finance Ltd. said, “As the festive season approaches, companies across India are intensifying their efforts to boost production and supply, causing an uptick in truck rentals on key routes. The Srinagar area is particularly active due to the apple picking season and pre-election activities, which are driving up freight rates. Additionally, the reopening of trade at the India-Bangladesh border is leading to higher fleet usage in that region. However, the recent floods in Gujarat have led to logistical challenges. As we observe the situation, there is a cautious anticipation to see how quickly Andhra Pradesh and Telangana will recover from the devastating floods.”