Private carrier

From Wikipedia, the free encyclopedia

A private carrier provides transportation or delivery of goods or services for a single entity, often a corporation; usually that entity'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 General Motors, Toyota, Ace Hardware, and Archer Daniels Midland.

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. Amtrak and Greyhound Lines bus company are examples of common 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 can in the long run reduce costs if the volume is large enough. Common carriers require shipment from fixed points (for example, Greyhound will not pick you up at your house) while private carriers can set up any pickup or dropoff points desired. Some corporations mix both systems, using common carriers where possible and supplementing with private carriage.

Private carriage usually refers to trucking, but is also found in rail and water transportation.

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.