A contract carrier operates under the logistics and transportation sector as a for-hire entity providing transportation services across state lines (interstate). Unlike common carriers that offer their services to the general public and must treat all customers equally, contract carriers enter into agreements or contracts with specific shippers to transport goods or passengers.

Key Characteristics of Contract Carriers

Selective Clientele: Contract carriers work with a predetermined set of clients as defined by contractual agreements. These agreements specify the terms of service, rates, and obligations of both parties, allowing for tailored transportation solutions based on the unique needs of the shippers.

Customized Services: Due to the nature of their contracts, these carriers can offer specialized services that are optimized for the specific requirements of their clients. This could include handling special commodities, providing dedicated equipment, or adhering to unique scheduling demands.

Regulatory Compliance: As with other types of carriers, contract carriers must comply with all relevant federal and state regulations. This includes maintaining proper licensing and adhering to safety standards as regulated by bodies such as the Federal Motor Carrier Safety Administration (FMCSA) in the United States.

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