Contract Carrier :
– law / shipping
An individual or legal entity that is in the business of transporting passengers or goods for hire. Shipping lines, airlines, trucking companies, and railroad companies are all carriers.
Note : The worldwide acceptance of Incoterms 1990 (and now Incoterms 2000) has resulted in an expanded defini¬tion of carrier. In the older and more limited definition, only shipping lines, airlines, trucking companies and rail¬road companies are carriers. However, the significant in¬crease in multimodal transport and integrated logistics has placed freight forwarders into the position of carrier. In the definition above, a freight forwarder is a legal entity that is in the business of transporting goods.
The ICC (International Chamber of Commerce) has estab¬lished the following definition.
(ICC definition) Carrier means any person who, in a con¬tract of carriage, undertakes to perform or to procure the performance of transport by rail, road, air, sea, inland wa¬terway or by combination of such modes.” Within the con¬text of this definition, when a buyer nominates a freight forwarder to receive the goods, such as in the FCA (Free Carrier) Incoterm, the seller fulfills his obligation to de¬liver the goods by delivering to that person.
(1) A common carrier is one that by law must convey passengers or goods without refusal, provided the party re¬questing conveyance has paid the charge for transport.
Private or Contract Carrier
(2) A private or contract carrier is one that transports only those persons or goods that it selects.
(U.S. shipping) By U.S. government regulation a common carrier publishes stated rates for carriage and must accept any passengers or goods for transport so long as space is available and the published rate is paid.
Carrier Initiative Program
- United States
A U.S. Customs and Border Protection (CBP) program established in 1984, as a joint effort among air, sea, land and rail carriers and CBP to address the prob¬lem of drug smuggling and terrorism in the United States on board commercial conveyances. By signing the CIP agree¬ment with CBP, carriers agree to enhance their security at foreign and domestic terminals as well as on board their conveyances. Additionally, they agree to cooperate closely with CBP in identifying and reporting attempted or sus¬pected smuggling attempts or other criminal activity. In re¬turn, the Customs Service agrees to conduct both domestic and foreign security site surveys, post-seizure analysis, and provide training to identify security weaknesses within their company and suggests improvements to better their security systems and measures. The CIP is one of the CBP Industry Partnership Programs (IPP). For more information contact the CBP Industry Partnership Programs at  (202) 927- 0520
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