Heat wave leads to driver shortage, fall in fleet rates

The intense summer heat exerted its influence on fleet occupancy rates, which dropped to almost 60% as loaders and drivers decided to avoid working during the day in different parts of India, according to Shriram Mobility latest Bulletin. The report adds, High summer temperatures, along with fewer public infrastructure projects, caused a drop in truck rental rates along the major routes. A significant downturn in rental rates was observed in the routes spanning Delhi-Kolkata-Delhi, Delhi-Chennai-Delhi and Mumbai- Kolkata-Mumbai.

But as India gets ready for what is expected to be an ample monsoon season, tractor sales significantly increased in May. Sales of agricultural tractors increased by a significant 24% in May 2024, indicating strong demand attributable to pre-monsoon buying. Meanwhile, sales of commercial tractors increased by 20% in the same time frame, exhibiting strong month-over- month growth.

Fuel sales and FASTag collections also saw a substantial rise in May 2024 due to the rush of vacationers and election campaigners hitting the road. There was a notable 6% increase in toll revenues from month to month, which suggests that there are more cars on the highways. The amount of fuel consumed surged by 5% month over month to 3.45 million tons, the highest level since May 2023.

This increase can be attributed to the heightened presence of wheels on the road due to election campaigns and people venturing out during the holiday season. Similarly, diesel consumption also witnessed a substantial uptick, rising by 6% month-over-month to 8.39 million tonnes.