What most people call a
“trucking company” or a “trucker” is a “motor carrier” or
simply, “carrier” in official language. The carrier industry is
regulated by the Federal Motor Carrier Safety Administration (FMCSA)
division of the U.S. Department of Transportation. Those who wish to
learn about the various licensing requirements for a trucking
operation may benefit from knowing some of the official industry
terms.
- Motor carrier (carrier) – a company (individual, partnership, or corporation) that provides transportation using trucks
- Private carrier – a carrier that transports cargo that has been produced, sold, or purchased by the same company which owns the carrier
- For-hire carrier – an independent company that provides transportation for others at a fee
- Freight Forwarder – a company that provides cargo transportation services using for-hire carriers. They are responsible for the cargo from origin to destination.
- Broker – similar to a Freight Forwarder, they also provide transportation for other companies using for-hire carriers. However, they do not assume responsibility for the cargo.
The term “common
carrier” used to refer to for-hire carriers who provided trucking
transportation for anyone using publicly published rates. Meanwhile,
the term “contract carrier” previously referred to for-hire
carriers who provided transportation to specific clients under rates
agreed by both parties. After January 1, 1996, however, the
distinction between a common and a contract carrier has been
nullified. The difference now is that common carriers are required to
carry proof of cargo insurance,
while contract carriers are not.
