Air-conditioned cabins for trucks will soon be made mandatory: Gadkari

NEW DELHI: Air-conditioned cabins for trucks will soon be made mandatory, Union Minister Shri Nitin Gadkarisaid.

As drivers play a key role in the transport sector, which is one of the most important areas for India as the fastest growing large economy in the world, there is a need to address issues regarding their working conditions and state of mind, the Minister of Road Transport and Highways said here.

He was speaking at an event to unveil a book — ‘Desh Chaalak’: A bookhonouringIndianDrivers.

Lamentingthattruckdrivershave been forced to work in extreme heat conditions, the minister said that he has been pushing for air-conditioned cabins for truck drivers for a long time.

“Some peopleobjected to itsaying it will increase costs…but before coming here I have signed on the file that henceforth, driver cabins in trucks will be air-conditioned,” Gadkarisaid.

He stressed the need to improve the working conditions of drivers and also take steps to overcome the shortageofdriversbysettingupmore drivingschools.

Due to the shortage, drivers in India are working 14-16 hours at a stretch while in other countries their working hours are fixed, Gadkari added.

With India emerging as the fastest-growingmajoreconomyinthe world, he said logistics is very important and there is a need to reduce the cost of logistics in order to increaseIndia’sexports.

Transpacific and Asia-Europe rates at Dec 2019 level : Drewry

• Asia-Mediterranean volumes remained strong, gaining more than 20% y-o-y, likely accounng for firmerrateperformanceonthislanethanonothermajortrades.PhotofromCMACGM

• Asia-US and Asia-Europe spot rates are back to December 2019 pre-pandemic level aer last week’s surge,butDrewrysaysratesonothersegmentsandcontractmarketsslldeclining

• Transpacificspotrateshadslid80-84%intheyeartoMay31,butDrewrydismissedthisasacorrecon fromsuper-inflaonarytrendsintheCOVID-19period,notacollapse

• On the transatlanc route, which has different dynamics and vessel sizes from the larger East-West routesconnecngAsia,spotratesaresll62%higherthanpre-pandemiclevels

LONDON: Transpacific and Asia-Europerates on container shipping spot markets have returned to December 2019 pre-pandemic levels following last week’s surge, but Drewry says other segments and contractmarketswillstilldecline.

Rate trackers estimate transpacificspotrateshadslid80-84% intheyeartoMay31,butDrewrysaid this was a correction from superinflationary trends in the COVID-19 period, not a collapse. The factors behind the recent crazy rates –capacity shortages, strong demand andportcongestion–haveallgone,so the rates have returned to previous levels.

To put the 80% year-on-year reduction in perspective, the weekly Drewry World Container Index also provides a comparison, the supply chainadvisorsaid.

“In fact, when compared with December 2019, the latest transpacificspotratesarebroadlythe same!Youcouldsaythatspotrateson thisroutehavefullynormalized,”said Drewry, adding some transpacific spotratesarelowerthanthese.

Drewry said its rate assumptions are using average “all-in rates” including both origin and destination terminal handling charges and fuel surcharges. It cautions the transpacific spot rates comparison does not take into account the inflation many economies have experienced between 2019. “And now, if you take into account inflation, then spot rates are actually lower than in 2019,”Drewrysaid.

The transatlantic route is different, as it does not follow the trends of the transpacific and AsiaEurope rates, Drewry said. On this route, which has different dynamics and vessel sizes from the larger EastWest routes connecting Asia, spot rates are still 62% higher than prepandemiclevels.

Drewry noted that rates they had dropped 47% in the year to May 2023, but it forecasts that transatlantic westboundrateshavefurthertofall.

“So, if you ship mainly using the spot market, you should consider these findings that transpacific spot rates have now “fully normalized”, and transatlantic rates have only partlynormalized.

Judah Levine, Head of research at Freightos, attributed last week’s rate surge to June general rate increases (GRIs), reduced capacity, some slowdown in West Coast traffic duetodockworkers’actionsbeforelast Friday’s tentative contract agreement between their union and employers, and surcharges for ships passing throughdrought-hitPanamaCanal.

But soft demand for goods continuestoweighonfreightmarkets and keep downward pressure on rates,Levinesaid.

Transpacific ocean rates climbed sharply last week on June GRIs, with Asia-USWestCoastpricesincreasing

$250/FEU or 19%, and rates to the EastCoastclimbing12%.

In Europe, there was a slight rebound in ocean import volumes in April that was attributed by some to a modest start to restocking. AsiaEurope ocean rates remained subdued last week at 11% below 2019 levels,thoughdailyratesforthisweek may show signs of some 10% rebound tostartthemonth,Levinesaid.

Asia-Mediterranean volumes remained strong, up 20% y-o-y, likely accounting for firmer rates on this lane than on other major trades. Prices of $2,364/FEU last week remain 28% higher than in 2019, makingthelane’sbenchmarktheonly elevated relative to pre-pandemic levels.

Drewry’s composite World Container Index had shed 5% to $1,592.25 this week and dropped 79% from the same week last year. The index reached $10,377/FEU September 2021 but is 41% lower than the 10-year average of $2,688, indicating a return to more normal prices, but remains 12% higher than average 2019 (pre-pandemic) rates of $1,420.

Shanghai-Los Angeles and Shanghai-NewYorkratesdropped8% each to $1,746 and $2,733/FEU. Rates on Shanghai-Rotterdam fell 7% to $1,349/FEU. Similarly, RotterdamNewYorkratesslid5%to$3,195/FEU. Rates on Los Angeles-Shanghai and Shanghai-Genoa hovered around the previousweek’slevel.