COVID-19 impact | Even if truck rentals ease, where are the drivers, asks industry

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26 Aug, 2025 12:21

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The extended lockdown, shortage of drivers and non-availability of cargo for return trips had pushed truck freight rates higher by 35-60 percent thereby putting a strain on prices of even essential commodities.

A one-way movement of goods delivery meant a truck had to make a return trip with an empty cargo hold, which is otherwise filled with goods costing the supplier 20-30 percent less than the first trip.

For instance, a truck doing a Nashik-Delhi trip with 18-tonne payload would have cost Rs 45,000 and a return load would have cost Rs 35,000-40,000. So a round trip would have cost up to Rs 85,000. But when there was no return load available the truckers started charging Rs 75,000-80,000, one way.

There could be some respite in the coming days, with several industries and factories, since April 20, given the nod to restart operations and many of these are located in the ‘Green and Orange’ zones. These zones have allowed movement of labour and goods though in a controlled manner.

With the national truck capacity utilization expected to rise to 55-60 percent by the end of May from just 10 percent in April, there is a wide-spread expectation of some moderation in truck rentals.

“Government has now allowed the opening of booking and delivery offices of the transporters too. During this week and next, the freight market will settle down. The freight rates will be rationalized because there will be some return load also available. They should come back to the levels of March 15. Drivers have started coming back but it will still take about a week for them to reach the levels of pre-lockdown,” said SP Singh, senior fellow and coordinator, Indian Foundation of Transport Research and Training.

Transport by road forms a very important link in free movement of goods across the country. Currently, freight transport in India is road-dominated, accounting for 59 percent of freight movement. 35 percent of freight demand is met by rail, 6 percent by waterways and less than 1 percent by air, as per data shared by the NITI Aayog.

Driver shortage

While return load may now be available since the recommencement of businesses across states, transporters will be grappling with a bigger challenge which is driver shortage.

Umesh Revankar, Managing Director, Shriram Transport Finance Company said, “By the time the drivers come back it will be another month or so. Only by mid-June, there will be a reduction in freight rates. Freight rates are 30-40 percent higher now as there is no visibility in return freights.”

“By the end of this month, the fleet utilisation should be 55-60 percent because most of the manufacturing operations have started and that means movement of raw materials and finished goods. Harvesting is also going on in full swing. More and more trucks are getting added,” Revankar added.

As little as 7 percent of the drivers and cleaners employed in the organized sector get salaries whereas others are dependent on freight-linked wages and ownership business model for earnings. A majority of truck operators in India belong to the small category having a fleet of 1-5 trucks. These have been under financial duress for several months.

SK Mittal, Chairman, All India Motor Transport Congress (AIMTC) said, “Car carriers have opened and drivers are coming back. The freight rates should be coming down in the coming weeks. There are 12.5 lakh trucks with the national permit. Out of this 85 percent have a fleet of 1-5 trucks and are categorized as ‘small operators’. Then there are 1-2 lakh driver cum owners. Many of these small operators are on the verge of collapse. There are loan defaults of up to six months default on many truckers.”

AIMTC represents about 93 lakh truckers and approximately 50 bus and tourist operators. It is an umbrella body of covering over 3300 talukas, districts and state-level federations and transport associations.