Contract carriage is a transportation arrangement in which a carrier agrees to move freight for a specific shipper under a negotiated contract rather than offering the service broadly to the public. The agreement usually sets the service scope, pricing method, and operating expectations for recurring shipments or defined lanes.
How it differs
Unlike common carriage, contract carriage is tailored to one shipper or a limited group of shippers, so the carrier can provide more predictable capacity, handling requirements, and transit planning. The exact obligations depend on the written contract and the transportation mode involved, as well as any applicable tariffs or regulations.
For importers and exporters, contract carriage often matters when freight is steady enough to justify a dedicated rate structure or service commitment. The contract may address pickup windows, equipment needs, accessorial charges, claims procedures, and who is responsible for booking, documentation, and cargo handoff. For example, a manufacturer shipping finished goods weekly to a distribution center may use a contract carrier to secure consistent truck capacity and service terms.
Because the arrangement is contractual, the parties can negotiate responsibilities that are not automatically fixed by public service rules. Still, the carrier remains bound by the contract, applicable law, and any safety or customs requirements that apply to the shipment.