Contract Carriage refers to a transportation arrangement in which a carrier provides services to a specific shipper or a limited number of shippers based on a contractual agreement outlining the terms and conditions of the service.
In Contract Carriage, the carrier enters into a formal agreement with the shipper, detailing the scope of services, rates, responsibilities, and duration of the contract. This type of carriage is tailored to meet the specific needs of the shipper, offering more predictable and customized logistics solutions. The contract typically includes provisions for dedicated equipment, scheduled services, and performance standards. This arrangement provides shippers with stability and reliability, as they can secure capacity and service commitments from the carrier. For the carrier, it ensures a steady stream of business and allows for better resource planning and allocation. Contract Carriage is commonly used in industries where consistent and dependable transportation is critical to maintaining supply chain efficiency.
Contract Carriage