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.
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.
Demand Distribution Over a Day
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.