Small Transport Operators Face Financial Crisis As Rising Costs And Stagnant Freight Rates Threaten Supply Chain: AIMTC

Mumbai: India's small road transport operators are staring at a financial crisis as rising operating costs and increasing regulatory compliance make their business unsustainable, the All India Motor Transport Congress (AIMTC) warned on Friday. The industry body said thousands of small transporters and self-driving truck owners are struggling to survive because freight rates have remained largely unchanged despite a sharp rise in fuel prices, toll charges, insurance, maintenance costs and finance expenses. AIMTC cautioned that if the situation continues, it could disrupt the country's supply chain, which depends heavily on road transport.

AIMTC Advisor Seeks Fair Environment, Not Subsidies, for Sustainable Operations

AIMTC Advisor and former President Bal Malkit Singh said small transporters are not seeking subsidies but a fair and sustainable business environment. "If immediate corrective measures are not taken, thousands of small transport operators and self-driving truck owners will be forced to shut down, severely impacting India's supply chain and economy," he said. He added that diesel, tolls, tyres, insurance, AdBlue, finance costs and compliance expenses have risen sharply, while freight rates have remained stagnant, making operations financially unviable.

The transport body also raised concerns over the growing compliance burden, alleged misuse of the e-challan system and the mandatory installation of Vehicle Location Tracking Devices (VLTDs) in goods vehicles. It claimed technical glitches in linking VLTDs with the VAHAN portal have led to vehicle downtime and financial losses. AIMTC has urged the Centre and state governments to rationalise toll charges, simplify compliance, withdraw the mandatory VLTD requirement for goods vehicles, resolve VAHAN integration issues and improve highway facilities such as safe parking, toilets and rest areas. It also demanded a scientific freight rate mechanism linked to actual operating costs to ensure the long-term sustainability of the sector.

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