Carrier
Definition
A carrier is a company that physically transports freight, such as a trucking company, ocean line, airline, or railroad. Carriers contrast with intermediaries like brokers and forwarders, who arrange transport but do not operate the equipment.
In Practice
Carriers are classified by mode and by role: asset carriers own trucks, vessels, or aircraft, while brokers and forwarders arrange capacity from them. In trucking, common carriers serve the general public under published terms, while contract carriers work under dedicated agreements. The carrier on a shipment is the party legally liable for the goods while in transit, as documented on the bill of lading.
For a planner, carrier management is a portfolio exercise. Each lane needs primary and backup carriers, tender acceptance and on-time performance need monitoring, and volume commitments need honoring, because carriers prioritize shippers who tender the freight they promised. Cheap carriers that reject tenders in tight markets can cost more than their savings.
A practical example: a shipper's routing guide names a primary carrier at contract rate on each lane, a second and third backup, and a spot broker as a last resort when all three decline.
Related Calculators
Related Terms
The shipper is the party that tenders goods to a carrier for transport, typically the seller or origin facility named on the bill of lading. In freight contracts, the shipper is the carrier's customer.
ConsigneeThe consignee is the party to whom a shipment is addressed and delivered, named on the bill of lading as the receiver of the goods. The consignee is usually, but not always, the buyer.
Freight RateA freight rate is the price a carrier charges to move a shipment between two points, quoted per container, per truckload, per hundredweight, or per kilogram depending on the mode. Rates vary with distance, capacity, commodity, and market conditions.
Bill of LadingA bill of lading is the legal document issued by a carrier that serves as a receipt for goods, evidence of the transport contract, and in ocean shipping, a document of title to the cargo. It travels with, and controls, the shipment.