Carrier

In logistics, a carrier is any company or individual that physically transports goods from one location to another. Carriers operate across every mode of transportation: ocean vessels, aircraft, trucks, rail cars, and even pipeline systems. The term applies equally to a global container shipping line like Maersk and to a single-truck owner-operator hauling pallets between a warehouse and an Amazon fulfillment center. Understanding the different types of carriers and how they operate is fundamental to managing freight costs and delivery timelines.

Types of Carriers

Ocean carriers operate container vessels on fixed schedules along established trade lanes. Major ocean carriers include Maersk, MSC, CMA CGM, COSCO, and Hapag-Lloyd. These companies are organized into alliances (2M, Ocean Alliance, THE Alliance) that share vessel capacity on key routes. An ocean carrier’s service covers port to port, and the shipper or freight forwarder arranges inland transportation on both ends.

Air carriers transport freight in the cargo holds of passenger aircraft or on dedicated freighter planes. Companies like FedEx, UPS Airlines, and DHL Aviation operate freighter fleets, while passenger airlines such as Emirates SkyCargo, Cathay Pacific Cargo, and Korean Air Cargo sell belly space. Air freight is priced per kilogram and is used for high-value, time-sensitive, or lightweight goods.

Motor carriers (trucking companies) handle the majority of domestic freight movement in the U.S. The trucking industry is divided into truckload (TL) carriers, which dedicate an entire trailer to one shipper’s freight, and less-than-truckload (LTL) carriers, which consolidate shipments from multiple shippers onto a single trailer. Major LTL carriers include FedEx Freight, XPO, and Old Dominion. Truckload carriers range from large fleets like J.B. Hunt and Schneider to thousands of small fleet and owner-operator businesses.

Rail carriers in the U.S. are dominated by Class I railroads: BNSF, Union Pacific, CSX, and Norfolk Southern. Rail is cost-effective for long-haul, high-volume, and heavy freight. Intermodal rail (containers or trailers on flatcars) competes directly with trucking on lanes over 750 miles.

Carrier Selection Factors

Choosing the right carrier depends on the shipment’s characteristics and the shipper’s priorities. Key factors include:

Transit time. Air carriers deliver in 1 to 5 days internationally. Ocean carriers require 14 to 40 days depending on the route. Domestic trucking ranges from same-day to 5 days for cross-country shipments.

Cost. Ocean freight is the cheapest per unit, typically $0.03 to $0.10 per kilogram for a full container. Air freight runs $3 to $8 per kilogram. Trucking falls in between, priced by mile, weight, or flat rate depending on the service type.

Reliability. Schedule reliability varies by carrier and mode. Ocean carrier schedule reliability has ranged from 35% to 70% in recent years, meaning vessels frequently arrive late. Trucking reliability is generally higher, with most LTL carriers meeting published transit times 85% to 95% of the time.

Cargo requirements. Temperature-controlled goods require reefer carriers. Oversized freight needs flatbed or specialized equipment. Dangerous goods require carriers with proper hazmat certifications.

Carrier Liability

Carrier liability varies by mode and governing law. Domestic motor carriers are liable under the Carmack Amendment. Ocean carriers’ liability is governed by the Carriage of Goods by Sea Act (COGSA), which limits liability to $500 per package unless a higher value is declared. Air carriers operating internationally fall under the Montreal Convention. These liability limits rarely cover the full commercial value of the freight, which is why shippers purchase cargo insurance separately.

Working with Carriers as an FBA Seller

Most FBA sellers interact with carriers indirectly, booking through freight forwarders for international shipments and through Amazon’s partnered carrier program or freight brokers for domestic moves. Sellers with higher volumes can negotiate direct contracts with LTL carriers to secure better rates on recurring lanes between prep centers and Amazon fulfillment centers.