Small transporters face rising costs and stagnant freight rates

Small truck operators are facing sharply higher operating costs while freight rates have remained largely stagnant, threatening the viability of their businesses. Road transport carries nearly 70 per cent of India’s domestic freight. Diesel accounts for about 60 per cent of a truck’s operating cost, while expenses for AdBlue, tyres, insurance, repairs, finance, tolls and compliance have also risen.

Transporters also face penalties linked to electronic challans and technical problems connecting vehicle location tracking devices with the Vahan portal. Some vehicles have reportedly remained off the road for weeks or months, increasing income losses and loan repayment pressure. The sector also lacks enough secure parking, clean toilets and rest areas despite high toll payments. The article calls for cost-based freight rates, rationalised tolls, stronger safeguards on enforcement, reconsideration of mandatory tracking devices for goods vehicles and faster development of highway amenities.