Transport Contract Agreement Format

Sample / Template / Example of Transporter Deed Letter in word/ .doc in India (Chennai, Mumbai, Kolkata, New Delhi)

M/s Transporter Name

Dear Sirs,

Sub. : Transportation of our finished goods from our factory
          at Khapoli, Maharashtra to various destinations.

This has reference to your Quotation No…………………………… dtd………….  and also the discussions your Mr …………………………..…… had with  us from time to time in connection with the above. We are pleased to confirm your appointment as one of our approved transporters for transportation of our finished goods from our factory site at Khapoli, Maharashtra to destinations allotted to you as per tender dtd. ……….. at Nirmal Building, 18th Floor, 45/1 Nariman Point, Mumbia – 458 548  on the following terms:-

01.      The rates of transportation for destinations allotted to you w.e.f. …………… to ……………………..  will be given in Annexure-A.

02.      You will arrange to open a suitable local office at Khapli near our factory site and the same will be manned by you by sufficient number of skilled personnel as required for day to day liaison with our factory Despatch Department.

03.      Your membership of the Indian Banking Association is an essential part of this contract and it will be your responsibility to ensure continuity of this membership during the tenure of this contract.

04.      Our Despatch Department will advise your local representative at Kapoli of our requirement of trucks for various destinations atleast 48 hours prior to the requirement. Trucks must be placed at the site of loading before 1 P.M. We shall have the discretion to refuse or return the truck unloaded which reports for loading after 1 P.M., and in such case any penalty that may be recoverable from you as per Clause 6 of this agreement shall be so recovered. No claim for compensation will be entertained for refusal on our part to load or accept trucks after 1 P.M.

05.      In the event of your failure to place trucks for destinations on which contract is given to you against requisitions given atleast 48 hours in advance within the stipulated date and time. Company reserves right to take trucks from alternative sources, any financial loss sustained by us by way of higher freight will also have to  be made good by you. Our compensation claim in this regard will be fully binding  on  you  and  we  shall be free to adjust the  amount from your pending bills.

06.      In the event of failure on our part to load the trucks after placement by you within the prescribed time limit of 1 P.M. we shall reimburse to you a sum of Rs.500/- per day for such failure from our side.

07.      The goods will be carried by you safely and delivered within the agreed time period as mentioned in Annexure-A  to the destination to such authorised persons as we shall instruct and the consignee's acknowledgement of receipt will be obtained by you and submitted to us along with the bills for payment.

08.      All goods will be insured by us at our cost. However, any shortage at the time of delivery will be made good by you at prevailing dealer prices. Any damage due to  negligence on your part or on the part of your employees or servants or agents shall also be recoverable from you.

09.      Notwithstanding that insurance coverage will be obtained by us, it shall be your responsibility to ensure safety of our products  handed over to you for carriage both in respect of quantity and quality from the time these are handed over to  you until they are delivered to the authorised persons at the various destinations. In particular, you will ensure at all times that the goods are always carried with a complete covering of good quality tarpaulin and not exposed to rain or water, sun,  dust etc. as our Materials can be severely and permanently damaged by such exposure.

10.      If  the  products entrusted to you are totally damaged as a result of accident and such accident is not attributable to  the negligence or criminal act of yourselves or your servants and agents (our decision in this respect being final),  then  in such cases only you shall have no liability to the  extent  determined  by us. In the event of accident it would be your responsibility to send a copy of the original Police  Report along with its English Translation supported by  photographs of  the accident at the shortest possible time as first  hand information to us.

11.      Your representative and/or agents/servants (who shall include drivers of trucks laced by you even though the trucks may not actually belong to you) shall sign our documents while taking delivery of our products and this acknowledgement shall be conclusive proof of the delivery of our products to you.

12.      Our godowns all over the country close on Saturdays at 2 P.M. and deliveries on this day must be made before 12 noon. On other days the trucks must report to our godown before 2 P.M.  In case trucks report at our godowns beyond the above stipulated hours, no detention charge shall be paid by us. If the truck reported after stipulated time as mentioned hereinabove and the next day is Sunday/holiday, no detention will be paid for these two days.

You shall be paid Rs.500/- per day as detention charges for trucks reported before 12 Noon on Saturdays and before 2 PM on other Days for unloading at branches but the same were not unloaded at the same day.

13.      The destinationwise freight rates and maximum permissible transit time for different destinations allowed to you shall be as given in Annexure-A to this agreement.

14.      Not more than one transhipment will be allowed per consignment. You will make necessary arrangements to  ensure that  goods  are  properly unloaded  and  loaded  under your supervision at the transhipment point  and  they  are  not damaged  either by careless handling or by exposure to  rain,  water or fire etc.

