What type of carrier is owned by a shipper for the purpose of transporting its own goods?

What type of carrier is owned by a shipper for the purpose of transporting its own goods?

• A. Public carrier
• B. Contract carrier
• C. Private carrier
• D. Common carrier

Answer: (C)

The type of carrier owned by a shipper specifically for the purpose of transporting its own goods is a private carrier. This setup allows businesses to have direct control over the transportation of their products, ensuring that the logistics align with their operational needs and timelines. Unlike public carriers, which transport goods for anyone for a fee, private carriers operate solely for the owning entity. They typically incur lower costs over time, particularly if they regularly need to transport goods, as they can eliminate reliance on third-party services. This concept is important in logistics and transportation management, as businesses frequently evaluate their shipping needs to decide whether to utilize their own transport resources or to contract with external carriers. Understanding the distinction between private carriers and carriers that are available to others, like common or public carriers, clarifies the various logistical strategies available based on a company’s specific transportation requirements.

The type of carrier owned by a shipper specifically for the purpose of transporting its own goods is a private carrier. This setup allows businesses to have direct control over the transportation of their products, ensuring that the logistics align with their operational needs and timelines. Unlike public carriers, which transport goods for anyone for a fee, private carriers operate solely for the owning entity. They typically incur lower costs over time, particularly if they regularly need to transport goods, as they can eliminate reliance on third-party services.

This concept is important in logistics and transportation management, as businesses frequently evaluate their shipping needs to decide whether to utilize their own transport resources or to contract with external carriers. Understanding the distinction between private carriers and carriers that are available to others, like common or public carriers, clarifies the various logistical strategies available based on a company’s specific transportation requirements.