Posted in Operations and Supply Chain Terms, Total Reads: 250
Definition: Private Carrier
A private carrier refers to a company that owns the vehicles used to transport its goods. A private carrier is not a company that is a primary transporter of goods. Hence, its services dos not include transportation per se. It doesn’t transport goods of other companies.
1. Companies wish to have their own fleet to have independence with the cost per volume of goods transported.
2. They make use of contract carriers when their own fleet falls short.
3. The company vehicle may also aid in advertising purposes.
4. They have their own discretion to sell their services or not.
Common Carrier is different from a Private carrier in a way that it has the main purpose of transportation, so the discretion is somewhat diminished. Trucks are the most preferred private carrier. Though airlines and ships are used too. There is a concept of blended operation where both private and common carriers work together.