What is a Carrier in logistics?
A carrier is a company or a person legally entitled to transport goods by land, water, and air. Usually, the carrier works with shippers to ship goods from one place to the other.
There are two main types of carriers or methods by which goods are delivered:
- Common carrier: refers to the transport provider that offers his services to any person or company, as he is entitled to do so under the license provided by a regulatory body. The common carrier is able to work with more shippers within the same day because he is not bound by any contract.
- Contract carrier: refers to the company or person who provides transport services for a specified shipper on a long-term basis. This means the contract carrier reaches a common agreement with the shipper and agrees to work under certain conditions over the length of the contract.