What Is Contract Carrier?

3PL Glossary
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Contract Carrier

Contract Carrier Definition

A Contract Carrier is a transportation provider that enters into an agreement with a specific company to provide dedicated shipping services under a contract, rather than offering services to the general public.

Contract Carrier Meaning

A Contract Carrier operates on the basis of a formal, long-term agreement with a specific shipper or group of shippers. These carriers are responsible for transporting goods between predetermined locations, usually offering specialized or exclusive services for the contracted business. Unlike common carriers, contract carriers do not serve the general public but instead focus on fulfilling the needs of specific clients.

Contract Carriers work by establishing long-term agreements with businesses to meet their transportation needs on a regular basis. These carriers can provide dedicated fleets, customized shipping solutions, and specialized services tailored to the client’s logistics requirements.

For your business, using a Contract Carrier can result in more predictable shipping costs, greater control over delivery times, and the ability to meet specific operational demands more effectively.

What We Do

Our Solutions

Buske Logistics is a Top 40 3PL with over 35 warehouses across North America, specializing in warehousing, transportation, and value-added services. We provide tailored logistics solutions serving major Fortune 500 companies.

Contract Carriers are essential for businesses that require tailored transportation solutions to meet specific logistical needs. By entering into a contract, companies gain reliable, consistent, and cost-effective transportation services that can be customized to their requirements, such as guaranteed delivery times or specific handling needs. This helps companies maintain control over their supply chain operations, ensuring they meet customer demands efficiently.

For example, a company that manufactures high-end electronics may opt for a Contract Carrier to ensure that their delicate products are handled with care, and deliveries are made on time. This customized approach can help prevent damage, reduce costs, and improve overall service quality.

FAQs

How is a Contract Carrier different from a Common Carrier?
Can a business change their Contract Carrier once the agreement is in place?
What types of businesses benefit most from using a Contract Carrier?