Contract Carriers Key Terms

Use contacts carriers key terms to maximize opportunities in business transactions

When a shipper contracts with a carrier that works for hire, the two parties negotiate terms until they come to an agreement. Knowing contract carriers key terms helps both the shipper and the carrier decide on the terms for the agreement.

Since regulated common carriers transport general commodities, which are regulated by the ICC, it's important for you to understand contract carriers key terms. This helps open clear communication between shippers and carriers in product transportation.

Commodity

A commodity is a movable good, man-made or natural, offered for sale on the general market. Contract carriers arrange for shipment of commodities from one place to another.

Interstate Commerce Commission

The Interstate Commerce Commission (ICC) sets rates and supervises carriers as they transport people and goods. The ICC is an independent federal agency.

Ad hoc

Ad hoc is a Latin phrase meaning improvised or impromptu. Contract carriers use this term to refer to transportation agreements that don't include a long-term contract.

Fixed route

Transit services frequently run vehicles on a pre-designated, regular route. Contract carriers call this a fixed route.
Wisconsin Department of Transportation offers a list of fees on its website, including fees for contract carriers. It covers local carriage carriers, as well as fixed-route carriers.

Irregular route carrier

An irregular route carrier uses roads not specific to any particular highway or a route not adhering to a particular schedule.

Substituted service

Contract carriers sometimes work with a third-party carrier or an independent contractor. When they use this type of assistance in the industry, it's a substituted service.

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