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  • Trukky Freight Index

    The Road freight industry in India, because of its highly fragmented nature, is notorious for highly dynamic and opaque pricing. The spot market prices changes on daily basis if not hourly and the prices are sensitive to multiple issues like availability of vehicles, seasonality, industry, services and other operational parameters.

    As 75% of the Trucks are owned by single drivers cum owners/small feel owners , the operations are majorly dominated by brokers, who governs the value stream today and are able to control a position only due to lack of visibility of both supply & demand. Further due to low penetration of Technology which ensue poor flow of information, the pricing structure in Industry is extremely opaque resulting in higher average logistics cost for companies and as well as lower income for small Truck owners.

    Pricing & truck availability today is a major operational bottle neck and are key reasons for lack of organized players in this industry. Both tech and non tech players find it difficult to operate and scale up in the spot market, enabling the brokers to enjoy majority of market share.

    Trukky, an online transport service which predominantly operates in the spot market with instant pricing and truck availability, enables SME consumers to not only get competitive prices but also book transport service instantly without haggling with multiple brokers.

    In addition to full truck load Trukky offers customers unique load sharing service enabling consumers to transport shipments right from 100 Kg and pay only for space utilized in the consignment .

    Trukky, through its unique and proprietary pricing engine, is able to capture market dynamism and measures more than 10 variables simultaneously to drive competitive prices on the platform. The pricing engine is in turn supported by a Price Index which ensures swift price corrections and is efficient enough to measure changes on an hourly basis.

    The price index named Trukky Rate Utility Index (TRaUI Index) is already live on portal for consumers and industry experts to track & study daily changes in Freight rates and going forward the index would trend hourly rate changes.

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    Trukky Index, is an unique initiative by Trukky which will not only allow a detailed analysis of fluctuation of Freight rates nationally but would also enable tech companies like Trukky to Optimize the Freight space. TRUI Index has been compiled with Data collated over 40 months covering 10000+ trips and has been fine tuned to accommodate variance due to seasonality, freight type, type of vehicle and supply/Demand dynamics

    Trukky Rate Index works real time by analyzing supply, demand and reference price feed from truckers on daily basis, and Trukky is able to do it through connected transportation and bringing demand and supply on a technological platform. Below sample screenshots on how demand and supply is measured.

    Supply Distribution

     

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    Demand Distribution Over a Day

     

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    With upcoming Index on Freight Routes and Consignment type, Trukky’s series of Index’s would act as a tool to not only track industry dynamism with real time data but also predict and forecast freight rates and logistics trends in future.

     

  • 4 Most Common Ways To Solve Road Traffic Problems

    Road transportation being one of the backbones of the industrialization, road traffic is one of the major issues of the modern world where cities are always developing. According to the traffic reports produce by the world’s major countries, India is more populated than other country. Due to the rising population in urban areas, freight vehicles as well as travelers have to spend a large amount of time in traffic. However, there is no exact solution to this problem. Engineers, designers, planners, builders and road transport experts present their opinion, which produces a practical strategy when combined. The following ways may help solve the urban transport problems.

    • Construction of Additional Roads – One of the most common method to resolve vehicular traffic in small and medium towns and districts is construction of new roads and bypasses to divert the traffic. In the mid-twentieth century, the engineers build new highways as an acceptable transportation solution to reduce vehicular congestion on the road.

    However, construction of road network requires a large area of land that may demand for demolition of forests and properties. By the 1970s, the planners and builders came to a conclusion that development of new highways to decrease motor traffic is not the most effective solution to the surface transport issues.

    • Altering Traffic Management System – Road traffic can be temporary or partially reduced by reorganizing the traffic management system. Introducing new traffic flows and directions without making any major structural change to the existing roads may provide temporary relief. Extending of the one-way systems, varying the duration of traffic lights and restrictions of vehicle parking on main roads are the most widely used techniques.

    Traffic management measures have been significantly applied in many areas, where there is excessive noise, pollution and accident risks. Controlling the number of vehicles, speed control devices and parking restrictions can lead to safe and secure atmosphere on the road.

