Gradual decline in dispatches by small medium enterprises (SMEs) has hit truck rentals for the months of April and May 2012. The truck rentals on long distance roads have plummeted between seven per cent and nine per cent in April and May, r
Gradual decline in dispatches by small medium enterprises (SMEs) has hit truck rentals for the months of April and May 2012. The truck rentals on long distance roads have plummeted between seven per cent and nine per cent in April and May, respectively after the SME sector saw a fall of 15 per cent in its cargo traffic.
As per a report generated by the Indian Foundation of Transport Research and Training (IFTRT), overall, cargo flow from the manufacturing sector has seen a 10 per cent drop, thereby, impacting rentals while the cargo offerings from SMEs as compared to large manufacturing units appear to be performing negatively.
“In the present circumstances, there seems to be very little hope that truck rentals will recover before September 2012. The increase in compensatory load from wheat procurement, increased arrival of mango and other summer fruit and vegetable crops has not been enough to stem the decline” adds the IFTRT report.
However, prior to this, the months of January and February witnessed a five per cent to six per cent increase in rentals while it remained firm in March. In contrast, the electronics, textiles and FMCG goods segment have been steady in terms of its dispatches in April and May via road cargo.
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