Gavin Howe
A common carrier is a private or public entity that transports goods or people for a fee and is required by law to provide its services to anyone willing to pay. In the United States, common carriers are regulated by the Federal Communications Commission under Title II of the Communications Act of 1934. Telecommunications carriers, such as telephone companies, are considered common carriers and are subject to specific regulations, such as the requirement to offer video programming on a common carrier basis or as a conventional cable television operator. Amusement parks with roller coasters, such as Disneyland, have also been deemed common carriers in certain U.S. states. Common carriers play a crucial role in providing essential public services, which leads to increased government scrutiny and state and interstate regulations.
| Characteristics | Values |
|---|---|
| Definition | A private or public entity that transports goods or people from one place to another for a fee |
| Services | Offered to the general public without discrimination |
| Examples | Public airlines, railroads, bus lines, taxicab companies, phone companies, internet service providers, cruise ships, motor carriers, and other freight companies |
| Regulation | Subject to more state and interstate regulations and government scrutiny than other businesses |
| Responsibility | Responsible for any possible loss of goods during transport |
| Licensing | Required to obtain a license or authority from a regulatory body to operate |
| Distinction | Distinguished from a contract carrier, which transports goods for only a specific set of clients, and a private carrier, which may use its own fleet for transportation |
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What You'll Learn
Common carrier vs private carrier
In the United States, a common carrier is defined as an entity that transports people and goods for a fee. They are considered public services and are subject to more state and interstate regulations and government scrutiny. Common carriers are obligated to serve all customers equally, as long as the request complies with legal and operational requirements. They are also responsible for any loss of goods during transport. Examples of common carriers include public airlines, railroads, bus lines, taxicab companies, trucking companies, phone companies, internet service providers, cruise ships, motor carriers, and other freight companies.
Private carriers, on the other hand, transport their own goods using their own fleet of vehicles. They are not for hire and do not provide their services to the general public. Instead, they serve specific clients and can refuse to transport goods for anyone else. Private carriers are usually identified by the company's logo displayed on their vehicles.
Contract carriers can be considered a middle ground between common and private carriers. They offer personalized transportation services under special agreements with specific clients. They can provide flexible scheduling and customized solutions for specialized or recurring shipments.
The distinction between common, private, and contract carriers is important in the trucking industry, as it impacts the operations and requirements of trucking companies. For example, a company might choose to use a private carrier for more convenience, reliability, or cost-effectiveness. However, they may occasionally need to hire a common carrier when their business volume exceeds their in-house capacity.
Regulatory bodies grant carriers the authority to operate under specific terms, rates, schedules, and rules. These bodies can create, interpret, and enforce regulations on carriers, ensuring safety and compliance in their operations.
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Common carrier regulation
In the United States, common carriers are regulated by various federal and state laws, with some variation depending on the industry. For example, telecommunications carriers are regulated by the Federal Communications Commission (FCC) under Title II of the Communications Act of 1934, while common carriers providing telephone exchange services may be subject to state commission jurisdiction or federal regulation depending on the specific circumstances.
One of the key aspects of common carrier regulation is the requirement to provide services to anyone willing to pay, unless there are valid grounds for refusal. This is in contrast to private carriers, which can refuse to provide services to certain clients or enter into selective contracts. Common carriers must also demonstrate to regulators that they are "fit, willing, and able" to provide the services for which they have been granted authority.
Another important aspect of common carrier regulation is liability. Common carriers are generally responsible for any loss or damage to goods during transport. If a complaint is filed against a common carrier, the regulatory body is responsible for investigating the matter and determining whether the complainant is entitled to an award of damages. The common carrier may be directed to pay damages if the complaint is valid.
The specific regulations and requirements for common carriers can vary depending on the industry and jurisdiction. For example, common carriers in the transportation industry may need to follow defined routes, time schedules, and rate tables approved by regulators. In some cases, states may require common carriers to obtain permits or licenses to operate legally. Overall, the goal of common carrier regulation is to ensure that essential services are provided fairly, safely, and efficiently to the public.
