CRISFrex indicates that overall freight rates inched up on-month in September. 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.

Also, freight availability ticked up for agri-products, parcel/loose goods and cement. However, freight availability for commodities such as auto carriers, market load, textiles, petroleum tankers, steel, mining products (largely coal) and container applications was flat on-month.

In September 2022, freight rates of ~81% of the combinations increased/decreased within 1% of last month’s freight rates

Free cash flows edge up

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 ~20%.