Common Carrier: Carrier for Hire who Transports People or Goods as a Public Utility

In-depth exploration of Common Carriers, their history, types, legal definitions, and role in transportation.

A common carrier is an individual or business that advertises to the public the availability for hire to transport property or passengers. Common carriers, operating under public utility regulations, provide transportation services to the general public on a regular and continuous basis.

Legal Definition

Under the law, a common carrier holds itself out to provide transportation services to anyone willing to pay the fee. The carrier is responsible for the goods or passengers during their transportation, subject to specific regulations and liabilities.

Historical Context

The concept of common carriers dates back to the 17th and 18th centuries, emerging prominently with the development of railways and maritime shipping. They played a crucial role in industrial revolutions, enhancing trade and economic growth by ensuring the reliable transport of goods and people.

Types of Common Carriers

Passenger Carriers

Passenger carriers transport people and include entities such as airlines, bus lines, railroads, and ferries. These carriers are obligated to serve all passengers without discrimination, subject to safety regulations.

Goods Carriers

Goods carriers transport various types of freight, ranging from small packages to large cargo shipments. Examples include trucking companies, shipping lines, and freight airlines.

Liabilities and Responsibilities

Common carriers have a higher standard of care towards their passengers and cargo. They are liable for any loss, damage, or injury that occurs during transportation unless they can prove that the loss was due to an act of God, an act of the public enemy, the shipper’s fault, or the inherent nature of the goods.

Regulatory Framework

Different countries have specific regulations governing the operations of common carriers. In the United States, the Federal Communications Commission (FCC) and the Department of Transportation (DOT) are among the authorities that regulate common carriers. In the European Union, regulations are established by the European Commission to ensure fair competition and protection.

Examples and Case Studies

Case Study: United Airlines

United Airlines, as a common carrier, provides transportation services to passengers worldwide. It operates under stringent safety regulations and customer service commitments stipulated by the Department of Transportation.

Case Study: FedEx

FedEx, primarily a goods carrier, operates an extensive logistic network globally. It ensures the timely and safe delivery of packages while adhering to international shipping and transportation regulations.

Importance in Modern Economy

Common carriers are paramount to the functioning of the global economy. They facilitate trade, help in the movement of labor, and ensure the accessibility of remote areas, thereby supporting economic and social development.

Comparisons with Private Carriers

Unlike common carriers, private carriers offer transportation services to specific clients under negotiated contracts. They are not obligated to serve the public at large and have more flexibility in setting terms and conditions.

Related Terms

• Private Carrier: A carrier that transports goods or passengers under individual contracts or agreements with specific clients, not open to the general public.
• Public Utility: An organization that maintains the infrastructure for a public service, often in transportation, energy, or communications.
• Contract Carrier: A carrier that provides transportation services to specific, contracted shippers, as opposed to the general public.

FAQs

What distinguishes a common carrier from a private carrier?

A common carrier must provide services to the general public under predetermined rates and conditions, while a private carrier serves specific clients based on contractual agreements.

What regulations do common carriers follow?

Common carriers follow industry-specific regulations enforced by governmental bodies such as the DOT and FCC in the U.S., ensuring safety, reliability, and fair service.

How are common carriers liable for the goods they transport?

Common carriers are generally held to a high standard of care and are liable for any damage or loss unless it falls under specific exceptions like act of God or inherent nature of the goods.

References

1. United States Department of Transportation. “Regulations and Guidelines for Common Carriers.”
2. European Commission. “EU Regulations for Transportation and Carriers.”
3. Federal Communications Commission. “Common Carrier Obligations and Statutes.”

Summary

Common carriers, with legal obligations to serve the public affordably, play an essential role in the transportation industry. They maintain higher accountability standards, ensuring the safety and reliability of passenger and goods transport. Through various historical and modern examples, common carriers continue to be a backbone of the global economy, regulated under stringent national and international legislation.