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India’s railway freight activity optimism index (RFAOI) for the second quarter (Q2) this year stands at 63, three points higher than the previous quarter despite the uncertainty posed by the war in Ukraine and the risks weighing upon the pace of recovery of businesses, according to a survey by Dun & Bradstreet, a global provider of business data and analytics.
Businesses in the western region are the most optimistic in Q2 2022 (optimism index at 65). Both large and medium-scale businesses are more optimistic about export freight demand compared with small and micro players, the survey found.
India’s railway freight activity optimism index (RFAOI) for the second quarter this year stands at 63, three points higher than the previous quarter despite the uncertainty posed by the war in Ukraine and the risks weighing upon the pace of recovery of businesses, according to a survey by Dun & Bradstreet, a global provider of business data and analytics.
Soaring logistic costs and overall inflationary pressure, given rising fuel prices and depreciating rupee, might have affected optimism level for import freight demand, which continues to be the lowest in Q2 2022 amongst all the parameters surveyed.
Freight cost is likely to remain elevated or go up as 40 per cent of businesses expect cost of transportation through railways to increase in Q2 2022, the survey found.
Optimism for factors of supply chain increased at the slowest pace (one percentage point gain) in Q2 2022 compared to the other three segments.
Optimism level for the availability of wagons fell by 4 points in Q2 2022 from the previous quarter, whereas optimism for operational efficiency in Q2 2022 improved by three points to 64 from Q1.
Dun & Bradstreet recently released the 2nd edition of its RFAOI in collaboration with the Jupiter Group, which manufactures railway wagons, passenger coaches, wagon components and castings. The survey was conducted to measure the optimism levels of rail freight users to assess whether rail freight activity in the country is expected to improve, remain steady or decline.
The index is composed of 14 sub-parameters across four sub-indices – optimism around factors of supply, operational efficiency, investment and demand.
Businesses were the most optimistic about loading and unloading of goods with (optimism index at 69) and least optimistic about transit time (optimism index at 57). Optimism level for investment activity is the highest at 66 in Q2 2022.
Optimism for freight demand improved quarter on quarter yet remains lowest among all the four sub-indices in Q2 2022 at 59.
Fibre2Fashion News Desk (DS)
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