Freight rates on key trade routes as at Jan 1, 2020 declined ~2-2.5% over Dec 1, 2019.
This comes on the heels of ~1.5-2% m-o-m decline in freight rates as at Dec 1, 2019. Industry sources indicate that freight rates were impacted by weak industrial output and decline in the procurement of fruits/vegetables.
Diesel price was up 3.3% m-o-m as at Jan 1, 2020. Diesel costs typically accounts for 55-60% of the freight rates.
This could be a negative development for Logistics companies and CV players
Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.
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