When you need any goods, you need a company or person in charge of the transportation. This in charge is called a logistics carrier.

The Role Of A Logistics Carrier:

The logistics carrier is legally hired for transporting goods from one place to another. They are also called freight carriers sometimes. They deal in multi-modal logistics services so that clients get goods faster. Usually, goods are transported via land, air, or sea.

Carriers have distinct ways in which they operate. Depending on their services, they are classified into four different categories. Let’s see each in a bit of detail.

Common Carriers:

These types of carriers cater to the shipping needs of the public. They can manage logistics operations for an individual or a company. The typical carriers have lower rates as their ability to set rates is limited. These carriers deal with it all, from manufacturing to delivering goods to the end customer.

Contract Carriers:

Contract carriers only work with a few selected shippers with whom they’re in contract. These carriers have set freight rates in the agreement. The period for which the contract is made is also essential. This is the time frame during which the carriers will manage logistics for their designated clients. The contract carriers are only bound to a set group of shippers. They can’t take on any new business whenever they want.

Local, Regional, And National Logistic Carriers:

In the U.S., local carriers are the most common. They account for almost 60% of all land carriers. These carriers provide their services for limited areas, typically within a 100-mile area. 

Regional carriers have more coverage as compared to local carriers. National carriers ship cargo across the country. They usually work with huge businesses.

Private Carriers:

Private carriers move freight on shippers’ vehicles. They don’t charge any additional fees.   

How To Choose The Perfect Logistics Carrier?

If you’re looking for more personalized services, you should go for smaller logistics carriers. Large carriers offer more capacity, better vehicles, and technology. They also provide your business with a bit more flexibility.

You need to keep in mind your business needs, area of transportation, volume, and type of goods. These factors will help you decide which logistics carrier is an ideal option for you.

Also, check the reliability, compliance, and experience of the carrier you’re choosing. Before making a final destination, ask yourself these three critical questions.

• Is the cost of the logistics within my budget?
• Does the carrier have appropriate equipment for my freight?
• Are they licensed and comply with FMCSA regulations?

FAQs

Q- What are the four different types of freight transportation?

There are four significant types of freight transportation. The primary ones are by road, railways, sea, and air. Although these are the principal categories of freight transportation, each method has its own processes that are different.

Q- Difference between a Common carrier and Freight forwarder?

A common carrier is a company that transports goods on fixed routes and set rates. A freight forwarder is a person that sets up shipments for individuals or corporations to get goods from origin to destination. The forwarders usually contract with a carrier to move the goods.

Also Read: 5 Tips For Effective Cold Chain Logistics