Combined impact of loss of business due to COVID-19 and the sharp increase in fuel prices in the country, transporters and truckers have proposed a hike in tariff rates by 20-25% to their customers, citing heightened operational costs and a shortfall in manpower.
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This increase in tariff has been met with a lot of opposition from industries, however, transporters claim that even with a rise in demand for transportation, they are not even close to breaking even. The hike in fuel prices in the country has further added to their woes.
Transporters are worried that while demand may be gradually coming back to normal, they cannot risk running their operations in losses. They claim that the increase in diesel prices is slowly killing their livelihood and business.
Commenting on the same, Vijay Kalra, Vice President, All India Motor Transport Congress, West Zone, said, “Not all customers are willing to increase tariffs. They have their set of problems such as poor demand and low production but transporters are in deep crisis since lockdown. Earlier there was negligible business and now when there is load we are not able to operate.”
Currently, most of the loads in trucks are from industries, agricultural products, edible oils and essential goods. Transport demand has increased in the past few weeks with about 50 per cent vehicles back to business.
Transporters are also falling prey to the abysmal demand supply dynamic currently prevailing in the country. While they have proposed a hike in tariff, their customers are reluctant owing to a declining domestic demand.