In May, transporters passed on the drop in diesel prices by decreasing freight rates on several routes.

However, fleet utilisation was flat on-month. While utilisation for market load was higher, this was offset by slightly lower utilisation for parcel/loose goods, mining (largely coal and iron ore), and agri-products.

The remaining commodities, including auto-carriers, container applications, fast moving consumer goods (FMCG)/ fast moving consumer durables (FMCD), steel, textile, and petroleum tankers, saw flattish trajectory in utilisation.

The complete effect of this duty cut would be visible in the index from next month. This is because the central government set an extrinsic decline in excise duty at the end of the month, whereas CRISFrex represents freight rates and fuel prices for the entire month.