What is a Logistic Carrier?
Logistics is the art of ensuring that products, goods, and services are available in the right place at the right time. One of the most critical roles in this process is played by logistic carriers. A logistic carrier refers to companies or individuals who transport products and goods safely and effectively from one point to another. These carriers can have various modes of transport, such as sea, air, land, or rail. Considering the complexity of the modern supply chain and the effects of globalization, the importance of logistic carriers is increasing. These carriers play a key role in ensuring the continuity of the flow of goods and products, meeting both businesses and consumers’ needs.
Types of Logistic Carriers
Common Carrier
The term “Common Carrier” describes firms or individuals offering public transportation services. Common carriers are obligated to provide service to everyone on equal terms, usually transporting goods from one place to another for a specific transportation fee.
Features:
- No Discrimination: Common carriers do not discriminate based on the goods or the customer. They are obligated to provide equal service to everyone.
- Set Pricing: There is typically a standard price list for transportation services.
- Liability: Common carriers are responsible for the safety of the transported goods. If goods are damaged or lost during transport, the carrier company is obligated to compensate. However, this responsibility is valid except in some exceptional cases.
- Regulations: Common carriers are regulated by specific laws and rules in most countries. These regulations protect both carriers and consumers.
Importance: Common carriers play a critical role in the global supply chain. The quick, safe, and efficient transport of goods is the lifeblood of the modern economy. Therefore, common carriers are indispensable for the continuity of trade and the competitiveness of businesses.
Contract Carrier
Known as “Contract Carrier”, this refers to firms or individuals offering specialized transportation services to specific customers or businesses. These types of carriers usually operate based on a specific contract for a particular customer or group of customers. This is different from common carriers, as contract carriers only serve customers bound by a contract.
Features:
- Special Contract: Contract carriers offer transportation services based on a special contract, which outlines transport conditions, pricing, and other conditions.
- Flexibility: Contract carriers can offer flexible services tailored to specific customer needs.
- Limited Customer Base: Contract carriers usually serve a specific group of customers and are not open to the general public.
- Reliability: The special contract with the customer ensures the continuity and reliability of transportation services.
Importance: Contract carriers are ideal for businesses with unique logistic needs. They play a critical role, especially for large companies, manufacturers, or retailers with specific transportation and delivery requirements. Specialized transport contracts tailored to specific needs and demands ensure seamless and efficient business operations.
Differences Between Contract Carrier and Common Carrier
- Scope of Service:
- Contract Carrier: Provides specialized transportation services to specific customers or businesses.
- Common Carrier: Provides public transportation services, obligated to serve everyone equally.
- Customer Relationship:
- Contract Carrier: Serves based on a special contract with specific customers.
- Common Carrier: Obligated to provide equal service to every customer.
- Pricing:
- Contract Carrier: Pricing is typically determined by a special contract with the customer.
- Common Carrier: Typically operates with a standard price list.
- Flexibility:
- Contract Carrier: Can offer customized services tailored to specific customer needs.
- Common Carrier: Typically has limited flexibility, with standardized services.
- Liability:
- Contract Carrier: Liability for the safety of transported goods might be determined by the terms of the contract.
- Common Carrier: Generally responsible for the safety of transported goods, except in some exceptional cases.
- Customer Base:
- Contract Carrier: Serves a limited and specialized customer base.
- Common Carrier: Serves a wide and diverse customer base.
