Contract Carrier

Posted in Operations and Supply Chain Terms, Total Reads: 210

Definition: Contract Carrier

A contract carrier is a transporter who carries goods from one place to another under a contract of carriage. Such a carrier does not transfer goods for general public but only for a limited number of customer. A contract of carriage is an agreement binding in nature which contains the terms of carriage including the rights and obligations of a carrier and a shipper.

In consideration for fare or freight, the carrier delivers the goods from the place of departure to the destination as mentioned in the contract. Such contract carries various issues associated with the delivery of the goods like the liability and the compensation for the damage caused to the goods. It also contains the policies of the carrier regarding cancellation and delays.

A contract carrier simply a person or a company that transports goods only for certain number of clients and have the authority of refusing to transport goods for anyone else.



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