Localised restrictions and low demand during the second COVID wave disturbed the transport movement, a key indicator of economic activity.

As restrictions ease, goods carriers and logistics companies are now seeing better fleet deployment and expect business to return to pre-second wave levels in July. However, rising fuel prices are a cause for concern.

After dropping to almost 50 percent levels in the months of April and May commercial fleet utilisation is back to almost 70-80 percent in the second half of June and sources within the transport industry indicate that business volumes will reach pre-second wave levels in July.

Freight and logistic companies saw their best volumes in March this year and a recovery in business indicates that volumes are likely to return to Q3-Q4 levels from FY21.

Watch the accompanying video of CNBC-TV18’s Alisha Sachdev for more details.

(Edited by : Anshul)

First Published:Jun 29, 2021 4:12 PM IST