Understanding Indian Logistics: A Guide to Trucking Rates and Fares


Trucking rates or fares in Indian logistics refer to the cost of hiring a truck or a fleet of trucks to transport goods or cargo from one location to another within the country. The rate is typically calculated based on factors such as the distance of travel, the size and type of truck, the type of cargo being transported, and any additional services required, such as loading and unloading. Truck rates can vary significantly depending on the logistics company and the specific route and destination. Here, we will cover the factors determining truck rates, impacts, and ways to reduce those.

Key Takeaways

  • Trucking rates in Indian logistics refer to the cost of hiring a truck or a fleet of trucks to transport goods or cargo from one location to another

  • Quite a few factors stay responsible for determining the rates of transport in Indian logistics

  • Cost, competition, and time of delivery are the three impacts of lorry transport rates

  • GST plays a big part here and there are different ways to reduce the rates

Factors that determine transport rates in the field of logistics in India

There are several factors that affect trucking rates in India. Some of the most significant factors are highlighted below.

Fuel Costs

Fuel costs are one of the most significant factors that affect trucking fares in India. The cost of fuel has a direct impact on the operating costs of trucking companies, and this, in turn, affects the rates they charge for their services. The price of fuel in India is subject to fluctuations, and this can have a significant impact on the rates of trucking.

Distance of the Journey

The distance of the journey is another important factor that affects the rates of goods trucks in India. Longer journeys typically require more fuel and maintenance, and this increases the operating costs for trucking companies. As a result, lorry transport rates for longer journeys are generally higher than for shorter journeys.

Type of Goods

The type of goods being transported is also a factor that affects transport rates in India. Hazardous materials and oversized cargo require special handling and equipment, and this increases the operating costs for trucking companies. Therefore, the rates for these types of goods are generally higher than for regular cargo.

Competition in the Market

Competition in the market is another important factor that affects truck shipping rates in India. The level of competition in the market determines the pricing strategy of trucking companies. In a highly competitive market, trucking companies may offer lower rates to attract customers, while in a less competitive market, trucking companies may charge higher rates.

Impact of Trucking Rates on Logistics Industry

Cost: High rates of trucking can increase the overall cost of logistics for businesses, which can affect their profitability.

Delivery Time: High rates of truck loads can also impact delivery times, as companies may opt for cheaper, slower modes of transportation to save on costs.

Competition: High trucking rates can make it difficult for small and medium-sized businesses to compete with larger companies that have more resources to absorb the costs.

GST rate on logistics services and influence on truck shipping rates

The introduction of the Goods and Services Tax (GST) in India has had a significant impact on trucking rates. GST is a single tax that replaces multiple taxes, such as value-added tax (VAT) and excise duty. This has resulted in a reduction in the overall cost of goods and services, including trucking services.

However, the impact of GST on truck transportation rates varies depending on the state in which the goods are being transported. In states with a higher GST rate, the rates of trucking may be higher, while in states with a lower GST rate, truck loads rates may be lower.

The truck transport rate per km and kg in Indian logistics varies depending on several factors such as the type of truck, distance, and cargo weight. On average, the rate ranges from INR 10 to INR 15 per km for a standard truck. Transport rate per kg varies between INR 12 to INR 20 for cargo weight. However, this rate can increase or decrease depending on the location, type of cargo, and demand. 

Ways to Reduce truck transportation rates

Use of Technology: Technology such as GPS tracking and route optimization software can help reduce fuel consumption and improve efficiency, resulting in lower lorry transport rates.

Collaboration: Collaborating with other businesses to share trucking resources can also help reduce rates.

Government Incentives: Government incentives and subsidies can also help reduce truck transportation rates.

The way ahead

Trucking rates or transport rates are a crucial component of the Indian logistics industry, and they are determined by a variety of factors such as distance, weight and volume, type of cargo, and seasonal demand. Get to know more about this by getting in touch with us. Connect here.


Ans: To find the best trucking fares in India, it is important to shop around and compare rates from different trucking companies. You may want to consider working with a logistics company like Vahak too.

Ans. Yes, there are several regulations and laws that govern goods transport fares in India, including the Motor Vehicles Act and the Central Motor Vehicles Rules.

Ans: Using a broker for trucking in Indian logistics can offer many benefits such as access to a larger pool of trucking companies, the ability to compare prices and services, and the ability to negotiate better rates/fares.

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