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Coronavirus Lockdown: Here’s How Long It Will Take For Goods Transport To Normalise

Only 15 to 20 percent of the over 90 lakh trucks in India are back on the road, say industry leaders.

A vendor waits for customers while sitting on a truck at a whole sale market during a lockdown imposed due to the coronavirus in New Delhi, India. (Photographer: Anindito Mukherjee/Bloomberg)
A vendor waits for customers while sitting on a truck at a whole sale market during a lockdown imposed due to the coronavirus in New Delhi, India. (Photographer: Anindito Mukherjee/Bloomberg)

Starting April 20, the central government relaxed certain lockdown guidelines to restart select commercial activities such as the transport of goods. All goods, not just essential products as permitted in the first phase of what is now an over 40-day nation-wide lockdown. Yet, only 15 to 20 percent of the over 90 lakh trucks in India are back on the road, according to Naveen Gupta, secretary general of All India Motor Transport Congress. “Only the trucks which were stranded during lockdown phase 1 are allowed to move and go to their destination. That is the only movement. There are no fresh goods that are moving from one place to another,” he told BloombergQuint in an interview.

The reasons range from hurdles in accessing e-passes needed to travel across districts and states, to absent truck drivers, to lack of labour to load goods at factories and warehouses.

We aren’t able to open warehouses, consolidation is not taking place, parcel movement is not taking place, express movement is not taking place, Pradeep Singal, national president of All India Transporters Welfare Association, said to BloombergQuint. There is some movement of goods for export and import to ports such as Jawaharlal Nehru Port Trust in Navi Mumbai, especially for critical materials. But, Singal said, it’s a long way to normalise or to open the supply chain even for essentials.

Road transport accounts for about 60 percent of freight traffic in India.

It will take some more time I think, one to one and a half months before normalcy returns, even after the full lockdown is removed (May 4). For the markets to start, for factories to start, and the loads to be available from both sides.
Pradeep Singal, National President, AITWA
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Incentives Needed

Many truck drivers and their crew members returned to their home states when the nationwide lockdown was first imposed on March 24. The few remaining have attempted to operate in the face of frequent checks and often hostile local authorities. All food and stay facilities enroute are also shut. Singal expects that most will rush home when the lockdown lifts. And no labour will return to work any time soon after. “There’s no labour which is going to come back. Their families are not allowing them to come back, they are afraid of this virus, and they’re afraid of even the local people, the sarpanch. They are afraid of coming out. So, they need to be incentivised.”

The AITWA has recommended the government extend the health insurance coverage announced for health care workers, to truckers as well.

Gupta emphasised the need for quick financial assistance as well. 85 percent of the road transport industry is from the unorganised sector—or small fleet operators. While some relief is available, such as more time for insurance payments and a three-month moratorium on loans, these need to be extended for a longer time period, he said. States should also offer more time for local tax payments.

Because businesses and incomes will take time to recover.

Even if the government lifts the lockdown, it will take time to create demand because it will take time for production to restart. When the movement of trucks takes place, it will not be hundred percent back to normalcy, maybe initially 30-40 percent will open. Not everybody will be benefiting. For example, on May 15 the insurance has to be paid, because without insurance no truck can ply. Even for a single truck, average insurance will be Rs 50,000. Now, can we earn Rs 50,000 by May 15? Even if the lockdown is lifted on May 4.
Naveen Gupta, Secretary General, AIMTC

Coordination Needed

Besides financial assistance to get the industry back on its feet, especially smaller fleet operators, there’s a need for better coordination between governments and within government, Singal and Gupta said.

There are two different approaches of the government, Singal pointed out. “The Ministry of Home Affairs or the Ministry of Health, which is trying to control Covid-19, their target is to lessen the e-passes, they want to close everything just to control Covid-19 and they want to enforce the lockdown. If you see the targets of the commerce ministry or if you see the target or DPIIT, their targets are to open the economy or open the supply chain for the essentials at least. So, they are working in tandem, but at the ground level they are working on targets which are opposite to each other.”

States, especially those with high patient counts, are also proving difficult to navigate.

From the last three-four days we are facing problems in Gujarat, Maharashtra, Delhi and Haryana. Then we are facing problems in West Bengal, Telangana. In those areas, because Covid is a little more, they are more strict on lockdown.
Pradeep Singal, National President, AITWA

Gupta added to the list. Transporters are facing problems in states like Haryana, Punjab, Odisha, Assam, Uttar Pradesh. “Then we have to talk to them at the highest level, talk to them about the directives. So, these things will continue unless the ground level officials are made aware, are asked to implement the directives.”

Watch | Pradeep Singal and Naveen Gupta discuss hurdles facing goods transporters.