Contract Carrier - Meaning & Definition

Published by MBA Skool Team, Last Updated: November 26, 2015

What is 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.


This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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