Roads, Highways, Cargo, Air-Cargo and Logistics infrastructure – Bharatmala, LEEP, SetuBharatam, etc.

National Freight Index (NFI)


From UPSC perspective, the following things are important :

Prelims level : National Freight Index (NFI)

Mains level : Utility of NFI

  • In its bid to bring transparency in the road-freight marketplace, Gurgaon-based logistics start-up Rivigo has launched National Freight Index (NFI).

National Freight Index (NFI)

  • The NFI aims to provide live freight rates for different lanes and vehicles across the country.
  • It gives live spot rates on over 7 million lane and vehicle type combinations in the country.
  • It will bring a pricing transparency, in a system where the demand traditionally flows from transporters, brokers, fleet owners and then to drivers.
  • The actual freight rates are in Indian rupee per ton-km and in terms of relative movement with respect to a base month, and would be updated in real time.
  • It will also give historical spot price movements of the road freight industry.

How it’s computed?

  • Rivigo has adopted machine-learning and economics powered pricing algorithms.
  • The rates on the exchange and index are computed using millions of data points from historical transactions, current market dynamics, micro market insights and other factors.

Utility of NFI

  • The Indian road freight market size is estimated at $150 billion-$160 billion, of which $130 billion-$140 billion is full-truck load (FTL) market, but it has been facing a growing challenge of shortage of truck drivers.
  • There are high inefficiencies in the existing freight market, which leads to a great loss of value.
  • Nobody wants to be a truck driver anymore and the country could face a 50% shortage of truck drivers by 2023.
  • Logistics account for nearly 14% of India’s GDP and 70% of it comes from road transportation.
  • But, there is no pricing transparency and working conditions of drivers is deplorable.
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