A large part of the increase was because of freight rates of fast-moving consumer goods/durables (FMCG/FMCD) rising slightly with the onset of the festive season across the country.
Freight rates in India have increased for products including textiles and parcel/loose goods on-month in September 2022, while freight availability for textiles was flat on-month. Overall freight rates inched up on-month in September, according to Crisil. The industry’s FCF share vis-à-vis operating cost was steady on-month at about 20 per cent.
In September 2022, freight rates of about 81 per cent of the combinations increased/decreased within 1 per cent of last month’s freight rates, said Crisil.
Slight increase in freight availability and freight rates improved free cash flow (FCF; pre-equated monthly instalment, or EMI) of transporters on-month in September. However, the industry’s FCF share vis-à-vis operating cost was steady on-month at approximately 20 per cent.
Fibre2Fashion News Desk (NB)