Road transporters worried: Expensive fuel hurting small fleets | Economic Times

MUMBAI: India’s road-cargo business faces the threat of disruptions from small fleet owners due to persistent increase in fuel prices and what such carriers described as ‘indifference’ of the authorities, compounding the problems of an industry that is battling low haulage tariffs and utilisation.The impact of possible industrial action, the murmurs of which have already been felt in states such as Kerala, Madhya Pradesh and Uttarakhand, threatens the movement of essential goods and food items – consignments that dominate road transport these days. Utilisation levels are still at 35% for non-essential and 65% for the essential categories. “Apart from the increases in diesel prices, the indifference of the authorities has also de-stabilised the road transport ecosystem,” said Kultaran Singh Atwal, president of the All India Motor Transport Congress.Officials at the relevant departments, including transportation authorities, were not available for comments. Diesel accounts for 60-65% of the total operating costs in road logistics. Transport operators say that RTOs in states such as Madhya Pradesh, Bihar, Rajasthan, West Bengal and Maharashtra ask for Rs 2,000 to Rs 3,000 per entry. “The RTOs are hurting poor truckers already burdened with high diesel prices and low freight,” Atwal said.Freight rates for operators have failed to catch up with rising diesel prices as few large players work on contracted rates, leading to demand-supply mismatch. For large fleet operators, fuel price increases are built into contracts and freight rates can be revised accordingly. “It's an ongoing tussle between the customer and operators to increase freight rates,” said Mukesh Haritash, director, Chetak Logistics, a large fleet operator based in Delhi.