    • Parking Restrictions on the Road – Parking for long duration in the central areas of the town must be restricted by banning all-day parking or charging extravagant parking fees. In some towns, the fines are so low that being caught twice or thrice turns out cheaper than paying parking fees.

    On the other side, separate parking arrangements should be made for short-term visitors and local residents by building reserved parking areas. Overall, parking management is simple to achieve, flexible to apply and easy to be understood by the travelers.

    • Encouraging Public Transport – People may use cycles or walk down to cover short distances, but to cover longer distances, it requires an efficient public road transport system to make sure the city can function better. For that, fares should be as low as possible so everyone can afford it, there must be sufficient availability of transport vehicles, speeding up the buses, connecting major as well as smaller locations and such other measures might be useful.

    Thus, the urban surface transport management is an unending process which should be adopted both in developed and developing countries in order to deal with the increasing problems of the road transport.

  • Road Vs. Rail Transport – Their Contribution To Indian Economy

    The transportation industry in India has been known for the significant contribution in the development of Indian economy, by also supporting various other industries, including agriculture, infrastructure, mining, etc., to grow. Out of several means of transportation such as road, rail, water and air, road and rail have proven to be responsible for shipping a maximum number of cargo throughout India. Here, we will compare both the modes of surface transportation on various aspects and see how they contribute to India’s economy.

    Contribution to GDP

    The freight industry has been growing at the rate of 8.5% per annum. The logistics sector has a major role to play in increasing India’s GDP, by contributing 6.5% in 2012-13, which has grown from 6% in 2001-02. This is due to the increase in road transportation to 4.9% from 3.9% within the same duration. On the contrary, railways show the reduction in their GDP share from 1.2% in 2001-02 to 0.9% in 2012-13.

    Due to the large number of privately-held road transport companies, there is a fierce competition between them, which has led to the reduction in shipping costs. While railways being operated by government, minimal rise and fall in prices have been noticed.

    Freight Movement Traffic

    Today, railways and roadways are considered the most crucial modes of transportation. The rails being the major medium initially, road transportation has dominated the industry over the past few years. While the railway traffic share in 1950-51 was tremendous 80%, roadways managed to take over 65% in 2011-12. Even though Indian Railways transports nearly one billion tons of goods every year, which is a considerably a high number, railway system achieved growth of only 1% in 2015-16 as compared to 4-4.5% in the past recent years.

    The major causes for the shrinkage of this percentage are expensive fares, limited capacities and extreme competition. And, therefore, road transportation succeeded to overtake railways in the last couple decades. Also, railways lag behind when it comes to providing satisfactory customer service, where the construction of new highways have opened possibilities of doorstep service, which further boosted the demand for roadway freight movements.

    Reflection of Freight Traffic

    National Transport Development Policy Committee predicts that the projection of freight movements by road vs. rail transportation would be 50:50 of 2031-32 as compared to present scenario of 65:35 in 2017. These calculations are based the assumptions that the growth rate is 1.2 times the growth rate of GDP.

    There is an assumption of 15% increase in railway transportation within the next 15 years, which has been focused to reduce environmental pollution and encourage green transportation. This will impel logistics industry to take up the rails and waters as more eco-friendly transportation modes.

    Bottom Line

    Although roadways are currently ruling the freight industry, truck owners will have to adopt environmentally-friendly ways in order to sustain in the logistics market. Otherwise, they may be pressured to shut down or invest in other ways if these issues are not addressed. This may reflect a drastic change in the transport sector.

  • 6 Ways To Reduce Pollution With Green Transportation

    Transportation accounts for major impact on the environment. Out of total carbon dioxide emission, 75% of it is contributed by road transport vehicles, and this number is growing exponentially. Also, 95% of the road transportation consumes oil, which leads to around 60% consumption of the total oil in the world. All this puts the national government under strong pressure to come up with transportation solutions to reduce pollution and gasoline demands.

    Reducing Environmental Pollution

    However, road transportation being a prime contributor to polluting environment, steps should be taken to reduce the greenhouse gas emission and achieve a sustainable atmosphere. This corresponds to green transportation, which includes eco-friendly transportation practices that do not lay a negative impact on the environment.