15.      Any delays beyond the stipulated transit time shall  attract penalty at the rate of Rs.500/- per day of delay for the first 2 days and Rs.1000/- per day from the third  day  upto and   including  the  7th days and Rs.2000/- per day from  the  8th  days  onwards. Such penalty, which shall be recovered from you, shall be without prejudice and we shall be free to initiate such other actions as the circumstances may call for. However, this penalty will not be applicable incase of acts of God like earthquake, floods, riot and strike anywhere on the usual route from our factory to  the intended destination. The stipulated transit time for various destinations are given in Annexure-A. In case the goods are transported to the respective destinations before maximum time allowed to you, you shall be allowed a bonus @  Rs.500/- per day for the first two days saved and Rs.1000/- per day for  saving between three days upto and including seven days.

16.      In case goods are detained more than 12 hours at transhipment point   or   at   any  other  place enroute to  intended  destination, for reasons  other  than  acts  of   God   like earthquake,  floods,  riot and strike, the Company  shall  be free to arrange alternative mode of transportation  of  such goods  from  the  place where the goods  are  lying to the intended destination. Any extra freight charges, if any, paid by us shall be reimbursed by you and also please note that No. of trucks which are detained at transhipment point in the month will be deducted from next month contract, if allotted to you.

17.      If for any reason including the acts of God mentioned in point No.15 above, the trucks are delayed enroute, it shall be your responsibility to bring the fact of such delay or detention to the notice of the consignee and our authorised representative  at Head Office as well as our nearest  branch office in writing at the earliest possible opportunity.

18.      All bills must be duly supported by signed and stamped receipts by the consignee, certificates regarding shortage and damages (if any) and a copy of challan given by our factory, shall be submitted by you to our Head Office. It shall be our endeavour to pay your bills within 40 days from the date of receipt of your bills subject to such deductions as are being expressly provided for under various clauses of this agreement.  

19.      You shall not appoint or arrange any sub-carrier under you to perform or discharge any of the obligations under this agreement without our prior express written permission.

20.      The Conditions of Carriage, if any, contained in your Consignment Notes to the extent that these are in conflict with or are repugnant to the conditions of Carriage as contained in this agreement shall be null and void and shall have no effect.

21.      You shall instruct the drivers of trucks sent by you to the factory for loading our materials to observe the discipline, rules and  regulations  of  our  factory  and   to   ensure movement/parking of all vehicles as per directions of the authorised representatives in our factory. Any damage caused to our property or the property of the consignee by your trucks or by your staff or servants or agents either willingly or otherwise shall be made good by you at rates as determined by us and our decision in this regard shall be final.

22.      It shall be your responsibility to ensure that all statutory obligations with respect to the trucks and labour and/or staff or agents entering our factory are met with by you. In the event of your failure to do so and in the event of not having to discharge such obligations on your behalf you shall indemnify us for all such expenses incurred by us your account.

23.      Normally material despatched to our branches are off-loaded in our godowns. In the rare event of our requiring you to store our material no storage charge would be paid for any period upto 30 days. Storage charge beyond this period will be paid as mutually agreed between us.

24.      It is clearly understood that this agreement is not exclusive and we shall have the option to engage the services of other transport contractors as may be felt necessary by us.

25.      The destinationwise freight rates as mentioned in Annexure-A & B to this letter shall remain in force till the validity of  this contract as mentioned in Clause 26 hereof and shall  not be varied under any circumstances.

26.      This agreement shall be valid from ……………… and shall be valid upto ……………. The agreement may be extended on mutually agreed terms thereafter.

27.       You shall submit a Bank Guarantee of Rs.15,00,000/- (Rupees Fifteen lacs only) in favour of our Company.

28.      Notwithstanding the provisions of Clause 25 above either party may terminate this agreement by giving 15 days notice in writing. However, the agreement may be terminated forthwith without any notice by us if any breach of any of the terms and conditions of the agreement as laid down above is committed by you. 

This agreement is being sent to you in duplicate. Kindly sign the same and return a copy to us as a token of your acceptance.

Thanking you,

Yours faithfully


Encl: As above.



We  have  read and understand all the terms and  clauses  of  the agreement. We have fully agreed and accepted the same.                 


      Annexure `A' forming part of our letter dated                  to M/s

Sl.No.1.  Rate of transportation from -----to-----------for North/West destinations :

          Ex-Khapoli            Rate/MT     Transit time         Minimum
          to North/West                          (days)            guaranteed
          destinations                                                  load (MT)
          (VIA NAGPUR)                       
          ----------------       -----------    --------------         -------------                                      

Sl.No.2  Rate of transportation from  -------- to ---------- for South/East destination :
       Ex-Khapoli to            Rate/MT    Transit Time       Minimum
       South/East                                    (days)         guaranteed
       destinations(VIA                                                load (MT)
       PATNA \
       --------------------       ----------    ---------------       --------------

In case the materials are despatched from Patna/Ranchi to our branch, rate will be applicable as contract rate minus Union Rate i.e. from Khapoli to Patna/ Ranchi minus loading  & unloading charges.


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