Transportation Participants
The three basic participants in a transportation system are the shipper, the carrier, and government.
The Shipper
One of the best ways to transport freight is to use shipper services. Shippers can move freights from origin to destination at the lowest cost and during a specified time period.
The shipper ensures many transportation services such as particular pickup and delivery times, accurate and timely exchange of invoicing and information, zero loss and damage, and specified transit times. Some shippers are producers of goods, this is while some others are just intermediary firms (brokers) which attribute demand to supply.
Carrier
Carriers render transportation services. Railways, shipping lines, trucking companies, intermodal container services, and postal services are different kinds of carriers. Generally, carriers are classified into three main classes:
- common carriers,
- private carriers, and
- contract carriers.
Depending on its market, any manufacturer or distributor can choose from these three choices to transport goods and products.
Common Carriers vs Contract Carriers
The best-known common carriers are public airlines, motor carriers, cruise ships, bus lines, railroads, and other freight companies. Common carriers’ routes are defined and published in advance, and rate tables and time schedules for transporting people and goods require the approval of regulators (the government in most countries).
A common carrier is a business that offers its transportation services to the general public under license or the authority provided by a regulator.
A common carrier holds itself out to provide transportation services to the general public without discrimination for “public convenience and necessity.”
A contract carrier, on the other hand, is a kind of for-hire carrier agent that serves a limited number of shippers under specific contractual arrangements.
According to contract, they provide a specified transportation service at specified cost; contract carriers are the same as private carriers except they do not serve the general public and in most instances have contract rates that are lower than those of common carriers.
Government
In most countries, public transportation systems and facilities such as rail facilities, roads, and ports are planned, constructed, and operated by governments. Governments also control the shipment of certain items (e.g., hazardous and poisonous products) and tax the transportation industry.
Governments have traditionally been more involved in the practices of carriers than in most other commercial enterprises; their regulations include restricting carriers to certain markets and regulating prices they can charge.
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