Exempt Carrier

An exempt carrier is a for-hire carrier that is free from economic regulation. Trucks hauling certain commodities are exempt from Interstate Commerce Commission economic regulation. By far, the largest portion of exempt carriers transports agricultural commodities or seafood.

  • Exempt carriers are not subject to many of the rules and regulations that apply to other types of carriers, such as large trucking companies.
  • This means that they can set their own rates and do not have to comply with hours-of-service regulations.
  • Exempt carriers also do not have to file proof of financial responsibility with the federal government.

The main advantage of being an exempt carrier is that it allows smaller trucking companies to compete against larger ones. This can be beneficial for both consumers and businesses, as it can lead to lower prices and more choices.

However, there are some disadvantages to being an exempt carrier:

  • One is that exempt carriers are not subject to the same safety regulations as other trucking companies. This means that they may not be as safe.
  • Another disadvantage is that exempt carriers may not have the same level of insurance as other trucking companies. This could mean that if there was an accident, the damages might not be fully covered.

Overall, being an exempt carrier has both advantages and disadvantages. It is important to weigh these carefully before deciding whether or not it is the right choice for your company.

Related Links

Exempt Carrier Definition – Operations & Supply Chain Dictionary
Exempt Carrier – SCM wiki
Exempt Carrier – Definition of Exempt Carrier by Merriam-Webster
What is an exempt for-hire (exempt commodities) motor carrier?
Logistics 101: Motor Carriers – Material Handling and Logistics (MHL News)