Truckers invoke force majeure amid fuel shortage, decline in cargo movement

Truckers have invoked force majeure to seek a temporary suspension of contracted freight rates and a shift to spot pricing, citing severe operational disruptions driven by fuel shortages, supply chain constraints and a sharp decline in cargo flows from ports.

In an advisory issued on March 24, the All India Transporters’ Welfare Association (AITWA) urged customers and trade partners to keep long-term freight contracts in abeyance at least till April 30 and allow shipments to move on mutually agreed spot market rates. The industry body also called for immediate clearance of overdue payments and ad hoc financial support to ease a mounting liquidity crunch among fleet operators.

Sharp reduction in incoming cargo volumes at ports and industrial clusters owing to slowdown in outward movements, resulting in imbalance in vehicle positioning and reduced round-trip viability. Vehicles have to run empty now to manage the demand on many lanes as well

“Transport fraternity is constrained to treat the current developments as a Force Majeure–like operational environment,” the AITWA said in the advisory.

Transporters said the sector is grappling with multiple, simultaneous shocks. Acute diesel shortages at several locations have led to dry fuel pumps and extended vehicle idle time, while the withdrawal of credit sales by fuel stations has further strained cash flows. 

The situation has been compounded by a slowdown in cargo movement from ports and industrial clusters, which has disrupted route economics and reduced round-trip viability, often forcing trucks to run empty on return journeys, according to the truckers’ grouping.

Shortages of gas cylinders and other essential workshop inputs have delayed repairs and maintenance cycles, reducing fleet utilisation and trip frequency. Broader supply chain uncertainty is also affecting driver availability, turnaround times and route planning efficiency.

Taken together, these factors have sharply eroded operating margins and fleet availability, pushing transporters to describe the current situation as akin to a force majeure-like environment.

AITWA argued that contracted freight rates, which are typically fixed over longer durations, no longer reflect the rapidly rising and volatile cost structure. It said a shift to spot pricing would allow rates to adjust to prevailing ground realities and help ensure continuity of cargo movement.

The association warned that without immediate support, service reliability across key trade routes could deteriorate further, risking wider supply chain disruptions. It maintained that the proposed interim measures are necessary to sustain operations and maintain essential cargo flows until conditions stabilise.