What is contract carrier?

Author

Jessica Burns

Published Mar 13, 2026

What is contract carrier?

Share. A legal entity providing for-hire transportation of people or goods to its customers on a contract basis.

Also, what is difference between common carrier and contract carrier?

Common carriers provide for-hire truck transportation to the general public. Contract carriers provide for-hire truck transportation to specific, individual shippers, based on contracts. Contract carriers must file only liability (BI & PD) insurance.

Beside above, is UPS a contract carrier? d/b/a UPS Freight, holds operating authority as a motor common carrier, a motor contract carrier and as a motor transportation broker with a federal registration number of MC-109533. Moreover, even a cursory review of the UPS and FedEx websites reveals that they offer a myriad of other services.

Subsequently, one may also ask, what does carrier has contracted mean?

Contract Carrier — a commercial individual or organization carrying persons or property of certain customers only, rather than the goods of or the public in general. Unlike a common carrier, a contract carrier has a right to choose or refuse to convey passengers or freight for payment.

What is common or contract authority?

Common authority is for carriers that provide for-hire transportation to the general public. Common carriers must file both liability insurance and cargo insurance. Contract authority is for carriers that provide for-hire transportation to specific individual shippers, based on contracts.

Who is considered a common carrier?

A common carrier is a private or public entity that transports goods or people for a fee. Utility companies and telecommunications companies also are considered common carriers. A common carrier, unlike a private carrier, must provide its service to anyone willing to pay its fee.

How do I become a contract carrier?

Become A Contract Carrier

Provide your MC/MX# or DOT# to begin registration.
Carrier Contact must be authorized to enter into and bind your company to the Transportation Services Contract.
Validate or provide the carrier contact information.
Submit an electronic W9.
Complete the Carrier Profile.
Read and ACCEPT the “Motor Carrier Agreement”.

What are the types of carriers?

The two main types of carriers are common carriers and private carriers. A common carrier, such as a railroad, airline, or business that offers public transportation, customarily transports property and individuals from one location to another, thus offering its services for the hire of the general population.

Is Fedex a common or contract carrier?

Is Fedex common carrier? A common carrier includes companies like FedEx or UPS. Common Carriers include the USPS, UPS, and FEDEX. They handle package shipments for most common applications.

What does common carrier mean in insurance?

Common Carrier — a commercial individual or organization that carries persons or property from one place to another for payment—for example, a trucker. As contrasted with contract carriers, a common carrier is one that transports or handles the goods of the general public.

What is an example of a common carrier?

Public airlines, railroads, bus lines, taxicab companies, phone companies, internet service providers, cruise ships, motor carriers (i.e., canal operating companies, trucking companies), and other freight companies generally operate as common carriers.

What is Household Goods Carrier?

Definition of "Household Goods Carrier (HGC)": According to the California Public Utilities Code Section 5109, "household goods carrier" includes every "corporation or person engaged in the transportation for compensation or hire as a business by means of a motor vehicle or motor vehicles being used in the

Is a moving company a common carrier?

Common carrier refers to a person or entity in the business of transporting goods or people for hire, as a public service. For example, city buses are a common carrier, as opposed to a private carrier such as a moving company which is hired on a one-time basis.

What means private carrier?

Private carrier refers to a company that owns the vehicles used to transport its own goods. In this sense, a private carrier is not a for-hire carrier and does not carry the goods of other companies as its primary business.

Is USPS a common carrier?

A common carrier provides services to any and all companies between predetermined points on a scheduled basis. The U.S. Postal Service is a common carrier, as are FedEx and the Amtrak railway system.

What is common carrier shipping?

A common carrier serves both commercial and residential shippers and generally operates as a motor carrier or trucking company or freight company. Common carriers have the ability to transport LTL, full or partial truckloads and intermodal freight.

What type of carrier is UPS?

The UPS Terms and Conditions of Carriage, states, “UPS is not a common carrier and reserves the right in its absolute discretion to refuse carriage to any shipment tendered to it for transportation”.

Is UPS federally regulated?

Whether it's domestic or international shipping, UPS continues to be an authorized federal government shipping provider for the U.S. Government. What does that mean for you? So when you're shipping with UPS, you can be confident that you're always running the tightest operation possible.

Is FedEx federally regulated?

FedEx Ground is a federally regulated motor carrier that specializes in small package information, transportation, pickup and delivery, and provides services to the United States and Canada.

What is the difference between DOT and MC number?

What is the difference between an MC number and a US DOT number? A US DOT number identifies carriers operating in interstate commerce while an MC number identifies a carrier who transports regulated commodities for hire in interstate commerce.

Do I need MC number for intrastate?

Do I Need an MC Number for Intrastate Commerce? As a general rule, you do not need your operating authority for intrastate commerce. You only need your DOT Number.

What is a intrastate carrier number?

Companies that operate commercial vehicles transporting passengers or hauling cargo in interstate commerce must be registered with the FMCSA and must have a USDOT Number. Also, commercial intrastate hazardous materials carriers who haul types and quantities requiring a safety permit must register for a USDOT Number.

What is interstate authority?

Interstate Operating Authority is authority granted by the Federal Motor Carrier Safety Administration (FMCSA) to allow your trucking company to work for-hire across state or national borders.

What is a broker authority?

A Broker Authority is a license issued and granted by the FMCSA (Federal Motor Carrier Safety Administration) that allows a company to arrange the transportation of cargo belonging to others by using for-hire carriers to provide the actual transportation of the cargo.

Can a motor carrier broker freight?

No. A motor carrier cannot broker loads without first applying for and receiving a license to operate as a property broker.

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