Big step of the transport industry: Freight increased on 90% of the routes of the country in April, the reason given for the increasing price of diesel.

The effect of increase in diesel prices is visible on freight rates. According to rating agency Crisil Research, the transporters have started increasing the freight, passing the burden directly on the consumers. Freight has been increased on 143 (90%) routes out of 159 transport routes in the country.

However, the movement of trucks remained stable during this period. CRISIL Research’s Pan India Freight Index has reached an all-time high of 129 due to increase in freight. This is 29 points more than the base level of October 2020. According to the report, free cash flow of transporters declined by 200 basis points despite the increase in freight charges.

Extended for all commodities

There has been an increase in the freight rates of all the commodities. FMCG i.e. fast selling goods, loose goods and minerals saw a double digit increase in freight, while it was single digit in petroleum, steel and clothing.