Firms are optimistic about EXIM freight compared to domestic freight transported through railways- Dun & Bradstreet IRFA Report

MUMBAI, India, Nov. 26, 2024 /PRNewswire/ -- Dun & Bradstreet, a global leader in business decisioning data and analytics, and Jupiter Wagons, released the Indian Railway Freight Activity (IRFA) Index. This index is an initiative launched amid the government's efforts to enhance railway freight modal share. The report provides a comprehensive assessment of the dynamics of Indian Railway freight activity through the lens of the railway freight users.

Released at quarterly frequency, the IRFA index comprises of two sub-indices - the Freight Activity Experience sub-index for the current quarter and the Freight Activity Optimism sub-index for the upcoming quarter, derived from a survey of railway freight users transporting freight across the five major railway zones i.e. Eastern, Western, Northern, Southern and Central. The index value ranges from 0-100, where values greater than 50 indicate increase in the railway freight activity compared to the same period last year and values less than 50 indicate a decline.

Key Findings:

• The IRFA index, rose by 3.3% in Q2, as firms grew more optimistic about freight activity in Q3.
• Firms expressed greater optimism for freight activity in Q3, particularly for export-import trade (EXIM), with overall confidence increasing by 7.7% as compared to Q2 2024.
• Medium and small firms showed increased confidence in EXIM freight for Q3, while large firms' optimism sharply declined by 53% from Q2 to Q3.
• The western region is most optimistic about domestic freight and EXIM freight. The eastern region remains the least optimistic for both in Q3.
• Optimism for the demand for containers is highest in Q3 2024, especially among large firms. Demand expectations for wagons also improved the most from Q2, indicating a rise in resource requirements.
• Despite a positive outlook for Q3, there is widespread expectation of rising freight costs due to ongoing challenges like resource availability and transit delays.

Arun Singh, Global Chief Economist, Dun & Bradstreet, said, "Our survey highlights that escalating geopolitical risks, including the Israel-Hamas conflict, high container freight rates, and congestion in key eastern routes, have dampened optimism among large firms for Q3 EXIM freight activity, with confidence declining in Q3 from Q2. Medium and small firms, being less exposed to global supply chain disruptions, showed increased confidence. While firms broadly anticipate rising freight costs due to challenges such as geopolitical conflicts, resource availability, and transit delays, the overall outlook for Q3 freight activity remains positive, especially in export-import movements, though optimism varies by firm size."

Mr. Sudip Haldar, Chief Technical Officer, Jupiter Wagons, commented, "The survey revealed higher optimism for EXIM freight in Q3 compared to domestic trade across regions, with the western region leading in optimism for both domestic and EXIM activity, while the eastern region was the least optimistic in both areas. Firms indicated increase in demand for wagons, containers, and rakes in Q3 from Q2 2024, despite facing challenges around the availability of wagons, rakes, routes and labor in Q2. Regional variations also emerged in rail transport utilisation: in the eastern region, less than half of firms use rail for bulk transport, while only 29% in the central region prioritise rail for delivery speed, and around 50% of firms using the northern and southern railways rely on it for reliability."

About Jupiter Wagons:

Jupiter Wagons Limited is a leading Indian manufacturer of railway freight wagons, committed to delivering productive and reliable transportation solutions for a nation on the move. We boast a rich heritage of over four decades, pioneering advancements in wagon design and construction, while consistently exceeding industry standards for quality and safety. Pioneering excellence in railway freight car engineering. We have been shaping the future of cargo transportation with cutting-edge technology, robust designs, and unwavering customer focus. Our variety of wagons caters to every commodity need, ensuring seamless and efficient movement across the country's railway network.

Jupiter Wagons Limited, once known solely for its robust rail wagons, is now boldly rewriting its narrative. Recognizing the shifting winds of the transportation landscape, the company has embarked on a strategic diversification journey, venturing into promising new realms. Beyond steel behemoths, the horizon now encompasses electric commercial vehicles, poised to capitalize on the burgeoning green mobility wave. But innovation doesn't stop there. Jupiter has set its sights on the proliferate business of railway brake systems, brake discs for high-speed LHB coaches and track solutions, leveraging its existing expertise to forge a stronger grip on the industry. This multi-pronged unlocks new avenues for growth and a healthier bottom line. Jupiter Wagons is no longer just an engineering entity of the rail sector; it's a dynamic conglomerate, chugging confidently towards building a product portfolio assortment for the future of mobility solutions.

About Dun & Bradstreet:

Dun & Bradstreet, a leading global provider of business decisioning data and analytics, enables companies around the world to improve their business performance. Dun & Bradstreet's Data Cloud fuels solutions and delivers insights that empower customers to accelerate revenue, lower cost, mitigate risk and transform their businesses. Since 1841, companies of every size have relied on Dun & Bradstreet to help them manage risk and reveal opportunity. For more information on Dun & Bradstreet, please visit www.dnb.com.

Dun & Bradstreet Information Services India Private Limited is headquartered in Mumbai and provides clients with data-driven products and technology-driven platforms to help them take faster and more accurate decisions across finance, risk, compliance, information technology and marketing. Working towards Government of India's vision of creating an Atmanirbhar Bharat (Self-Reliant India) by supporting the Make in India initiative, Dun & Bradstreet India has a special focus on helping entrepreneurs enhance their visibility, increase their credibility, expand access to global markets, and identify potential customers & suppliers, while managing risk and opportunity.

India is also the home to Dun & Bradstreet Technology & Corporate Services LLP, which is the Global Capabilities Center (GCC) of Dun & Bradstreet supporting global technology delivery using cutting-edge technology. Located at Hyderabad, the GCC has a highly skilled workforce of over 500 employees, and focuses on enhanced productivity, economies of scale, consistent delivery processes and lower operating expenses.

Visit www.dnb.co.in for more information. Click here for all Dun & Bradstreet India press releases.

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