    1. Reducing trips – Reducing the number of trips helps reduce the amount of fuel consumption and emissions. Freight vehicles can combine smaller loads into a single one to reduce trips.
    2. Use public transportation – Public transport vehicles carry a large number of people in a single vehicle. In addition, they are cheap and easily accessible. As public transportation is facilitated by the government, hopefully, appropriate green transportation measures must have been taken.
    3. Walk down or use bicycles – Consider walking or using a bicycle to commute nearby places like school, mall or at work. This emits no greenhouse gas and it is totally safe for the environment. Plus, it is beneficial to the health.
    4. Using Bio – Diesel and electricity to power the logistics vehicleAs logistics and supply chain vehicles also accounts for environmental pollution, using Eco – friendly fuel and electricity can be a good way to preserve the environment.
    5. Prefer multiple occupant vehicles – Rather than four people using individual vehicle while going in a same direction drive, it is more economical and environmentally-friendly to use one vehicle. As apparent from the scenario, the greenhouse gas emission can be reduced to 1/4th.
    6. Modifying aerodynamics of the vehicle – Even the structure and the body of the vehicle impacts the gas consumption. Changing the vehicle’s body for the smooth movement will consume less fuel, and thus, less emission.

    Additional Benefits Of Green Transportation

    Besides preserving the environment and reducing the pollution, green transportation can help obtain many more benefits. A few major benefits are:

    1. Save money – When you opt to go green, you are saving money in a number of ways. For instance, walking and cycling involves no or low maintenance cost and public vehicles are very cheaper.
    2. Live a healthier life – Walking and cycling gives a good exercise to your heart. Moreover, the reduction in pollution will reduce harmful effects on the respiratory system. On the whole, it will lead to a better and healthier lifestyle.
    3. Increase in economic development – Expanding the infrastructure of public transportation and manufacturing green vehicles will create employment opportunities that will contribute to the economic growth of the country.

    Thus, green transportation involves various practices, including effective utilization of resources, adapting transportation structure and make healthier commuting choices. This demands public awareness  and active participation of the residents, manufacturing vehicles that use renewable sources of energy and avoid using vehicles that emits harmful gases.

  • 8 Ways To Increase Your Truck Mileage And Save On Fuel Costs

    While fuel prices are hiking up at a rapid speed, looking for fuel-efficient alternatives have become imperative. Many people trade off their large vehicles with something that utilizes less fuel. But, you run a goods carrier company, you need trucks and trailers, so trading them with other vehicles is not an option here. Therefore, increasing the truck’s fuel mileage is probably the best solution here. To do so, you just need to make some improvements and change old habits. Here are some ways to accomplish a fuel-saving goal.

    • Get your Truck Rregularly Maintained

    Maintaining your transport trucks regularly can improve the mileage. Tune your vehicle by checking its tires, wheel alignment, monitoring the engine and so on. Make sure the tires are inflated to the right pressure and the wheels are aligned so you can get maximum of mileage if the wheels are rolling straight.

    • Check Aerodynamics

    Roof carriages are sometimes handy, but carrying a lump of things on top rack can create a real drag, which leads to more fuel consumption. Avoid keeping things on the roof unless you really have to. Also, try installing a bed cover on your truck, which can help you with better aerodynamics.

    •  Drive Steadily on the Road

    Increasing and decreasing the acceleration continuously can impact your fuel economy. Avoid applying frequent brakes and try to maintain the constant speed as well as get smoothly on the speed breakers. High speed may consume more fuel, so keep a little down.

    • Make Sure You Use the Right Kind of Fuel

    Sometimes using less efficient and cheaper fuel may reduce the life of the engine and other components. The good idea is to use only what is suggested by the diesel truck manufacturer. Use fuel from a good brand that not only powers your vehicle, but also keeps the system clean.

    • Turn Off the Engine When it is Not Required

    If you are stuck in a heavy traffic, turning off the engine is obviously going to save fuel. Also, avoid driving through windows with long queues. Just park the trailer truck aside and go to the window all by yourself.

    • Plan your Route and Combine your Trip

    If you already know at what destinations you are supposed to halt, plan your route in such a way that all the locations can be covered through the shortest route. Avoid driving through congested and high-traffic areas.

