How to choose a transporter in India: checks, RFQ and SLAs

A transporter is not a commodity, even when the quotes look alike. Two carriers quoting the same rate on the same lane can deliver very different results: one places trucks on time, returns proofs of delivery within days and settles a damage claim without argument; the other misses placements in peak season and leaves you chasing paperwork.

This guide sets out what to check before you appoint a transporter, how to structure a request for quotation so the answers are comparable, what to put in the contract, and which warning signs to take seriously.

Step 1: Verify the basics

These checks take an afternoon and remove most of the risk.

GST registration and GTA status

Look up the transporter’s GSTIN on the GST portal. Confirm the legal name, the principal place of business, and that the registration is active. Ask whether it operates as a Goods Transport Agency (GTA), issuing consignment notes, and whether it charges GST under reverse charge or has opted for forward charge for the year. This affects your tax treatment; see our GST and e-way bill guide.

Common-carrier registration

The Carriage by Road Act, 2007 requires common carriers to be registered with the authority designated under the Act, and sets out their liability for goods and the consignment-note regime. Ask for the registration certificate and check it is current.

IBA approval, where relevant

The Indian Banks’ Association runs a scheme approving transporters for carrying goods financed by member banks. If your working capital is bank-financed, your lender may require the consignment note of an IBA-approved transporter. Ask for the approval code and its validity date. For reference, SSL’s IBA-approved transporter code is CAS-1259, valid to 31 December 2027.

Insurance

Understand what cover exists and who holds it:

• Transporter’s liability cover, protecting the carrier’s own liability
• Your own transit or marine-inland policy, protecting the goods
• Vehicle insurance on each truck placed

Ask for policy documents, sums insured and exclusions. Agree in writing who insures the goods, because the answer decides who files the claim.

Vehicle and driver documents

For each truck placed: registration, fitness, national or state permit as needed, insurance, PUC, and the driver’s licence. A good transporter checks these before placement, not after an incident.

Step 2: Understand how the transporter operates

Fleet and network, asked honestly

Most road freight in India moves on trucks hired from owners or attached to a transporter, not on vehicles the transporter owns. That is normal. The useful questions are:

1. What share of trucks on my lanes will be owned, attached or market-hired?
2. How are hired trucks and drivers vetted before placement?
3. Who is accountable for the load, whatever the truck’s ownership?
4. How does placement hold up in peak season?

A transporter that answers these plainly is more trustworthy than one that claims a large owned fleet it cannot show.

Branch coverage

For part-load in particular, the network decides service. Ask for booking and delivery branches in your origin and destination regions, and whether remote pin codes are served directly or by another carrier.

Tracking

Ask what tracking exists: GPS on the vehicle, SIM-based tracking via the driver’s phone, or manual updates. Ask how you will see it: a portal, an app, or regular reports. For cold chain, ask whether temperature is visible live.

Proof of delivery discipline

POD speed is a good test of an operation. Ask how PODs are captured (scan, app, paper), how quickly they reach you, and whether billing waits for POD.

Claims record

Ask for recent claim volumes relative to shipments, average settlement time, and one or two worked examples. A transporter that has never had a claim either moves very little or does not record them.

Step 3: Structure the RFQ

A good request for quotation makes answers comparable. Include:

1. Lanes: origin and destination with pin codes
2. Volumes: expected trips or tonnes per month per lane, with seasonality
3. Vehicle types: size, body and any special needs (reefer, high-cube, ODC)
4. Service type: FTL, PTL, dedicated, or a mix
5. Loading and unloading conditions: hours, typical dwell, who provides labour
6. Free time and detention terms you expect
7. Payment terms you can offer
8. Tracking and reporting requirements
9. Insurance expectations
10. KPIs you will measure against

Ask bidders to quote in a fixed format, per lane and vehicle, with inclusions and exclusions listed. Ask for the GST basis explicitly. Our guide on how freight is priced helps you read what comes back.

Step 4: Put KPIs and SLAs in the contract

Measure what matters, define it precisely, and agree the data source.

Three rules make KPIs work:

• Define the clock. When does transit start and end? Which timestamp wins if two disagree?
• Share the data. Both sides should see the same numbers.
• Attach a consequence, positive or negative, that both sides accept.

This is the logic behind a 4PL control tower: one shared, time-stamped record that both shipper and transporters work from.

Step 5: Start small, then scale

Before handing over a whole network:

1. Award a trial lane or two for a month or a quarter
2. Measure against the KPIs you defined
3. Review openly with the transporter, including what you could do better at your own docks
4. Scale up where results hold

Red flags

• A rate far below the market with no clear reason
• Reluctance to share registrations, insurance or references
• No written rate agreement or refusal to define detention
• Vague answers about who owns or controls the trucks
• No POD process, or PODs that arrive weeks late
• Claims that are “always settled” but with no examples
• References whose contacts cannot be reached
• Pressure to pay large advances before any trucks are placed

Checklist

Before appointing a transporter:

• GSTIN checked and active; GTA status and GST basis confirmed
• Common-carrier registration under the Carriage by Road Act seen
• IBA approval code and validity checked, if your lender needs it
• Insurance documents seen and responsibility for goods cover agreed
• Owned, attached and hired mix explained honestly
• Branch coverage confirmed for your pin codes
• Tracking method and visibility demonstrated
• POD process and turnaround agreed
• Claims record and settlement time discussed with examples
• RFQ answered in a comparable, per-lane format
• KPIs, definitions, data sources and consequences in the contract
• At least two references contacted
• Trial lane agreed before full award

To include us in your next RFQ, request a quote. For regular volume on fixed lanes, see our dedicated fleet service.