Legal Definitions - contract carrier

A contract carrier is an individual or company that provides transportation services for goods or people under a specific agreement with a particular customer, rather than offering services to the general public.

Unlike a "common carrier" (which serves anyone who requests their services, like a public bus line or a general freight company), a contract carrier tailors its services to meet the unique needs and terms outlined in a private contract with each client. This often involves dedicated equipment, routes, or specialized handling procedures.

Here are some examples to illustrate this concept:

• Dedicated Logistics for a Supermarket Chain: Imagine a trucking company, "FreshRoutes Logistics," that signs a multi-year contract with a large supermarket chain, "GroceryMart." Under this agreement, FreshRoutes Logistics is solely responsible for transporting fresh produce and dairy products from various regional farms and processing plants directly to GroceryMart's distribution centers and individual stores. FreshRoutes Logistics does not accept shipments from other businesses or offer its trucks for general public use; its entire operation is dedicated to fulfilling the terms of its contract with GroceryMart.

  This illustrates a contract carrier because FreshRoutes Logistics is providing transportation services exclusively for one specific client (GroceryMart) based on a negotiated, private agreement, rather than offering its services to any member of the public.

• School Bus Transportation Service: Consider "SafeRide Buses," a company that has a formal contract with the local school district to transport students to and from designated schools along specific routes each weekday. SafeRide Buses operates its fleet solely for this purpose during school hours and does not function as a public transit system, nor does it offer charter services to the general public for events or tours.

  SafeRide Buses is a contract carrier because it provides a specialized transportation service exclusively for the school district under a defined contractual agreement, rather than making its services available to the broader public.

• Specialized Equipment Hauling: A company named "HeavyLift Transport" specializes in moving oversized and delicate industrial machinery. They enter into a specific contract with "MegaCorp Manufacturing" to transport a newly fabricated turbine from MegaCorp's factory to a power plant construction site. This contract specifies the type of specialized trailers, escort vehicles, and precise handling procedures required for this unique shipment. HeavyLift Transport does not advertise general freight services or accept small, miscellaneous loads from various customers.

  HeavyLift Transport acts as a contract carrier because its service is customized and provided under a specific agreement for a particular client (MegaCorp Manufacturing) for a specialized task, rather than offering general hauling services to anyone who might need them.