Common Carrier
A common carrier is a public or private company that offers transportation services to the general public. These services may be for the transportation of cargo or people. Common carriers serve their customers at a specified rate, provided there is available capacity, and are responsible for any losses or damage to cargo during transportation.
Common carriers are required to treat all customers equally, and therefore cannot refuse service without a valid reason if there is available capacity. This differs from private carriers, which serve specific clients they have partnered with on a contractual basis and can refuse to serve shippers outside of agreed contracts. The term private carrier may also refer to a business that utilizes its own in-house fleet to transport cargo.
Businesses classified as common carriers include:
- Trucking companies
- Rail freight service providers
- Air freight service providers
- Couriers
- Ocean carriers
Because common carriers provide essential services to the public, often with little to no competition, they are subject to greater government scrutiny and regulation than other businesses. Some states require common carriers to obtain permits before operating.