Cargo Shipping in India: A Practical Guide for Small Businesses

Most online sellers start with courier parcels. Then a dealer in Hyderabad orders 300 kg of kitchenware, or you need to move a month’s stock from your Delhi unit to a rented godown near Kolkata, and the parcel rate card stops making sense. That is when you start hearing words like PTL, FTL, docket, CFT and POD.

This guide explains cargo shipping in India in plain terms: the modes, how freight is priced, how to pack and document a consignment, and what to do when something arrives damaged. If you are unsure whether your shipment is cargo at all, read our comparison of B2B and B2C shipping first.

When a shipment becomes “cargo”

There is no legal weight that turns a parcel into cargo. In practice, think about cargo services when:

• A single consignment is heavy, often tens or hundreds of kilograms.
• It has several cartons going to one receiver.
• The receiver is a business with a loading area and working hours.
• You are moving stock between your own locations.

For consignments in the middle, perhaps 10 to 30 kg, price both a parcel service and a freight service. The answer changes with your lanes and rate cards.

The main cargo modes in India

Mode	How it works	Suits
Part truck load (PTL)	Your cartons share a truck with other shippers and move through the carrier’s hubs	Regular B2B consignments too small to fill a truck
Full truck load (FTL)	You hire the whole vehicle, which goes directly from pickup to delivery	Large stock transfers or bulk orders that fill a truck
Rail	Goods move by train, with trucks for pickup and delivery at each end	Long routes and large volumes where time is less critical
Air cargo	Goods fly between airports, with road legs at both ends	Urgent or high-value consignments
Coastal shipping	Containers move by sea between Indian ports	Very large volumes between coastal regions

Most small and mid-sized sellers use PTL road freight for routine B2B work, air cargo for the occasional urgent order, and FTL once volumes are large. Our guide to air cargo vs surface cargo goes deeper into choosing between flying and trucking.

How cargo is priced

Cargo quotes look simple (“Rs X per kg”) but the bill depends on several items. Ask for each of these in writing:

1. Chargeable weight. Like couriers, cargo carriers charge on the higher of actual and volumetric weight. Surface carriers often convert volume using a factor per cubic foot (CFT) on their rate card, while air carriers use their own divisor. Bulky, light goods such as pillows or plastic containers are hit hardest.
2. Minimum charge. Most freight services bill a minimum weight or a minimum amount per consignment. A 12 kg consignment may be billed as if it were heavier.
3. Docket or consignment note charge. A fixed charge per booking.
4. Pickup and delivery. Some quotes are depot to depot. Door pickup and door delivery may cost extra.
5. Out-of-delivery-area surcharge. Remote pincodes often carry an extra charge. Check coverage with the pincode serviceability checker before you promise a delivery date.
6. Handling. Heavy single pieces, odd shapes and floor or appointment deliveries may carry surcharges.
7. Fuel surcharge. Many carriers apply a surcharge that changes with fuel prices.
8. Insurance or risk charge. Goods may travel at “owner’s risk” (you bear loss) or “carrier’s risk” (the carrier accepts liability for an extra charge, within limits).
9. Demurrage or storage. If the receiver refuses or delays acceptance, storage charges can start after a set period.

When you compare quotes, total them for the same consignment. Our guide on how to compare courier rates shows the method for parcels, and the same thinking applies to freight.

Packing for cargo

Cargo is loaded, unloaded and stacked several times, often by hand and alongside other shippers’ goods.

• Use strong cartons. Choose corrugated boxes rated for the weight. Avoid reusing soft, dented boxes for heavy goods.
• Fill the space. Empty space lets contents shift and cartons collapse when stacked.
• Label every carton. Write the consignee’s name, address, phone number, invoice number and the carton count (“3 of 8”).
• Group and strap. Strap cartons for one receiver together, or palletise larger consignments, so pieces do not get separated at a hub.
• Mark fragile and orientation. “This side up” and “Fragile” labels help, though they are not a substitute for good packing.
• Weigh and measure. Record each carton’s weight and dimensions. If the carrier’s billed weight differs from yours, these numbers are your evidence.

