Mumbai: Capacity utilisation for road transporters in August has improved to more than 60%, as economic activity gathered pace and commercial vehicle traffic on highways reached 80-90% of the pre-Covid times.Transportation of goods such as agricultural produce, FMCG, pharmaceuticals, iron ore and ecommerce consignments aided the upwards trend. Demand to carry automobile components, two-wheelers, cement and steel is also gradually improving.Capacity utilisation for road transport companies has been improving month-on-month since falling to around 30% in May, but there is still a long way to go to reach normalcy, transporters said. “The situation is slowly improving. Right now, there is about 60% capacity utilisation across the country and it could go up to 80% during Diwali,” Chetak Logistics director Sachin Haritash said.The demand recovery was not evenly distributed across the industry. Operators who own 1-10 vehicles are worse off than their larger, organised counterparts. Small operators are generally attached to larger transporters and rely on them for receiving consignments.“In a scenario where demand is subdued, large fleet operators are prioritising own fleet utilisation over small fleet operators,” Crisil Research director Ajay Srinivasan said.
Friday, August 28, 2020
Relief for road transporters as capacity utilisation rises | Economic Times
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