Agricultural sentiments have remained steady in December. Farmers are feeling optimistic about the current season for a number of reasons, including a sufficient monsoon, on-time payments, and favorable crop prices. November witnessed a considerable movement of finished crops from farmlands to Mandis for procurement, whereas December, in comparison to November, witnessed restricted movement which resulted in a marginal decrease in freight rates for agricultural products.

The automotive sector faced moderated activity in December due to demand-side limitations in passenger vehicles (PV) and two-wheelers (2W). Although y-o-y growth remained either positive or steady for many manufacturers, month-over-month declines limited vehicle transportation from production facilities to dealerships. Elevated dealer inventories, particularly in the PV segment, further suppressed auto freight rates.

Freight transportation for steel and cement was restricted due to a slowdown in construction activities. Delays in project awarding, influenced by some state elections, further dampened construction-related demand.

In the FMCG/FMCD sector, cooler temperatures have led to a slowdown in demand for appliances like ACs, refrigerators and cold beverages too; thus affecting freight movement. However, overall demand for these categories continues to show stability.

December’s marriage season played a significant role in driving freight movement, particularly for parcels/loose goods, market load, and FMCG, with notable activity in northern states where weddings are celebrated extensively on large scales.

For commodities like Agri products, Containers, Parcel/loose goods, Cement, Petroleum Tankers and Textiles; utilisation levels have remained stable over last month. Auto-carriers, FMCG/FMCD, Mining products and Steel witnessed dip in utilisation levels. Whereas Market load witnessed slight uptick in utilisation levels.