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Freight margins recover in December

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Even as mining, steel, and cement freight rates saw a healthy one-month increase in December, and fuel prices stabilized

Freight margins have shown some recovery in December as mining, steel, and cement freight rates saw a healthy one-month increase in December, and fuel prices stabilized.

For December, CRISIL’s freight index is back to festive levels seen in October, after the extended south-west monsoons negatively affected rates in November. With fuel prices stabilizing, the uptick in business in mining, steel, and cement is translating to an increase in margins.

During December 2021, the freight industry saw a margin (free cash flow) of 20 percent, a five-point bump from November at 15 percent. Margins in December were the highest since February 2021.

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