The logistics industry couldn’t function without common carriers. These carriers are regulated by the government as they transport people and goods for an agreed-upon price. They must provide transportation services as requested and cannot refuse service to anyone who pays the fee.
Several types of common carriers exist, including ships, trains, and airplanes. These carriers play a critical role in the economy today. What should every person know about logistics carriers?
Common Carriers in History
Common carriers grow economies, help with infrastructure development, and have been invaluable in times of war. These same carriers have also been major players in globalization. They have helped shape the world as we know it today, and their influence continues to be seen.
Common Carriers in Logistics Today
Common carriers move goods. They may be contract carriers or private carriers. The government regulates all common carriers to ensure their services are safe and reliable. These carriers allow for the cost-effective transport of goods and provide various services. Anyone who has received a package through FedEx or UPS has interacted with a common carrier.
Trucking companies make up the majority of common carriers today. However, railroads are often used to transport goods over long distances. When goods are needed rapidly, air freight common carriers handle the transport of these goods. In contrast, ocean freight carriers offer a cost-effective alternative for large quantities of goods that must be moved long distances. However, ocean freight common carriers require more time to deliver the goods. Without these common carriers, the supply chain would come to a standstill.
Legal Obligations
Common carriers have legal obligations when transporting goods. They must use a high degree of care and deliver the items promptly. If any goods are lost or damaged during transport, the carrier is liable for this damage. Discrimination is forbidden, so a carrier must work with any client able to pay the fee, and the charges for the carrier’s service must be fair and reasonable.
The Benefits and Drawbacks of Using Common Carriers
Common carriers cover a larger geographical area than private carriers, allowing customers to expand to more areas. In addition, common carriers are more affordable, as they can spread their costs across all customers. Private carriers serve one customer, and that customer must pay all associated fees. Nevertheless, customers have less control and limited flexibility when working with a common carrier. A company must consider this when choosing which type of carrier to use for each cargo load.
Choosing a Common Carrier
When choosing a common carrier, consider several factors. Ensure the carrier is known for being reliable and offers outstanding customer service. The fees charged play a role in the carrier selected, and the carrier must offer the necessary mode of transport. A company with a fleet of flatbed trucks won’t help a client requiring the transportation of perishable goods. Always verify the carrier has adequate insurance coverage before signing a contract, as well.
Many people discounted the importance of common carriers before the global pandemic. They quickly realized at that time just how important these carriers are in today’s global supply chain. With the help of new technologies and partnerships between companies, common carriers will probably remain a critical component of the logistics industry in the coming years. However, environmental concerns must be addressed, and customized services must be offered to meet clients’ demands. Common carriers willing to take these steps and adapt to the changing landscape should thrive in this industry.