The Daily average e-way bill generations were up 28% YoY and 6% MoM in Apr’22 with fleet utilization levels standing at 80-85%. With strong demand pick-up in the second half, logistics operators were able to take price hikes in the range of 4-5% that offset the sharp rise in diesel prices over Mar-Apr’22.
Volumes handled at major ports rose 6% YoY to 65mmt. Fertilizer/Petroleum, Oil, Lubricants (P.O.L) /Other Cargo reported growth of 14%/12%/16% YoY, respectively, in Apr’22, which was offset by a sharp decline in the Iron Ore segment by 17% YoY. Growth was impaired by the container shortage and elevated sea freight rates.
While the overall container volumes handled at ports remained flat YoY, EXIM container volumes handled by Indian Railways increased 7% YoY in Apr’22. The Railways’ market share in EXIM containers stood at ~33% in Apr’22 (v/s ~31% in Apr’21). Domestic container volumes handled by Railways rose 26% YoY in Apr’22.
The diesel prices at retail outlets have been on the rise owing to sharp increase in the Global crude prices. With strong volumes in the second half of Apr’22, fleet operators managed to undertake a freight price hike of 4-5%, which was sufficient to cover the rise in costs. The next couple of months would be crucial to watch if transporters are able to pass on any further increase in diesel prices. MOFSL’s top picks in this space continue to be VRL Logistics.
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