SlideShare a Scribd company logo
1 of 19
Truck Carriers
Team:   • Binoy
        • Fijo
        • Priyanga
        • Samson
        • Shabna
        • Swetha
        • Vineetha
Three distinct market segments
• The low-cost segment
     - technically simple and cheap trucks.

• The modern domestic segment
     - further developed
     - extremely favorably-priced trucks.

• The premium segment
       - Technically high-quality and high-value trucks
  ffffffffffffffffff     from
      European, North American and Japanese OEMs.
Impact of the crisis
Rising demand ???
• Construction sector experiencing
  h   Rapid growth

• Substantial improvement in
       Road network
Performance of truck carriers
 Roads are the main form of transportation and they
  carry 65% of India’s freight.
 Trucking is the number one form of freight
  transportation in India.
 Trucks have the widest reach in freight
  transportation and can deliver goods to even the most
  rural and hilly areas of India
 Challenges in the Indian scenario.
  Poor quality and increasing congestion.
Comparative Cost Analysis
        Fixed    Variable   Traffic
         costs    costs     composition

Rail    high        low      Bulk food, mining,
                             heavy mfg

Motor   low        medium    Consumer goods,
                             medium/light mfg

Water   medium      low      Bulk food, mining,
                             chemicals

Air      High       high     High-value goods,
                             rush shipments

Pipe     High       low      Petroleum, chemicals,
                             mineral slurry
FACTORS AFFECTING TRUCK CARRIERS
• Economies of scale in truck size, which favour
  the use of larger trucks.
• Back-haul possibilities, which depend strongly
  on the demand pattern.
• Empty running and idle time due to seasonal
  variations in demand,
• Restrictions on working hours.
  Example due to regulations or safety reasons.
• Road conditions such as mountainous
  terrain, deteriorated pavement and traffic
  congestion.
Performance
  Analysis
Parameters
1. Speed
2. Availability
3. Dependability
4. Capability
5. Frequency
Performance
20




10




0

     Road   Rail   Water   Air
ADVANTAGES
1. Item Protection

2. Cost Savings

3. Easier to Track

4. Cost effective

5. Reliable and simple to setup

6. High flexibility in terms of transport jobs &
   changed plans.

7. Fewer idles and waiting periods.
8. Door-to-door delivery

9. Quicker Delivery Time

10. Relatively low transport times for short and medium distances.

11. Fast and convenient

12. Ability to use different routes and delivery schemes

13. High safety of the cargo

14. Great opportunity to select the most suitable carrier
Disadvantages:

Limited transport volume.
Traffic jams.
Legal restrictions.
Weather effects.
Restrictions on transport of
 hazardous goods.
Lack of environmental
 cleanliness.
 Trucks are not fuel efficient.

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Performance, Advantages and Disadvantages of Transportation via Trucks

  • 2. Team: • Binoy • Fijo • Priyanga • Samson • Shabna • Swetha • Vineetha
  • 3. Three distinct market segments • The low-cost segment - technically simple and cheap trucks. • The modern domestic segment - further developed - extremely favorably-priced trucks. • The premium segment - Technically high-quality and high-value trucks ffffffffffffffffff from European, North American and Japanese OEMs.
  • 4.
  • 5. Impact of the crisis
  • 6. Rising demand ??? • Construction sector experiencing h Rapid growth • Substantial improvement in Road network
  • 7.
  • 8. Performance of truck carriers  Roads are the main form of transportation and they carry 65% of India’s freight.  Trucking is the number one form of freight transportation in India.  Trucks have the widest reach in freight transportation and can deliver goods to even the most rural and hilly areas of India  Challenges in the Indian scenario. Poor quality and increasing congestion.
  • 9. Comparative Cost Analysis Fixed Variable Traffic costs costs composition Rail high low Bulk food, mining, heavy mfg Motor low medium Consumer goods, medium/light mfg Water medium low Bulk food, mining, chemicals Air High high High-value goods, rush shipments Pipe High low Petroleum, chemicals, mineral slurry
  • 10. FACTORS AFFECTING TRUCK CARRIERS • Economies of scale in truck size, which favour the use of larger trucks. • Back-haul possibilities, which depend strongly on the demand pattern. • Empty running and idle time due to seasonal variations in demand, • Restrictions on working hours. Example due to regulations or safety reasons. • Road conditions such as mountainous terrain, deteriorated pavement and traffic congestion.
  • 12.
  • 13. Parameters 1. Speed 2. Availability 3. Dependability 4. Capability 5. Frequency
  • 14.
  • 15. Performance 20 10 0 Road Rail Water Air
  • 16. ADVANTAGES 1. Item Protection 2. Cost Savings 3. Easier to Track 4. Cost effective 5. Reliable and simple to setup 6. High flexibility in terms of transport jobs & changed plans. 7. Fewer idles and waiting periods.
  • 17. 8. Door-to-door delivery 9. Quicker Delivery Time 10. Relatively low transport times for short and medium distances. 11. Fast and convenient 12. Ability to use different routes and delivery schemes 13. High safety of the cargo 14. Great opportunity to select the most suitable carrier
  • 18. Disadvantages: Limited transport volume. Traffic jams. Legal restrictions. Weather effects.
  • 19. Restrictions on transport of hazardous goods. Lack of environmental cleanliness.  Trucks are not fuel efficient.

Editor's Notes

  1. The Indian truck market grew at the decidedly impressive rate of 24% per annum between 2002 and 2008, reaching 4,20,000 vehicles by the end of 2008In 2009, the truck market has also been hit by thefinancial crisis.