Truckers' losses mount to ₹42,000 cr due to lockdowns, rentals slump by 5-7%

With several state governments across India imposed strict lockdowns to curb the rising cases of Covid-19, the logistics and transport sector is one of the most impacted ones. The trucking industry has witnessed its losses increased to around ₹42,000 crore from the start of FY22 till the mid of May 2021, as revealed by the All India Motor Transport Congress (AIMTC).

As AIMTC claims, the transport sector, the lifeline of the country and essential services provider to the people, bears the first impact of the lockdowns and the curfews. The organisation claims that with almost 80% of India under lockdown, around 65% of the total 95 lakh strong truck fleet in the country is standing idle, as there is no demand.

According to the Indian Foundation of Transport Research and Training (IFTRT), the slump in factory output due to the lockdowns in states has resulted in a slump in truck rentals on the key routes by 5-7% in the past 15 days. With this, the trucking industry's per day losses have gone up to ₹1,600 crore in May 2021 from ₹400 crores at the beginning of April 2021.

AIMTC Core Committee Chairman Bal Malkit Singh said that in the first 15 days of April 2021, the trucking industry was facing a ₹400 crore loss per day, which increased to ₹800 crore per day by April 30. "They have now doubled to ₹1,600 crore per day till May 15. So, as of May 15, the industry's cumulative losses were a whopping ₹42,000 crore," said Singh.

Besides the slumping demand and lockdown restrictions fuelling loss for the Indian trucking industry, the rising diesel prices too are hammering the ailing sector.

Considering the scenario, the trucking industry is seeking relief measures from the government. The trucking industry is expecting the government will provide relief measures such as EMI moratorium, soft loan provision without collateral, tax waiver, the extension of validity of insurance among others.