Coronavirus pandemic | Truckers missing in action, transportation costs zoom

Source: Shivam Vahia

To check the spread of coronavirus, India on May 3 extended the nationwide lockdown for the third time for another 14 days but eased restrictions in areas free of the viral infection or with a few cases of COVID-19, the respiratory disease caused by the virus.

As more than 1.3 billion people stayed in, factories stopped, shops shuttered, offices closed and so did schools and colleges. The restrictions were eased so that the economy that ground to halt for more than 40 days could re-start, even if in a limited manner.

For the country of India’s size, one of the biggest challenges is its disrupted supply chains.

The truck drivers, responsible for bringing the latest iPhone to the season’s pick of the Alphonso mango to our doorstep, are missing from the scene.

Trucks account for 60 percent of India's freight movement. Trains, too, share a significant burden but cannot offer last-mile connectivity like trucks.

Where are they

When the lockdown was announced from March 24, most factories were shut, as food and medicines were a priority. No one but those involved in essentials services could move around. Suddenly, truckers had nothing to do and decided to go back home.

"A lot of drivers abandoned their trucks, filled with goods, on the side of the highway and went home immediately after the lockdown was announced," the CEO of a Bengaluru-based logistics company told Moneycontrol.

"Drivers are tough to find right now. The sudden shortage has led to an increase in their wages but that's still not enough to bring them back quickly."

Follow our LIVE blog for the latest on the coronavirus pandemic

The All India Motor Transport Congress, an industry body, claims that daily movement of trucks is not even at 10% of the normal levels.

The spillover 

Crude oil is hovering around its lowest levels amid a slump in global demand but the benefit hasn’t been passed on to consumers.

India on May 4 raised by Rs 13 the excise duty on diesel and Rs 10 on petrol to shore up revenues. A government official said retail prices will remain unchanged as the hike will be absorbed by oil marketing companies.

Some states, including Delhi, have also increased the value-added tax on fuel.

Crude has dropped from $60 per barrel at the beginning of the year to around $24 now, but it hasn’t translated into cheaper transportation.

Transportation charges are three times the normal rates, business owners who rely on imports told Moneycontrol. In some cases, the increase is even higher.

They're now planning another hike as more and more industries slowly start getting back on track, and the demand for transportation rises.

“Right now, we’re seeing a rise of at least 20-30% in freight charges. But, this rise could take some time to correct. Migrant drivers want to go home amidst economic uncertainty while industries are slowly getting back on track, indicating a rise in demand,” the executive said.

The driver shortage has also pushed up the cost of hiring a vehicle. If companies pay more to transport goods from factories or ports to retailers, the increased cost will be borne by the consumer.

Costly diesel has also hit international logistics companies that provide end-to-end services.

Their contracts allow for changes in global oil prices to reflect in the cost of transportation but they count for little as the government is not reflecting the change in crudes rates after refining it.

Food and fear

"Food is the prime reason they aren't confident about returning. Drivers rely on roadside dhabas (eateries) while travelling across states. With a lockdown in place, they are on their own out there," the logistics company executive said. "We are trying to get them back on the road, but have found little success so far."

Moneycontrol recently spoke to some truck drivers on the Mumbai-Ahmedabad National Highway. "We're going through multiple districts in a day. We can carry some basic ration on our own. But that's not enough. And in unknown areas, how are we supposed to feed ourselves," said Basant Singh, who is from neighbouring Rajasthan.

As they keep moving, it wasn’t possible to get help from NGOs or other state-run welfare schemes.

They are also worried about their safety. "Every district has its own rules, especially when you are passing through relatively unknown areas via a state highway. The local administration treats us like outsiders and indirectly suggests we could spread the virus in their region because we are constantly on the move," Amol Holkar said.

Their only protection against the highly contagious virus is a flimsy cloth mask and some soap. Most logistics companies are yet to provide proper safety equipment to drivers.

The lack of guidelines or directives from the road transport and highways ministry has created a gray area as far as safety norms and regulations are concerned.

Get going

The government needs to address drivers’ concerns. Eateries along highways should be allowed, irrespective of a red or an orange zone, but with social distancing and a sanitisation drill.

The drivers’ fears about the virus have to be addressed. Logistics companies should be asked to look after their employees or partners.

To ally drivers’ fears, confidence-building measures can include proper protective equipment and an awareness drive.

As it extended the lockdown, the home ministry wrote to the states not to stop trucks at borders. It has also set up a control room to address complaints of truck drivers and transporters. Local administration should be instructed by the Centre to prevent harassment of truckers.

Like all other sectors of the economy, the truck industry also needs a stimulus.

A cut in fuel prices will be a good start. As most logistics companies take loans to buy trucks, with no cash flow for more than 40 days, many are staring at default.

An extended moratorium on repayment will ensure that businesses don’t lose equipment and the industry can get back on track.

(The author writes on technology, aviation, and mobility.)