Truck Rentals Climb Ahead of Festive Season

Mumbai, September 16, 2024:Truck rentals across India have surged in anticipation of the upcoming festive season. Increased demand, driven by post-election activities and the reopening of the India-Bangladesh border, has contributed to the uptick. 

"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," said Y.S. Chakravarti, MD & CEO of Shriram Finance Ltd. 

The festive season’s approach, coupled with increased post-election activities, has significantly driven demand across various transportation routes. Notably, fleet utilization in the India-Bangladesh border region saw a significant improvement, rising to nearly 60% from the previous 40%. Resumption of trade activities between India and Bangladesh has particularly increased truck rentals in the Kolkata-Guwahati-Kolkata route, registering the highest surge at 3.0%. The Delhi-Kolkata-Delhi and Delhi-Hyderabad-Delhi routes also witnessed increases of 2.7% and 2.3%, respectively. Apple harvest and poll bound activity pushed up freight rates in the Srinagar region. Freight rates rose by nearly 10% in August, in this area. The Wayanad region experienced a rise in freight rates due to a reduced number of trucks, many of which are engaged in rehabilitation work.