Browse Category: Logistics

Truck rentals down 1.5% on drop in cargo availability, delays in return load

Drop in cargo availability coupled with delays in return load from the manufacturing sector has resulted in truck rentals declining by 1.5%.

This is despite a hike of INR 3.52 a litre in diesel prices in June. July too may not witness any visible buoyancy or major fluctuation in truck rentals on trunk routes.

Operators could not pass on the burden owing to a drop in cargo volumes, said Indian Foundation of Transport Research and Training (IFTRT), the apex body tracking the truck industry.

During June 2016, there was an all-round drop in cargo availability led by 15% lower arrivals of fruits and vegetables in APMCs and about four-five days delay in availability of returned load from manufacturing sector; even the cargo availability from cement, fertilizer and timber was just steady.5_b

Ever since diesel price was deregulated in October 2014 with a rider for OMCs to have fortnightly price revisions in line with international crude oil price and rupee-dollar parity, truck rentals for the first time in the last 21 months broke away from direct relationship in freight rate movement in relation to revision in diesel price.

During June 2016, truck rentals could not only absorb the substantial diesel price hike of INR 3.52 a litre but also dropped by 1.5% on most trunk routes, while the open market was expecting a 3.25% increase.

According to the foundation, the sudden reversal in rental movement delinked from diesel price was mainly due to a fall of over 15% in the arrival of fruits and vegetables and other agri products like pulses into the AMPCs and wholesale grain markets.

Source : http://goo.gl/X6UJD1

PM scheme on anvil to make roads safer; to have Rs 2,000 crore initial fund

The government will take the help of the Indian Institutes of Technology to prepare special reflectors for hill roads and redesign them to fix sharp curves.

NEW DELHI: India’s roads notorious for being the world’s deadliest will soon become safer with the launch of the Pradhan Mantri Surakshit Sadak Yojana. The scheme, with initial funding of about Rs 2,000 crore, will eliminate dangerous spots on highways that are the sites of frequent accidents through better design and road engineering and will set up railings on hill roads running along deep gorges.

The Ministry of Road Transport and Highways has sought details from hill states on spots where accidents occur repeatedly. The government will take the help of the Indian Institutes of Technology to prepare special reflectors for hill roads and redesign them to fix sharp curves.

“The scheme has already been approved by the road transport minister and the corpus would be created from the available central road fund,” a senior government official said.

download (1)India has the highest number of roads fatalities in the world. More than 231,000 people are killed in road traffic crashes in the country every year, according to the World Health Organisation. “States have already been asked to send details of locations where regular accidents occur. As per our information, there are around 796 such spots across the country,” the official added. The scheme is a part of the government’s national action plan aimed at the halving number of road accident deaths by 2020, which includes making vehicles safer.

The government will start awarding star certification to car models based on safety. A specialised agency, the Bharat National Car Assessment Programme, is being set up to test and grade the safety of cars sold in India. The ministry is also introducing new safety norms for two-wheelers, which account for 72% of the vehicles on India’s roads and more than half of the fatalities in road accidents.

According to the proposed norms, all scooters and motorcycles in India will have automatic headlamps on, similar to daytime running lamps in cars. Road deaths lead to an economic loss of 2-3% of the gross domestic product, apart from causing social trauma, road transport and highways minister Nitin Gadkari said in a letter to the finance ministry recently.

India will make first-aid training and knowledge of basic lifesaving techniques mandatory for drivers of heavy commercial vehicles including buses and trucks so that they become the first response and trauma care providers for road accident victims. The drivers will get licences only after completing the certified training.

Source:- http://goo.gl/fWQ8aN

DB Schenker opens logistics centre in Bhiwandi, near Mumbai

Schenker India Private Limited the transport and logistics division of the € 40.4-billion Deutsche Bahn Group has announced the opening of its third Schenker Logistics Centre (SLC) in Bhiwandi. Spread over 200,000 (approx.) sq. ft, the SLC is one of the largest logistics centres in the area and would be providing integrated logistics solutions to businesses involved in baby care, mother care, fire protection, camera and accessories, and bathroom fittings, informed a release.

Strategically located at a distance of 3 kilometer (km) from NH-3 (Mumbai-Nashik Highway), 60 km from JN Port and 60 km from NH-8 (Mumbai-Ahmedabad Highway), the logistics centre comes with material handling equipment like reach trucks, stacker and forklifts, and features warehouse height (side) of 30 ft, centre 38 ft, turbo ventilators and louvers, and three-phase electricity connectivity. The proposed western dedicated freight corridor is just 0.5 km from the new warehouse, the release pointed out.

