Heat Wave Reduces Truck Rentals, Fleet Occupancy In May

Mobility Outlook Bureau
07 Jun 2024
03:36 PM
1 Min Read

In contrast, tractor sales saw a substantial increase in May as India prepared for an anticipated ample monsoon season; agricultural tractor sales surged by 24%.

Fleet occupancy

Shriram Mobility Bulletin, an initiative by Shriram Finance Ltd to provide stakeholders with a picture of India’s economy, has noted that the intense summer heat significantly impacted fleet occupancy rates, which dropped to nearly 60% as loaders and drivers avoided working during the day in various parts of India. High temperatures, coupled with fewer public infrastructure projects, led to a decrease in truck rental rates on major routes, including Delhi-Kolkata-Delhi, Delhi-Chennai-Delhi, and Mumbai-Kolkata-Mumbai.

In contrast, tractor sales saw a substantial increase in May as India prepared for an anticipated ample monsoon season. Agricultural tractor sales surged by 24%, indicating strong pre-monsoon demand, while commercial tractor sales grew by 20%, reflecting robust month-over-month growth.

Fuel sales and FASTag collections also experienced a significant rise in May 2024, driven by vacationers and election campaigners. Toll revenues increased by 6% month-over-month, suggesting more vehicles on the highways. Fuel consumption rose by 5% to 3.45 million tonne, the highest level since May 2023, and diesel consumption increased by 6% to 8.39 million tonne.

Despite a dip in infrastructure activities, the demand for summer essentials like air conditioners, coolers, refrigerators, and seasonal fruits kept transportation trucks busy. Bulk cargo volume at major ports increased by 7% compared to the previous month and 6% year-over-year, totaling 71.9 million tonne. Deendayal Port in Kandla handled the most bulk cargo, while the Kolkata Dock System handled the least. Containerised cargo also saw growth, reaching 1081 TEUs (in thousand nos.) with a 5% month-over-month and year-over-year increase, indicating a rebound in trade activity.

'The oppressive summer heat reduced fleet occupancy to 60%, but the promise of a good monsoon boosted tractor sales in May. Holiday travelers and election campaigners, along with increased export-import activities, drove up fuel consumption and FASTag collections. Despite a dip in public infra-activity, the demand for summer goods kept our trucks rolling, showcasing the indomitable spirit of our logistics network,' said YS Chakravarti, MD & CEO of Shriram Finance Ltd.

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