Freight carrier

From CEOpedia | Management online

Freight carrier is an entity that provide services transport available for a fee. Public carrier does not distinguish their customers. Public transport operator is closely regulated in the economic aspect. It provides shipping services, providing equal treatment of all clients and receives well-defined tariffs.

Responsibilities of freight carriers

The public freight carrier is responsible for the entrusted goods. Freight rates are set in such manner to protect the interests of shippers as well as should secure adequate earnings for the carrier. Such economic requirements shall ensure the continuity of the transport service.

Contract carrier is the carrier hired to handle one or a certain (limited) number of shippers. Operation is carried out on the basis of a special agreement. Contract carrier activities is regulated.

Unlike public carrier-contract carrier does not have a legal obligation to provide services. In the contract are defined: transport rates, the extent of the legal liability, the type of services and equipment with which the service is performed. The rates charged by the contract carriers are usually lower than public carriers. Because contract carriers does not have obligation to service all customers, he can focus on their specialized business.

Private freight carrier - company that meet their transportation needs by its own means of transportation. The carrier does not offer or provide its services to other companies. It is a company that transports the goods being owned, leased or located in the deposit.

Private carrier market is dominated by road transport. The primary argument for using own transportation services is costs and levels of support. Using own transportation allows for greater control and flexibility of reaction but also has large capital and workforce needs.

Liability of the freight carrier

The carrier's liability for nonperformance or improper performance of the contract of carriage occurs when a passenger has suffered damages as a result of premature departure of the vehicle. Responsibility of the carrier shall be exempt when the damage was not due to wilful misconduct or negligence.

Carrier is not liable for any damage to things carried by travellers under their own supervision, provided that the damage was not caused by his fault. This responsibility obliges the carrier, when he pointed the storage location for these things, in which the passenger is not able to control them.

Freight carrier's liability for non-performance or improper performance of the contract of carriage of goods

The carrier's liability is when he will lose or damage the consignment, since the takeover of the consignment until its release by the carrier. The carrier's liability also arises in the case, if there is a delay in shipping. The carrier may be exempted from this liability, when the loss or damage or delay in the carriage was not his fault, and the fault of the sender, the recipient, the properties of shipment or for reasons of force majeure.

In addition, the carrier is relieved of liability if there is at least one of the following prerequisites:

  • Name given to items excluded from carriage or carried on special terms is inconsistent with reality, inaccurate or insufficient, or the sender does not keep the above-mentioned rules
  • Shipment is given in improper or defective package, which expose other shipments transported to possible damage.
  • Consignment is especially susceptible to damage due to defects or natural properties
  • Damage was caused by improper loading, placement or discharge by the sender or recipient
  • Damage occurred on the item, which according to applicable provisions or agreements should be regularly inspected and the damage could have been avoided exercising supervision

See also:

Examples of Freight carrier

  • FedEx: FedEx is an American multinational delivery services company headquartered in Memphis, Tennessee. FedEx provides a wide range of services including air and ground delivery, freight forwarding, and customs brokerage.
  • UPS: UPS is an American multinational package delivery company headquartered in Sandy Springs, Georgia. UPS is one of the largest package delivery companies in the world, providing air and ground freight services as well as supply chain management services.
  • DHL: DHL is a German logistics company that provides international express mail services. DHL provides air and ground freight services as well as customs brokerage, warehouse and distribution services.
  • Maersk: Maersk is a Danish shipping and logistics company. Maersk provides a wide range of services including container shipping, port services, and transportation planning.
  • C.H. Robinson: C.H. Robinson is an American third-party logistics services provider headquartered in Eden Prairie, Minnesota. C.H. Robinson provides freight forwarding, truckload, air and ocean freight services, customs brokerage, and supply chain management services.

Advantages of Freight carrier

One of the key advantages of freight carriers is the ability to move large and heavy packages to any destination quickly and reliably. Here are some of the key advantages of using a freight carrier:

  • Easy to Track - Freight carriers provide the ability to track shipments in real-time, allowing customers to stay informed of their package’s progress and ensure timely delivery.
  • Cost Savings - Freight carriers offer competitive rates and discounts based on volume, making them a more cost-effective choice for businesses that need to ship large quantities of products.
  • Reliability - Freight carriers are typically more reliable than traditional shipping methods, ensuring that packages arrive on time and in good condition.
  • Flexibility - Freight carriers offer flexible shipping options, allowing customers to select the most cost-effective and efficient way to transport their goods.
  • Safety - Freight carriers are experienced with transporting heavy and fragile items, and have the necessary safety protocols in place to ensure the safe delivery of your goods.

Limitations of Freight carrier

  • Freight carriers have limited access to certain areas and locations, as some areas may be too dangerous or difficult to access.
  • Freight carriers are limited in the size and shape of cargo that can be transported, as it must fit into the carrier’s vehicle.
  • Freight carriers may have strict regulations regarding hazardous materials, and may be unable to transport them.
  • Freight carriers may be limited in terms of the speed in which goods are transported, as they will need to comply with speed limits and traffic laws.
  • Freight carriers may need to adhere to certain environmental regulations and standards, which can increase costs and limit the goods they can carry.

Other approaches related to Freight carrier

The following are other approaches related to freight carrier:

  • Intermodal freight transport: Intermodal freight transport, or combined transport, is an approach to freight transportation that combines two or more modes of transportation, such as rail, truck and ship, to move goods from one place to another. This approach is used to reduce the costs associated with transportation and to improve the efficiency of the operation.
  • Specialized freight carriers: Specialized freight carriers are companies that specialize in specific types of freight and have specialized equipment, such as flatbed trailers, to accommodate the type of freight being transported.
  • Logistics provider: A logistics provider is a company that coordinates the transportation, storage and distribution of goods. It is responsible for the management of the entire supply chain, from the point of origin to the point of consumption.

In summary, other approaches related to freight carrier include intermodal freight transport, specialized freight carriers and logistics providers. These approaches are used to reduce transportation costs and improve the efficiency of freight transportation.


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