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(BAB 4) LEGAL CLASSIFICATIONS OF CARRIERS - Coggle Diagram
(BAB 4) LEGAL CLASSIFICATIONS OF CARRIERS
COMMON CARRIERS
Is a person or company that transports goods or people for any person or company and that is responsible for any possible loss of the goods during transport.
Common carriers typically transport persons or goods according to defined and published routes, time schedules , and rate tables upon the approval of regulators.
A significant problem common carriers face is that they cannot predict the number of customers with certainly in advanced, and thus future demand is uncertain.
Exceptions to liability include acts of god, acts of the public enemy, acts of public authority, acts of the shipper defects inherent in the goods.
CONTRACT CARRIERS
For-hire carrier that does not have to serve the general public.
Serves a limited number of shipper under specific contractual arrangements.
An advantage is that the carrier knows the transport demand in advance.
Becoming more popular as logistics managers use contract carriage to assure rates and service levels.
EXEMPT CARRIERS
For-hire carrier that transports certain products such as unprocessed agriculture. products and related goods such as farm supplies livestock, fish, poultry and seeds.
Carriers of newspapers are also given exempt status.
The exempt status was originally established to allow farmers to transport their products using public roads.
Generally exempt carrier rates are lower than common or contract carrier rates.
PRIVATE CARRIERS
Private carriage is the firm's own transportation.
With private carriage the firm is primarily providing transportation for its own products.
Firms gain ultimate control over shipments and achieve maximum flexibility in moving goods.
Requires management time and expertise.