The logistics start-up Rivigo has launched National Freight Index(NFI) that will provide live freight rates for different lanes and vehicles across the country.
Freight transportis the physical process of transporting commodities and merchandise goods and cargo.
The NFI will offers an aggregated picture of both live rates and historical trends of spot price movements in the road freight industry.The index is represented in two forms (a)actual freight rates condensed to rupees per tonne-km and (b)relative movement with respect to a base month.
This index will be a step towards easing the crisis in the freight sector and streamlining the sector by giving live spot rates on over 7 million lane and vehicle type combinations in the country.
Further,the rates on the exchange and the index are computed using millions of data points from historical transactions,current market dynamics,micro market insights and other factors with the purpose of giving fair and precise representation of the state of the spot market.
The Indian road freight market for 2018 is estimated to be in the range of USD 150-160 billion.About USD 130-140 billion of this is the Full Truck Load (FTL) market.Within this,Rivigo estimates that the spot freight market is about USD 110-130 billion and is growing at 9%-10% per year.
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