Common Carrier
A common carrier is an individual or company that can be hired by public to transport people or products from one place to another.
Updated: November 21, 2023
A common carrier is an individual or company that can be hired by public to transport people or products from one place to another. Railroads, garbage trucks, and buses are included in common carriers. Although, common carrier primarily refers to transportation services, it can also describe telecommunication providers and utility companies.
Transportation management systems are used by common carriers to optimize their logistics operations in the complex supply chain. Fleet tracking features are offered by this management software and it also monitors shipping and delivery status.
Common carriers can operate across land, air, and water. The term common carrier also applies to telecommunication companies and some utility providers in addition to these three main usages as they transport public services from one place to another for a fee.
Common carriers must meet four criteria, which include offering services publicly, transporting people or goods, providing carriage from place to place and charging a fee. Compensation is required by a common carrier to provide services to customers. Services are generally provided to the general public through advertising or the use of an agent or salesperson.
States have the authority to regulate common carriers within their borders in the US while it is regulated by the federal government across state lines. Some common carriers also have to answer to other regulatory bodies. For instance, commercial planes must follow FAA regulations