Freight rate goes up for plywood trade

person access_time   3 Min Read 05 June 2017

The curb on overloaded truck movement has impacted the wood panel trade since the beginning of March. The tightness on over loading of the materials beyond the truck capacity has impacted the delivery cost per square by up to 6-8 percent. The over loading ban had led to seizure and penalty on overloaded trucks last month that even created a shortage of trucks at transporters to many routes. The strictness in Uttar Pradesh has led to disturbance in supplies to connecting states like MP, Bihar, Andhra Pradesh, UP, Uttarkhand, Jharkhand, Chhattisgarh, Odissa and even in parts of Gujarat. A large quantity of timber and core veneer is supplied to various units in Rajasthan, Gujarat and Haryana hence the production in many of the units witnessed a temporary hurdle. Now the situation is reported to have improved because transporters have aligned their loading limits according to norms and have increased the tariff.

Now the freight carriers deny a 9 metric ton capacity to load beyond 8.5 metric ton to remain safe. The step has not only brought a calculative approach among distributors and dealers but has also attributed a sense of system among plywood and panel material producers.

The cost of battens, timber, veneer or any transportable goods have rose if freight cost according to prescribed limit is calculated. That is why plywood units are observing a rise in their transport expenses on material arrival too. It is reported that the whole sellers have reworked on their cost sheet due to the load impact and have increased their material prices by 25 paisa to 50 paisa. The experienced and calculative door suppliers to have increased the cost by Rs 2 to Rs 5 due to freight rise.

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