As the festival season is weakening, with truck operators expecting road freight rates to be 5-10% lower than in early October. The reason can be heavy rains in the south and low agriculture.
Inflation is an issue, with diesel prices rising and electronics and durables slowing by 5-6%. Hemal Thakkar, director of market intelligence and analyst at CRISIL, said fares were up 3-4% of his in the first 15-20 days of October.
AITMC President also stressed that fares will drop after Diwali due to unseasonable weather, etc. With road freight rates for transporting cars falling by 15% as manufacturers like Maruti have increased their use of trains for transport.
Truck rentals on trunk routes slid 4-5% "as cargo offerings slumped in the last fortnight after peaking during Diwali consequently, the gains made during October by way of 3-4% rental increase were eroded.
Road freight traffic could rise again within a month, depending on weather conditions and the economic outlook. Over the next 15-20 days, the truck driver will grow paddy fields. This will help give many businesses a little boost.