Commenting on the development, Oliver Bohm, CEO, Schenker India Private Limited, said, “The western industrial corridor is one of the busiest in India with a high concentration of existing and upcoming manufacturing units.” This creates an immediate demand for effective logistics and warehousing solutions. Our new Schenker Logistics Centre (SLC) in Bhiwandi, with its strategic location, is well placed to cater to the logistics requirements of customers in the region.”

Source:- http://goo.gl/Q3IeSf

Logistics Stocks Shine As Assembly Poll Results Bolster GST Hopes

Shares of logistics companies like Allcargo Logistics, Gati, Snowman Logistics and VRL Logistics rallied sharply on Thursday, rising by as much as 10 percent in a weak market. Traders said the BJP’s good performance in the recently-held assembly elections has led to renewed hopes of the Goods and Services Tax (GST) Bill being passed in Rajya Sabha. The GST – which creates a single national sales tax to replace a matrix of unwieldy and complicated levies by the states and central government – is stuck in the Rajya Sabha, where the BJP is in a minority.

Logistics companies will be the biggest beneficiary of the GST implementation as it will facilitate the seamless movement of goods across the country. The BJP is set to form the government in Assam while it has also increased its vote share in Tamil Nadu, West Bengal, and Kerala. K.K. Mital, head of portfolio management at Globe Capital Market, said a BJP victory in Assam will be positive for the government as it will be able to push forward its reform agenda more strongly.

Analysts, however, noted that the BJP’s strong performance in state elections is unlikely to increase its tally in Rajya Sabha. According to Nomura, the five states that went to polls account for 51 seats in the Upper House, of which six will come up for re-election in 2016 (all in Tamil Nadu), six in 2017 (all in West Bengal) and eight in 2018 (West Bengal and Kerala). The BJP’s victory in Assam will not help, as none of the seats (seven in the Upper House) are up for re-election until 2019, the brokerage said.

Source:- http://goo.gl/u70p2J

Election Impact! Logistics stocks close higher on GST hopes

The shares of logistics companies closed higher on the counter, as BJP and regional parties have put up a good show in the just concluded regional elections.

The shares of logistics companies closed higher on the counter, as BJP and regional parties have put up a good show in the just concluded regional elections. West Bengal CM Mamata Banerjee said to a press gathering that TMC will support the passage of GST in Rajya Sabha during the monsoon session. After this electoral debacle, it will become increasingly difficult for Congress to block GST in the upper house, as most regional parties are more or less on the same page in regards to GST.

Allcargo Logistics is planning to invest Rs.130 crore to buy a controlling stake in CCI Logistics, as per media reports. On February 15, it got an in principle board approval to buy a majority stake in CCI, a company in freight forwarding and contract logistics with a special focus on chemicals.Allcargo Logistics Ltd ended at Rs. 153.1, up by Rs. 7.85 or 5.4% from its previous closing of Rs. 145.25 on the BSE.

Patel Integrated Logistics Ltd ended at Rs. 99.15, up by Rs. 4.8 or 5.09% from its previous closing of Rs. 94.35 on the BSE. The scrip opened at Rs. 94.3 and touched a high and low of Rs. 104.3 and Rs. 93.65 respectively. A total of 788018(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 149.89 crore.

VRL Logistics Ltd ended at Rs. 394.55, up by Rs. 3.65 or 0.93% from its previous closing of Rs. 390.9 on the BSE. The scrip opened at Rs. 393 and touched a high and low of Rs. 415 and Rs. 392.1 respectively. A total of 463698(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 3566.71 crore.

Sical Logistics Ltd ended at Rs. 134.9, up by Rs. 0.4 or 0.3% from its previous closing of Rs. 134.5 on the BSE. The scrip opened at Rs. 138 and touched a high and low of Rs. 140 and Rs. 133.1 respectively. A total of 155439(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 747.82 crore.

Snowman Logistics Ltd ended at Rs. 58.2, up by Rs. 0.75 or 1.31% from its previous closing of Rs. 57.45 on the BSE. The scrip opened at Rs. 57.2 and touched a high and low of Rs. 61.3 and Rs. 56.75 respectively. A total of 4159140(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 959.92 crore.

Source:- http://goo.gl/vFQVOM