Contract Carrier
Contract carriers are for-hire carriers that do not serve the general public but serve shippers with whom they have a continuing contract. The contract carrier must secure a permit to operate.
This type of carrier is often used in specialized shipping such as hazardous materials or oversized cargo. They can also be used for time-sensitive deliveries.
Contract carriers must adhere to all safety and security regulations set by the government.
There are a few key benefits of using a contract carrier. First, they have the specialized equipment and experience necessary to handle difficult shipments. They’re also more likely to be available for last-minute deliveries. Finally, contract carriers often have lower rates than traditional carriers.
The disadvantages of a contract carrier are: they may not have the capacity to handle large shipments, and they may not be available in all areas.
Related Links
Example of Third-Party Logistics Provider Contract
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