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Logistics - Activity Picks Up In Dec; Freight Rates Edge Up Despite No Change In Diesel Prices: Motilal Oswal

Logistics - Activity Picks Up In Dec; Freight Rates Edge Up Despite No Change In Diesel Prices: Motilal Oswal

A Freight truck shipping container travels near Nhava Sheva Port in Navi Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)
A Freight truck shipping container travels near Nhava Sheva Port in Navi Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

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Motilal Oswal Report

Post the slowdown in November 2021, logistics activity picked up well in December. E-way bill generation jumped 17% month-on-month in Dec-21 and came in at 72 million (up 12% YoY), almost reaching the all-time high of October 2021.

Freight rates improved marginally by 4–5% during the month despite no change in the fuel prices. The demand environment remained robust with healthy consumer spending, improved exports, and wedding season linked demand. Capacity utilisation for trucks currently stands strong at 80–85% levels.

Volumes handled at major ports remained flat YoY at 63 million metric tonne (up 6% month-on-month).

Dec-21 saw YoY growth in the fertiliser segment, container traffic, and the petroleum, oil, and lubricants segment. Growth could have been better, but was negatively impacted by the container shortage and elevated sea freight rates.

Click on the attachment to read the full report:

Motilal Oswal Logisitcs Sector Update.pdf

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