    • Do Not Overload

    Every container truck has its loading capacity. Overloading  it will definitely result into wear and tear on the engine, which will indirectly impact the mileage. Remove unwanted weight and lighten up the load to improve your fuel economy.

    • Use Air Conditioner Less Often

    Air conditioning can significantly affect the truck’s mileage. So, use it only when it is too hot, other times pull down the windows. While parking the truck, try to find a space under the shed so your vehicle does not heat up after you are back.

  • How GST Will Impact Logistics And Warehousing Sector

    The logistics industry in India has been greatly evolved over the past few years from being just first-party logistics provider to offering a complete logistics solution, including transportation, pool distribution, warehousing, package management, logistic optimization, and so on, integrated with advanced supply chain channels. Simultaneously, the government has also taken considerable initiatives to ensure a favorable business climate. One such is an implementation of Goods and Service Tax (GST), which unifies multi-layered tax system into one and providing easiness in business activities. GST is predicted to affect a broad range industries of which warehouse and transport will be the one to see the immediate effect.

    Taking logistics and transportation sector into account alone, they form a collective worth of $13 billion. For India to expand its economy, a simpler and more efficient transport system is perhaps required, and GST is exactly going to better this process. GST will eliminate inefficient individual state taxation system, and checking of sales tax during interstate transportation won’t be necessary. Based on a recent study, the waiting time of trucks has been reduced by 50%, with the addition of 8% extra trucks on the road.

    Logistics and warehousing forms a crucial part of an  organization’s strategic business plan. After GST has been implemented, the multiple warehouse strategy to reduce the interstate tax won’t be effective anymore as GST will create a common ground without differentiating interstate and intrastate sales. This could lead to the merging of multiple small warehouses into one centralized warehouse in order to save on the administrative cost of operating several warehouses. It will result in higher efficiency  in supply chains and improved productivity.

    As the time passes by, the logistics companies followed by manufacturers may have to adopt this pattern and re-organize their services, focusing more on metropolises such as Delhi, Mumbai, Ahmedabad, Chennai and Kolkata, where the majority of the central warehouses are located. A manufacturer will not need separate warehouses in each state, shifting to centralization of resources. Instead, they can have a hub in Delhi itself, which serves the entire North region. This will also reflect changes in supply pattern, supplier networks, change in routes for transport companies, leading to optimized and efficient supply chain.

    JLL India, a real estate consultancy firm had said that GST will encourage the emergence of new warehousing hubs besides increase in operations within the existing eight hubs. This is good for ecommerce operators as they will be able to reach more regions throughout the country because GST will reduce transit time taken on the borders and the paperwork involved. This can help companies save immense money, which can be passed on to the customers.

    Today, logistics include warehousing, transportation, distributing and optimization. The GST tax will be functional on transportation and full credit will be given to interstate transactions. It will ultimately lead to centralization across the country, making the logistics chain more focused, leaner and smarter. The GST will lead to significant consolidation in this sector.

  • Waterway Transportation Will Save India’s Rs 40,000 Crore – Sagarmala Project

    Ministry of Shipping has recently presented a report conducted under the Sagarmala Project, stating that India can save up to Rs 40,000 crore annually by 2025 by improving logistics flow at the ports. By improving the ports infrastructure and augmenting the transportation of key goods and commodities, India can seize the opportunity to grow exponentially in the logistics industry by boosting the cargo traffic to up to 2.5 billion MMTPA by 2025.

    This target can be accomplished by encouraging transportation of bulk goods like coal and cement through coastal lines, establishing coastal networks to more number of regions, and connecting ports to national highways and Indian railway network. The study addressed 4 primary estimation to achieve this:

    • Coastal lines should carry nearly 230-280 MMTPA of coal, cement, steel, iron and food grains from current capacities, which can bring savings of around Rs 21,000 to 27,000 crores by 2025.
    • Transporting 80-100 MMTPA of bulk commodities like steel and cement from new coastal capacities can bring saving up to Rs 5,500 to 6,500 crores.
    • Reducing the time to carry containers by 5 days can estimate the saving of Rs 5,000 to 6,000 crores.
    • Increasing the current railway share in the container modal mix from 18% can leverage saving of Rs 2,000 to 3,000 crores.

