contract carrier
Quick Summary
In law, a contract carrier is a business that transports goods for specific individuals rather than for the general public. This distinguishes them from common carriers, who offer services to anyone. Both contract and common carriers are in the transportation business, but a common carrier holds themselves out to the public, while a contract carrier does not.1
The distinction between these types of carriers has significant legal implications. Contract carriers have more freedom in setting rates and choosing customers compared to common carriers, who face stricter economic regulations and cannot engage in unjust discrimination. While common carriers are liable for any loss or damage to goods unless specific exceptions apply, contract carriers are generally only liable for negligence.1
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