(Bloomberg) —
The world’s biggest lockdown has brought transportation of goods in India close to a halt, even though the federal government has exempted the sector from restrictions to halt the spread of coronavirus.
Daily movement of trucks has collapsed to less than 10% of normal levels, according to All India Motor Transport Congress, an umbrella body of goods-vehicle operators representing about 10 million truckers. Road transport accounts for about 60% of freight traffic in India and 87% of its passenger traffic, according to the Ministry of Road Transport and Highways.
Trucking has emerged as a major chokepoint in global supply chains from food to medical supplies as governments around the world take ever more stringent steps to contain the pandemic, restricting the movement of vehicles as well as people to drive them. The stoppages in India, where Prime Minister Narendra Modi imposed a three-week lockdown on the nation’s 1.3 billion people from March 25, are a harbinger of the damage the measures are wreaking on the economy amid forecasts the country could see its first contraction in at least two decades.
“Though the government has allowed movement of both essential and non-essential goods, the situation is very different at the ground level,” said Naveen Kumar Gupta, secretary general of AIMTC, the largest grouping of transporters in India. Almost daily clarifications by the government take time to trickle down to officials enforcing the rules, making operations difficult, according to the organization’s president, Kultaran Singh Atwal.
The decline in road transport is another major setback for fuel demand in the world’s third biggest oil market, which has already been hit by the collapse in air travel. Fuel sales in March by India’s three biggest state-run retailers shrank by as much as 33%.
One of the major problems facing truckers is loading and unloading because of a shortage of labor, according to AIMTC. And with the lockdown shutting highway food establishments and workshops, truckers can’t get the services they need even if they are on the road.
How will the coronavirus pandemic shift power around the world? Join us on Tuesday at 10 am ET for a live virtual conversation exploring how a post-virus world might look. Register here for Bloomberg New Economy
Charting the Trade Turmoil
The world could be on the brink a food scare as the coronavirus upends supply chains and sends prices for key staples higher. Prices of rice and wheat — crops that account for a third of the world’s calories — are rapidly climbing.
Today’s Must Reads
About face | President Donald Trump eased restrictions on exports of masks and other protective equipment needed to fight the Covid-19 pandemic after a backlash from allies around the world. Stranded sailors | Port restrictions and canceled flights are straining the ability to replace seafarers on board ships, further weakening global supply chains already snarled by the coronavirus pandemic. Supply concession | India partially lifted a ban on the exports of a malaria drug after Trump sought supplies for the U.S., according to government officials with knowledge of the matter. Plane challenge | The most dramatic contraction in civil aviation history poses a challenge for Airbus in how to balance its response. Pose a strike | The global health crisis is shining a spotlight on how Amazon and many of the world’s biggest companies treat essential workers. Swiss nonplussed | Switzerland, whose penchant for preparing for emergencies has won it praise, is facing a possible shortage of alcohol used to make hand sanitizer.
Bloomberg Analysis
Functions for the market | Food supply-chain risks persist even as panic buying ebbs. Rent effects | The coronavirus will reduce apartment REIT revenue and funds from operations in 2020, potentially by more than the 4% drop at the depths of the 2008-09 crisis. Swift response | On Feb. 27, ECB President Christine Lagarde said there was no obvious need for a monetary response to the pandemic. Four weeks later, she unleashed massive stimulus. Use the AHOY function to track global commodities trade flows. See BNEF for BloombergNEF’s analysis of clean energy, advanced transport, digital industry, innovative materials, and commodities. Click VRUS on the terminal for news and data on the coronavirus and here for maps and charts.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="For more articles like this, please visit us at bloomberg.com” data-reactid=”26″>For more articles like this, please visit us at bloomberg.com
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Subscribe now to stay ahead with the most trusted business news source.” data-reactid=”27″>Subscribe now to stay ahead with the most trusted business news source.
©2020 Bloomberg L.P.
Add Comment