Private carrier
Encyclopedia
A private carrier is a company that transports only their own goods. Usually the carrier's primary business is not transportation but rather something else. For example, the Wegmans grocery store chain owns and operates their own private fleet to deliver produce and goods to their stores. Wegmans' primary business is not transportation but grocery retail; therefore the Wegmans fleet is a private carrier. Other corporations with private fleets include Bridgestone-Firestone, Toyota, Ace Hardware
, and Archer Daniels Midland
. For more information about private fleets, see the U.S. association representing private motor truck fleets founded in 1939, the National Private Truck Council (see link below).
A private carrier is distinguished from a common carrier
whose primary business is the transport of goods, and which is in business to serve any customers that hire them, such as buses, railroads, trucking companies, airlines and taxis. Private carriers may refuse to sell their services at their own discretion, whereas common carriers must treat all customers equally. Yellow Transportation and FedEx
are examples of common motor carriers.
It is also distinguished from an independent carrier, which is an individual owner-operator or trucker who may make deals with private carriers, common carriers, contract carriers, or others as he or she wishes.
Although establishing and operating a private fleet is a substantial expense, it is warranted when customer service is paramount. Common carriers require shipment from fixed points while private carriers can set up any pickup or drop-off points desired. Some corporations mix both systems, using common carriers where possible and supplementing with private carriage (called a blended operation).
Private carriage usually refers to trucking, but is also found in rail and water transportation. Private rail carriers include the Black Mesa and Lake Powell Railroad in Arizona.
Beyond physical transportation, private carrier may also refer to communication or communication services. Certain frequencies which are restricted to use by law enforcement are sometimes called "private carriers" -- station class codes beginning with FB6 or FB7 are private carriers. In the telecommunications industry, defining "private carrier" and "common carrier" has become increasingly difficult with the growth of mobile phone
service providers, VOIP, and other non-traditional means of delivering communication services.
Ace Hardware
Ace Hardware Corporation is a hardware cooperative based in Oak Brook, Illinois, United States. ACE Hardware Corporation, with 4,444 stores, does over $3 billion in retail hardware sales annually down from its peak of $12.5 billion in 2007.-History:...
, and Archer Daniels Midland
Archer Daniels Midland
The Archer Daniels Midland Company is a conglomerate headquartered in Decatur, Illinois. ADM operates more than 270 plants worldwide, where cereal grains and oilseeds are processed into products used in food, beverage, nutraceutical, industrial and animal feed markets worldwide.ADM was named the...
. For more information about private fleets, see the U.S. association representing private motor truck fleets founded in 1939, the National Private Truck Council (see link below).
A private carrier is distinguished from a common carrier
Common carrier
A common carrier in common-law countries is a person or company that transports goods or people for any person or company and that is responsible for any possible loss of the goods during transport...
whose primary business is the transport of goods, and which is in business to serve any customers that hire them, such as buses, railroads, trucking companies, airlines and taxis. Private carriers may refuse to sell their services at their own discretion, whereas common carriers must treat all customers equally. Yellow Transportation and FedEx
FedEx
FedEx Corporation , originally known as FDX Corporation, is a logistics services company, based in the United States with headquarters in Memphis, Tennessee...
are examples of common motor carriers.
It is also distinguished from an independent carrier, which is an individual owner-operator or trucker who may make deals with private carriers, common carriers, contract carriers, or others as he or she wishes.
Although establishing and operating a private fleet is a substantial expense, it is warranted when customer service is paramount. Common carriers require shipment from fixed points while private carriers can set up any pickup or drop-off points desired. Some corporations mix both systems, using common carriers where possible and supplementing with private carriage (called a blended operation).
Private carriage usually refers to trucking, but is also found in rail and water transportation. Private rail carriers include the Black Mesa and Lake Powell Railroad in Arizona.
Beyond physical transportation, private carrier may also refer to communication or communication services. Certain frequencies which are restricted to use by law enforcement are sometimes called "private carriers" -- station class codes beginning with FB6 or FB7 are private carriers. In the telecommunications industry, defining "private carrier" and "common carrier" has become increasingly difficult with the growth of mobile phone
Mobile phone
A mobile phone is a device which can make and receive telephone calls over a radio link whilst moving around a wide geographic area. It does so by connecting to a cellular network provided by a mobile network operator...
service providers, VOIP, and other non-traditional means of delivering communication services.
External links
- National Private Truck Council (business association representing private motor truck fleets)
- American Trucking Association private carrier application (pdf format, requires Adobe Acrobat Reader]
- Articles and press releases for top private carrier companies in the United States
- Blurring of lines between private carriers and common carriers (communication)
- Designing a private fleet
- FCC station class codes
- Sample state trucking association private carrier membership application