The truckers who have bought trucks with 50-100% institutional finance will see a tough time due to COVID 19 and need to maintain 90% capacity utilisation for upcoming EMIs, Insurance premiums & Permit with same freight cost in spite of high diesel cost.
The Government is investing ₹ 20-30 Tn (15% via PPP) in transport infrastructure with focus on rural & last mile connectivity & increase in outlay of 39% to PMGSY.
Government Change in Regulations such as Revision in GST norms to increase the transparency, Restrictions on the age of trucks and Revision in Axle Load Norms to Bring GVW at par with Global Markets will impact the Road freight market.
Covid-19 Impact on Trucking Industry in India: During the Lockdown phase, Imports and Exports have fallen from major trading partners such as China, US and UAE affecting the road freight volumes transported from ports to other parts of India. Majority of the truckers are Small fleet operators who are the worst hit as they need to maintain 90% capacity utilization in order to bear additional expenses such as EMI, Insurance Premium and Permits. LFO s and MFOs who are more inclined towards Asset light model are even affected due to shortage of Drivers and labourers. The trucking will see negative growth rate in the FY’2021 due to complete lockdown and transportation of only essential commodities, but is expected to revive back in FY22.
Revision in Road Freight Norms by Government: The government regulations such as axle norms increasing Maximum Possible Payload reducing freight rates, phasing out older & polluting vehicles that are over 15 years old, GST to Increase Transparency, Reduce Delays and Administration Costs will Impact the Road Freight Industry.
Adoption of New Technology: Companies have started adoption of new technologies such as TMS, GPS for real time tracking assuring transparency to their clients. Larger Domestic Companies are even moving towards Asset Light Model having tie ups with Local Subcontractors. Digital Freight brokerage platforms such as Rivigo, Truckola, Trucksuvidha and many more are being very popular in India and are used by many companies for short and long hauls solving the problem of empty returns and maintaining their margins.
Analysts at Ken Research in their latest publication “India Road Freight Market Outlook to 2024 – Driven by BS VI Norms, revision in Existing Axle Norms by the Government and Technological Advancements” believe that the Road Freight Market in India is expected to grow due to rising Competition in Road freight market, Rising Digital aggregator Start ups for trucking and e commerce market, Introduction of GST, E way Bills, Fastags along with Technological Advancements.
Key Segments Covered:-
Freight Forwarding Market
By Mode of Transportation
Road Freight (Fleets, Volume, FTK, Price/ton/km and Revenue)
Sea Freight (Volume, Price/ton/km, Revenue and Inland Coastal Shipping Price/ton/km)
Air Freight (Volume, Price/ton/km and Revenue)
By Road transportation
Less than Truck load (Revenue)
Full truck load (Revenue)
By Type of Fleets (Number of Fleets)
Less Goods Carrier Vehicles
High Goods Carrier Vehicles
Aggarwal Packers and Movers
Associated Road Carriers
Stellar Value Chain
Andhra Bangalore Roadways
CTC Freight Carriers
Key Target Audience:-
Freight Forwarding Companies
E Commerce Logistics Companies
Time Period Captured in the Report:-
Historical Period – FY14-FY19
Forecast Period – FY20-FY24
Key Topics Covered in the Report:-
India Logistics and Warehousing Market Introduction
Cross Comparison of Logistics Performance in Different Countries (Germany, US, India, Australia, China, Vietnam, Philippines)
India Logistics and Warehousing Market Size
India Logistics and Warehousing Market Segmentation
India Logistics and Warehousing Market Future Outlook
India Logistics And Warehousing Market Future Segmentation
India Freight Market Size
India Freight Market Segmentation
India Freight Market Future Outlook
India Freight Market Future Segmentation
India Trucking Market Size
India Trucking Ecosystem
India Trucking Market Segmentation
India Trucking Market Future Outlook
India Trucking Market Future Segmentation
Innovations in Transportation Market
Investment Model on Road freight transportation
Issues and Challenges
For More Information on the research report, refer to below link:-
Philippines Logistics And Warehousing Market Outlook To 2024 – By Freight Forwarding (Air, Sea, Land), Domestic And International Freight Flow Corridor; By Warehousing (Industrial/Retail Freight, Container Freight, Cold Storage, Agriculture And Others), Express And E-Commerce Logistics, Balikbayan Box, Third Party Logistics
Ankur Gupta, Head Marketing & Communications