Documents that travel with cargo

For goods moving within India, a consignment usually needs:

• Tax invoice or delivery challan. A delivery challan is typically used for stock transfers and certain other movements without a sale. Your CA can tell you which applies.
• E-way bill. The official e-way bill system describes it as an electronic document for the movement of goods worth more than Rs 50,000. Part A has the invoice and goods details; Part B has the vehicle or transporter details. Its validity depends on distance: for normal cargo it is one day for every 200 km or part of it. Some states set different limits for movement within the state.
• Packing list. Shows what is in each carton.
• Consignment note (LR or docket). Issued by the carrier when it accepts the goods. Keep your copy; it is the receipt for your consignment.
• Product-specific documents. Some goods, such as food or regulated items, may need licences or certificates to travel with them.

GST rules on documents have conditions and exceptions. Confirm your case with a chartered accountant.

Booking a cargo shipment, step by step

1. Get quotes from two or three carriers or a platform that compares them, for your actual weight, dimensions and pincodes.
2. Confirm the service level: door or depot, expected transit time, and whether delivery appointments are possible.
3. Pack, label and weigh every carton. Photograph the packed consignment.
4. Prepare documents, including the e-way bill where needed.
5. Hand over and collect the consignment note. Check the carton count and weight written on it.
6. Share tracking and the receiver’s contact details, working hours and any appointment needs.
7. Collect proof of delivery, signed and stamped where possible.

Moving heavier, multi-box consignments? Courier Tales also handles B2B shipments; ask our team about your lanes.

Create your Courier Tales account

Damage, shortage and claims

Most cargo disputes come down to evidence.

• At dispatch: photos of the packed cartons, recorded weights and dimensions, and a carton count on the consignment note.
• At delivery: the receiver should check the count and outer condition before signing, write any damage or shortage on the proof of delivery, and photograph it.
• After delivery: raise the claim with the carrier promptly, within the time limit in its terms, attaching the invoice, packing list, consignment note and photos.

Carrier liability is usually limited by the terms of carriage unless you paid for carrier’s risk or bought separate transit insurance. For valuable consignments, ask about insurance before booking, not after something breaks.

Common cargo mistakes

• Comparing rate per kg and ignoring minimum charges and surcharges.
• Shipping light, bulky goods without checking the volumetric conversion.
• Sending several cartons without a count on each label.
• Forgetting the e-way bill on a high-value consignment.
• Not telling the carrier the receiver’s working hours, leading to failed deliveries and storage charges.
• Letting the receiver sign “received in good condition” without checking.

Final thoughts

Cargo shipping is less mysterious than its jargon suggests. Know the chargeable weight, read the full rate card, pack for rough handling, carry the right documents and collect proof at both ends. Do those five things and most cargo problems either do not happen or are easy to settle.

If your business sends both consumer parcels and heavier consignments, create your Courier Tales account and ask our team about B2B lanes alongside your everyday orders.

Frequently asked questions

What is the difference between courier and cargo shipping?

Courier services are built for individual parcels, priced per piece in weight slabs and delivered door to door. Cargo or freight services move heavier consignments, often several cartons or pallets, priced per kilogram with minimum charges. The line blurs in the middle, so compare both for consignments of moderate weight.

What is part truck load (PTL)?

Part truck load means your goods share a truck with other shippers' consignments. You pay for the space or weight you use rather than the whole vehicle. It suits businesses that send a few hundred kilograms rather than a full truck at a time.

Which documents do I need to send cargo within India?

Usually a tax invoice or delivery challan, an e-way bill when the value requires one, a packing list and the carrier's consignment note. Some products need extra documents. Confirm the GST paperwork for your consignment with your CA.

How do I claim for damaged cargo?

Ask the receiver to note the damage or shortage on the proof of delivery before signing, and to take photographs. Then raise a claim with the carrier within the time its terms allow, with your invoice, packing list and photos. Insurance cover, if you bought it, follows its own claim process.

Is rail cheaper than road for cargo?

It can be on long routes with large volumes, but it depends on the lane, the first- and last-mile trucking at each end, and how often trains run. Ask for quotes on your actual consignment, including pickup and delivery, before deciding.

Sources

1. E-Way Bill System, Goods and Services Tax Network (GSTN), Government of India (accessed 2 November 2026)
2. E-Way Bill FAQs, Goods and Services Tax Network (GSTN), Government of India (accessed 2 November 2026)

Courier, marketplace and tax rules change. Check the current terms with your courier, marketplace or adviser before relying on them.