Increased Government Spending: The government under the budget of 2020-2021 has allocated INR 170,000 crore for Transportation which is 8% higher than the budgetary allocation of 2019-2020. The National Infrastructure Pipeline for 2019-2025 pegged the projected capital expenditure for Transportation (covering Roads, Railways, Ports and Airports) at about INR 35.7 lakh crore. Various efforts include Bhratamala Pariyojana and the Sagarmala Project, Bangalore suburban transport project and many more.
High seasonal demand variation: The demand for trucking in India is the highest during Festive Months (Sept, Oct, Nov, and Dec) and harvesting Months (February to April) where the occupancy of trucks can rise by 30-40% along with freight fluctuations of 6-7% in comparison to normal freight rates prevailing in the trucking Industry.
Change in Government Regulations: The government is constantly changing the regulations associated with trucking industry such as Restriction of trucks above age of 15 years to phase out older & polluting vehicles from the country. GST has shifted all manual transactions to digital mode with e way bills and Fastags ensuring more transparency into the system. The government has even revised Axle norms to increase load capacity that have impacted Small fleet operators negatively.
Improving Cold Transportation: India exports huge variety of Fruits and vegetables which require Cold Chain Services which are extensively being used now-a-days in India. Inspite of huge Cold Storage Capacity, the country still lacks in Cold transportation services with only 30k refrigerated containerized trucks available on road. In the past few years many food and meat processing companies such as Hibachi, Tendercuts, Zappfresh and more who require Cold transportation is being catered by many cold transporters such as GATI KWE, DHL Smart trucking, Snowman, Coldman logistics and more providing Integrated Logistics Solutions and positively impacting Road freight market of the country.
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 Government spending on Roads, Ports, Inland Coastal Shipping to reduce congestion in metropolitan Cities, increasing E commerce sector, Revised Axle norms that have reduced freight Cost and increased the capacity of trucks in India.
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
Companies Covered:-
GATI-KWE
VRL Logistics
TCI
OM Logistics
DGFC
Varuna
Express Logistics
Aggarwal Packers and Movers
NTC Logistics
FSC
Associated Road Carriers
KerryIndev Logistics
Coastal Roadways
Stellar Value Chain
Sical Logistics
VTrans
CEVA
Anand Roadlines
Southern Cargo
Andhra Bangalore Roadways
DHL
CTC Freight Carriers
Mahindra Logistics
ALL Cargo
TVS
Key Target Audience:-
Freight Forwarding Companies
E Commerce Logistics Companies
3PL Companies
Consultancy Companies
Logistics/Warehousing Companies
Time Period Captured in the Report:-
Historical Period – FY14-FY19
Forecast Period – FY20-FY24
For More Information on the research report, refer to below link:-
Related Reports:-
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249