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Telecommunications carriers
In the United States, telecommunications carriers are regulated by the Federal Communications Commission (FCC) under Title II of the Communications Act of 1934. The Telecommunications Act of 1996 made extensive revisions to the "Title II" provisions regarding common carriers.
The Communications Act of 1934 requires that telephone companies as "common carriers" make their services available to the general public at affordable rates. The Federal Communications Commission (FCC) has the authority to classify telephone services as common carriers and remove common carrier regulations to promote competition and satisfy consumer demand for individually tailored offerings.
The Telecommunications Act of 1996 gave telephone companies the option of providing video programming on a common carrier basis or as a conventional cable television operator. If a telephone company chooses to provide video programming as a common carrier, it will face less regulation but must comply with FCC regulations requiring "open video systems". The Act also generally bars acquisitions by telephone companies of more than a 10% interest in cable operators and joint ventures between telephone companies and cable operators.
Common carriers are subject to regulation by a regulatory body, which has the authority to create, interpret, and enforce regulations upon them. This regulatory body ensures that common carriers are fit, willing, and able to provide the services for which they have been granted authority. In the case of telecommunications carriers, the regulatory body is the Federal Communications Commission (FCC).
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Common carrier liability
In the context of common law countries, a common carrier is responsible for any possible loss or damage to goods during transport. This liability is absolute, with a few exceptions. For example, according to the Hague-Visby Rules, a sea carrier may escape liability if the damage to goods is due to a fire on board or a navigational error.
In the United States, the term common carrier also extends beyond transportation to include telecommunications service providers and public utilities. These entities are regulated by the Federal Communications Commission under Title II of the Communications Act of 1934. Telecommunications carriers are considered common carriers and are subject to specific regulations and liabilities.
When it comes to personal injury law, common carriers may be held liable for their passengers' injuries if negligence can be proven. This includes failing to conform to safety regulations or not exercising the duty of care. For example, an airline may be liable for a passenger's injuries if it failed to warn about a potentially dangerous condition, such as not turning on the "fasten seatbelt" sign during turbulent weather.
Common carriers are also responsible for ensuring the safe delivery of goods to the agreed-upon destination within a reasonable time frame. They must follow regulated and published routes, time schedules, and pricing tables. If a common carrier fails to meet these obligations, they may be held liable for any resulting damages or losses.
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Common carrier examples
Common carriers are private or public entities that transport goods or people for a fee and are required by law to provide their services to anyone willing to pay. The term is also used to describe telecommunications services and public utilities.
Some common carrier examples include:
- Transportation common carriers: These move people or goods from one place to another. Examples include American Airlines, Delta Air Lines, United Airlines, Southwest Airlines, UPS Freight, FedEx Freight, XPO Logistics, and J.B. Hunt Transport Services.
- Telecommunication common carriers: These transmit information through various means. Examples include telecommunications carriers regulated by the Federal Communications Commission under Title II of the Communications Act of 1934.
- Utility common carriers: These provide essential services like electricity or water. Examples include Pacific Gas and Electric Company (PG&E) and Électricité de France (EDF).
- Digital common carriers: An emerging category that includes some internet service providers (ISPs). Comcast, one of the largest ISPs in the United States, has been at the centre of discussions about net neutrality and whether ISPs should be classified as common carriers.
It is important to note that the term "common carrier" is a common-law term and is seldom used in Continental Europe due to the lack of an exact equivalent in civil-law systems. In the United States, the term may also refer to telecommunications service providers and public utilities, and in certain states, amusement parks that operate roller coasters and similar rides, such as Disneyland.
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Frequently asked questions
A common carrier is a private or public entity that transports goods or people for a fee and is required by law to provide its services to anyone willing to pay.
Common carriers include taxi services, trucking companies, rail freight services, waste removal services, couriers, vehicle towing services, air freight services, and public utilities.
A private carrier transports goods or people for a selected number of clients, whereas a common carrier offers its services to the general public.
Common carriers are regulated by regulatory bodies that are granted "ministerial authority" by the legislation that created them. In the United States, telecommunications carriers are regulated by the Federal Communications Commission under Title II of the Communications Act of 1934.
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