Contract Carrier: An entity or an individual carrying goods or people of the public or of some customers only, and not the products of or the general public. Unlike a general carrier, a contract carrier usually has a legal right to decide or refuse to carry freight or passengers for payment. If you have a contract with a car carrier that allows you to use their terminal at a fee if you are paying for the privilege of using the contract carrier terminal you have the legal right to use it, even if you are not actually using the car. You are only using it for the privilege of paying the fee. In this case, you would be considered a contract carrier even though you are not actually using the car.
Freight forwarders do not have a contractual relationship with contract carriers. Under normal conditions, they would not provide their services if they did not have to. However, some companies have become increasingly dishonest in their attempts to appear legitimate. In some instances, they will offer to deliver goods but at a much higher price than they might otherwise. Some even add surcharges beyond the base price and then tack on extra fees and charges for unanticipated events.
Transported the shipper
A contract carrier is only responsible for moving the goods from the shipper’s terminal to the customer’s terminal. The shipper will only pay the motor carrier for the distance traveled. Neither the motor carrier nor the shipper has any responsibility for the condition of the goods once they have been transport. Once they have been transport the shipper has the responsibility for storing the goods and ensuring they are in good working order and safe enough for their journey.
There are two types of contract carriers. There are common law carriers and there are authorize DUI private hire companies. In the United States, a common-law carrier is require to obtain an authority license in order to provide non-emergency vehicle transportation services. Authorized DUI private hire companies are not require to obtain an authority license and are not require to provide insurance or customer protection in the event that the vehicle they are operating is used for unlicense business purposes. In most countries, an authorized DUI private hire company is require. To have insurance and customer protection in addition to meeting general laws governing commercial vehicle transportation.
Transportation of the goods
Common law contract carriers do not generally keep logs of the loads. Or the drivers they use for the transportation of the goods. Many of them have a one-day recall period in which they are require to record all occurrences involving vehicles and goods that are being transport. If an accident occurs that causes damage to the goods the insure can be held responsible for repair costs.
On the other hand, there are unlicense for-hire carriers. Unlicense contract carriers are require to obtain an authority license from the local government in which they operate. They must also meet certain licensing requirements such as financial responsibility, a security plan, business plans, and annual performance audits. These companies are required by law to ensure the transport of goods and vehicle safety. They are require to submit records of their registration and performance to the regional authorities where they operate.
Some people think that when a trucking or transportation business. Uses a contract carrier to move goods, they are using a common carrier. The use of the word common does not mean that all trucking and transportation businesses do use common carriers. When you transport goods by means of a contract carrier you are using a contracted agent. If you were to transport your goods by trucking from one place to another. Then you would be transporting goods by a common carrier. To keep things simple simply remember logistics warehouse management that when you transport goods by a common carrier the business owner is responsible for the transportation of your goods of yours. When you use a contracted agent to move your goods. You are only responsible for the transportation of the agent’s goods.