. INDIA LOGISTICS: Logistics activity steady in Sep’22; Freight rates increase marginally
Daily average e-way bill generations up 11% MoM in Sep’22; daily average toll collections higher 3% MoM in Sep’22
Daily average e-way bill generations increased 11% MoM and clocked ~2.8m/day in Sep’22. Stocking up of inventory ahead of the festive season and decline in commodity prices led to 11% sequential growth in daily e-way bill generation. Daily e-way bill generations rose ~24% YoY, with intra-state bill generations increasing 29% YoY and inter-state generations growing 16% YoY in Sep’22. The daily average FASTag toll collection increased ~3% MoM to INR1.41b/day in Sep’22.
Rail EXIM container volumes flat YoY in Sep’22; gains market share in container traffic
While overall container volumes handled at ports decreased ~3% YoY, EXIM container volumes handled by Indian Railways increased 1% YoY in Sep’22. The Railways’ market share in EXIM containers increased to 35% in Sep’22 (v/s 33% in Sep’21). Domestic container volumes handled by Railways rose 6% YoY in Sep’22.
Traffic handled at major ports up 15% YoY in Sep’22
Coal/Fertilizer/Iron Ore/POL/Other cargo posted growth of 47%/26%/16%/11%/12% YoY, respectively, in Sep’22, whereas the container segment reported a decline of 3% YoY in the month. Two major ports, namely Ennore/ Cochin, reported 7%/19% YoY de-growth in traffic in Sep’22, respectively. Kolkata/ Paradip/Vizag reported significant growth of 24%/29%/30% YoY, respectively. Container cargo decreased ~2% YoY in Sep’22, on a TEU basis.
Freight rates increase MoM in Sep’22 with the onset of festive season
With the onset of the festive season, freight rates witnessed a sharp increase MoM in Sep’22 despite no major change in diesel prices. The freight rates are expected to remain firm with demand momentum expected to continue. This is expected to improve the near-term profitability for most players in the industry. VRL Logistics continues to remain our top pick in the Indian Logistics space.
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