Kara Sears
A common carrier is a person or company that transports goods or people for a fee and is required by law to provide its services to anyone willing to pay. The term is most frequently used in the context of transportation, and common carriers are generally of two types: carriers by land and carriers by water. In common law countries, a common carrier is liable for all losses which may occur to property entrusted to their charge in the course of business unless they can prove that the loss was due to an act of God or enemies of the state.
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What You'll Learn
Common carrier vs private carrier
A common carrier is a person or company that transports goods or people. They are generally available to carry any goods or persons a hirer might specify, and they are strictly liable for lost or damaged goods. In common law, a common carrier is entitled to retain possession of the goods until freight is paid, but not to sell or use them.
A private carrier, on the other hand, transports its own goods using its own fleet. The primary business of a private carrier is not the transportation of goods of other companies. Instead, it ships goods that it owns using its own vehicles. Private carriers are not obligated to serve all customers equally, and they do not have to carry everyone who can pay their charges.
The distinction between common and private carriers is important in the trucking industry, as it impacts the operations and requirements of a trucking company. For example, a common carrier must provide its service to anyone who pays its fees, while a private carrier can choose who it serves.
Contract carriers offer a middle ground between common and private carriers. They work with specific clients under private agreements, offering customized services and schedules tailored to their customers' needs. They can provide flexible scheduling options and handle transportation needs over short or long distances.
In conclusion, the key differences between common and private carriers lie in their customers served, commodities transported, and operational logistics. Common carriers serve the general public and are legally required to transport goods for anyone, while private carriers transport their own goods and are not for-hire carriers.
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Common carrier vs contract carrier
A common carrier is a person or company that transports goods, people, or livestock for hire or reward. Common carriers are generally liable for all losses that may occur to the property entrusted to their charge in the course of business. They are also strictly liable for lost or damaged goods. Common carriers are regulated by the relevant regulatory body and are legally bound to carry passengers and goods as long as the fee has been paid and there is space. Common carriers include trucking firms, shipping firms, bus lines, airlines, and rail services.
A contract carrier, on the other hand, is a trucking or shipping company that serves specific customers. They are not common carriers because they do not carry freight for the public. Instead, they work only for organizations or firms that have contracted them. Contract carriers offer specialized services and are often hired when expertise and logistics are required, such as in the case of transporting medical supplies or hazardous materials.
Both common and contract carriers are required to have liability insurance coverage. However, neither is legally required to have cargo insurance, although it is generally advised. In terms of regulations, common carriers are subject to the authority of the states in which they operate, while contract carriers are regulated by the federal government when interstate or foreign transportation is involved.
The choice between using a common carrier versus a contract carrier depends on the goods being moved and their destination. Common carriers are suitable for general transportation needs, while contract carriers are more specialized and cater to specific industries or customers.
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Common carrier liability
In common law jurisdictions, a common carrier is absolutely liable for goods carried by it, with some exceptions. For example, a common carrier may not be liable for losses that occur due to an act of God, the enemies of the country, or the act of the owner of the property. Additionally, sea carriers may not be liable for damages to goods if the damage is a result of a fire on board or a navigational error.
Common carriers are also subject to special laws and regulations that differ depending on the means of transport used. For instance, sea carriers are often governed by different rules than road or railway carriers. Regulatory bodies grant carriers the authority to operate under specific regulations, rates, schedules, and rules. These regulations may include safety standards, such as those enforced by the Federal Aviation Administration (FAA) for commercial airlines.
To hold a common carrier liable for damages or injuries, negligence must often be proven. For example, a common carrier may be liable for a passenger's injuries if they failed to warn about a potentially dangerous condition or did not exercise the utmost care and diligence with respect to their passengers. In the case of lost or damaged goods, common carriers are strictly liable and must answer as an insurer for everything carried.
It is important to note that the term "common carrier" is primarily used in common law systems, such as in the United States, and may not have an exact equivalent in civil-law systems like those in Continental Europe.
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Common carrier rates and charges
Common carriers are private or public entities that transport goods or people for a fee. They are defined by US law as entities that transport goods or people from one place to another for a fee. They are required by law to provide their services to anyone willing to pay. However, they can refuse to provide their services if they have good grounds to do so.
Common carriers often have their own equipment, service offerings, and rates. They usually specialize in a few services, which means that not every carrier will offer the services needed for every shipment. For example, a trucking company that offers expedited and residential shipping services may be required to transport an engine from a shop in Texas to a customer's home in Florida.
There can also be specific fees associated with using a common carrier, especially if they need to remeasure or reweigh freight to ensure a proper fit. Providing accurate shipment information upfront can help avoid additional time and money involved in rechecking. Common carriers may also charge for additional services such as special packaging, multiple stops, and insurance.
In the context of common law, a common carrier is entitled to retain possession of the goods until the freight charges are paid. However, they are not allowed to sell or use the goods unless agreed upon by the parties involved. Common carriers are also generally liable for any losses or damages that occur to the goods in their charge, unless the loss happened due to an act of God, the enemies of the country, or the act of the owner of the property.
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Common carrier regulations
The FCC has the authority to classify telephone services as common carriers and can remove or modify regulations to promote competition, meet consumer demands, and avoid unnecessary costs. Common carriers are generally required to make their services available to the public at affordable rates, without discrimination, and to carry all lawful traffic. They are also liable for any losses or damage to goods during transport, unless caused by an "act of God", an "enemy of the United States", or the property owner.
The definition of a common carrier is important in determining the applicability of these regulations. A common carrier is typically distinguished by their willingness to carry goods or persons for any hirer, without discrimination, and at a reasonable price. However, they may reserve the right to refuse to carry certain goods or persons, provided it is not connected to the profitability of the business.
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Frequently asked questions
A common carrier is a private or public entity that transports goods, people, or both, for a fee.
Unlike a private carrier, a common carrier must provide its services to anyone willing to pay its fees, unless it has grounds for refusal. A private carrier may only be available to specific clients.
Common carriers include taxi services, trucking companies, rail freight services, waste removal services, couriers, vehicle towing services, and air freight services. In the US, telecommunications services and many oil and gas pipeline operators are also considered common carriers.