     

    Sagarmala Project is initiated by our Prime Minister Narendra Modi with a vision to change the way the transportation is carried  out within the country. It is predicted that this project could constitute 2% of the country’s GDP from coastal regions and could be responsible for economic growth by creating a few million jobs, coastal side construction, industrialization, etc.

    Sagarmala contains a series of projects that are intended to take strategic advantage of the country’s inland waterways and coastline to promote economic and industrial growth. Overall the project is anticipated to reduce shipping time and costs, and boosting economic growth and import/export trade. This gigantic project has an outlay of Rs 4 lakh crore, covering four major areas.

    • Develop the infrastructure at ports as well as add up to 6 new ports and increase their capacity.
    • Improve the networks of ports with rails, roadways and waterways.
    • Set up 14 coastal economic zones and a special coastal economic zone at the Jawaharlal Nehru Port Trust in Mumbai with manufacturing units to enable port-led industrial growth.
    • Develop the skills of local fishermen and other communities residing at the seacoast by rendering proper coaching and knowledge.

     

    Thus, using water as a medium to transport goods can help save terrific money on logistics, making the cost of imported goods very much competitive than the times when it was a subject of a real worry for the government. Many organizations have already started using waterways to export their products and are already benefiting from lower logistics costs. As the report says by mentioning the example of maritime countries like China and Japan, “port-led development” can be significantly used to save money.

  • An Insight To India’s 35th Rank In World Bank’s Logistic Performance Index (LPI)

    In the Logistic Performance Index published by the World Bank, India has taken a significant leap from 54th position (in 2014) to 35th position in the 2016 report from the pool of 160 countries, while Germany again topping the list.

    LPI is a benchmarking tool, which is brought out every two years is based on two major sources of information: Several quantitative parameters and a global survey of logistic experts, which provide countries with the statement of their logistic activities regarding what challenges and opportunities they could encounter in coming years and what they could do to enhance their performance and ranking.

    The parameters included are: their efficiency in border management and customs clearance (India: 38),  the quality of trade and transport infrastructure (India: 36), the handling of international shipments (India: 39), the competency of logistics activities (India: 32), to track and trace consignments (India: 33) and the frequency of how many consignments reach the consignees within the expected delivery time (India: 42). In all these factors, India has shown dramatic transformation since 2014, leaving countries like Portugal, New Zealand, Saudi Arabia, Iceland, Thailand and Indonesia behind.

    Speaking of second source, a survey of nearly 1,000 supply chain professionals is conducted globally who provide their feedback on the logistics efficiency of the country they operate and the countries with which they perform logistics operations.

    Arvind Mahajan, partner and national head at KPMG India, stated that betterments in infrastructure and launching programs like Make in India have drastically improved transport operations in India. He further added, emerging of talented professionals and technological advancements have enabled services like tracking and tracing, which has helped India fill the gaps with leaders. Thus, better logistic performance will not just encourage government initiatives like “Make in India” by enabling India to be a part of global supply chain, but also aids to enhance trade and transportation sector.

    While, LPI(Logistics Performance Index) does not take into account of how difficult or easy it is to transport goods to remote or undeveloped area. For that, World Bank brings separate measure – a domestic LPI, which assess the logistic environments within the country. The Domestic LPI determines a country’s logistic performance based on four parameters: infrastructure, services, border procedure and time and supply chain reliability.

    However, not all measures can be compared across countries. Still, there are some yardsticks which manifest that India has still some way to go. For example, only 69% of consignments in India meets the quality standard, which is quite less compared to 77% of Kenya and 72% of China. On the other side, India takes two to three days to clear shipments, with or without inspection, which is comparable to China, but longer than days taken by top-ranked Germany.  Likewise, India requires on average 5 forms for import and export, compared to 2 in Germany and 4.5 in China.

    Thus, worldwide trade depends on how competently countries import and export goods, which analyzes how countries should foster and survive in the global economy. The countries having efficient logistics can easily associate with domestic as well as international firms, while countries having inefficient logistics may face high costs and fail to deliver on time.

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