Shipper & Carrier Agreement vs Contract: What’s the Difference? » Sifted (2024)

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Shipper & Carrier Agreement vs Contract: What’s the Difference? » Sifted? ›

And most shippers are surprised to learn that their deal with their carrier is not a contract at all — it's an agreement. What's the difference? An agreement is less formal and binding — both of you can make changes at any time. A contract has locked-in terms, start and end dates, and other commitments.

A bill of lading is a legal document issued by a carrier to a shipper that details the type, quantity, and destination of the goods being carried. A bill of lading is a document of title, a receipt for shipped goods, and a contract between a carrier and a shipper.

As a common carrier, they transfer both goods and services for anyone who is willing to pay the fee. As a contract carrier, they are working with specific companies to transfer specific goods or services at an agreed upon price or discount for a specific period of time.

A carrier contract is a legal binding agreement between carrier and a dispatcher that outlines the terms and conditions of their business relationship in the context of transportation operations.

Shipper is the person or company who is usually the supplier or owner of commodities shipped. Also called Consignor. Carrier 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.

A Bill of Lading is a legal document between a shipper and a carrier that specifies the type, quantity, and destination of the goods being carried. The bill is also a shipment receipt when the courier delivers goods at the predetermined goal.

A private carrier, also called a contract carrier, is one that undertakes by special agreement, in a particular instance only, to transport persons or property from one place to another.

An independent contractor is a driver with a contractual relationship with a carrier, or a company that transports freight. The carrier guarantees work for the driver and provides them with necessities for transport, such as liability insurance, a toll pass and the right to operate a commercial vehicle.

The person who is assigned to perform the carriage, partially or wholly, is considered to be the actual carrier. [1] In such case, the carrier who assigned the carriage is considered to be the contracting carrier.

What is a common carrier agreement? ›

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, unless it has grounds for refusal.

A common carrier is able to work with multiple shippers to fulfill the duty they have to their customers. Contract carriers work under contract with specific shippers. The shippers can work via air or water, but the carrier is only restricted to work with one shipper as they are in a long-term contract.

Their main differences are that common carriers offer their services to the general public, contract carriers offer their services to organizations they are under contract with, and private carriers offer their services to themselves. What is the best type of carrier to have your vehicle shipped with?

A contract of carriage is a negotiated contract not subject to a tariff that is between the carrier and shipper for the transportation of cargo. The written contract between a shipper and carrier sets forth the terms, conditions, and obligations of each party with respect to the carriage of the particular goods.

SOC stands for 'shipper-owned container' and is a metal freight shipping container that is owned by an individual or business and used to ship cargo across long distances. A COC, or carrier-owned container, is a cargo container that is owned by a carrier company and is rented out to various consignees.

The shipper/carrier relationship is unique. The carrier acts as a conduit, fundamentally an intermediary, responsible for handling the shippers' goods with care and delivering them on time and without exception. Those goods might be going to the shipper's own locations or to a third party.

An air waybill is a type of contract used for air cargo transportation. It is a non-negotiable transport document that covers the transport of cargo from airport to airport. It is specific to named organizations (the freight forwarder and the shipper/airline) and cannot be transferred to other parties.

In shipping, a charter is the name given to the contract / agreement between a shipowner (who owns the vessel) and a charterer (who hires the vessel) regarding the use of that vessel for a specific time period or specific voyage.

A freight forwarder, forwarder, or forwarding agent is an intermediary between the shipper and the carrier, typically on international shipments. Freight forwarders provide the ability to respond quickly and efficiently to changing customer and consumer demands and international shipping (import/export) requirements.