Common Carrier

A common carrier is a transportation company that offers its freight or passenger services to the general public under a standard set of terms and rates. Unlike contract carriers, which negotiate private agreements with specific shippers, common carriers are legally obligated to serve all customers without discrimination, provided the goods are lawful and the carrier has available capacity. In the U.S., common carriers operate under regulations established by the Federal Motor Carrier Safety Administration (FMCSA) for trucking and the Surface Transportation Board (STB) for rail.

Legal Obligations and Liability

Common carriers bear a heightened standard of liability compared to private or contract carriers. Under common law and the Carmack Amendment (for domestic surface transportation), a common carrier is liable for loss, damage, or delay of goods while in its possession, with limited exceptions. Those exceptions include acts of God, acts of war, acts of the shipper, public authority actions, and the inherent nature of the goods themselves (such as perishability).

This strict liability standard means shippers have stronger legal protections when using common carriers. If a truckload of electronics is damaged due to rough handling during transit, the common carrier bears responsibility for the declared value unless it can prove one of the recognized exceptions applies. The carrier’s published tariff or bill of lading typically defines the maximum liability per pound or per shipment.

Common Carrier vs. Contract Carrier

The distinction matters for pricing, service terms, and legal exposure. A contract carrier negotiates individual agreements with shippers, often offering customized pricing, dedicated routes, or specialized equipment. These arrangements are governed by the specific contract rather than a published tariff.

Common carriers publish their rates and service terms, making them accessible to any shipper. Major LTL (Less than Truckload) carriers like FedEx Freight, XPO Logistics, and Estes Express operate as common carriers. They accept freight from any shipper who meets their packaging and classification requirements, applying rates based on freight class, weight, lane, and distance.

In practice, many large carriers operate as both common and contract carriers simultaneously. They maintain published tariff rates for general customers while offering negotiated contract rates to high-volume shippers.

Rate Structures

Common carrier rates are based on several factors. For LTL shipments, the National Motor Freight Classification (NMFC) system assigns a freight class between 50 and 500 based on density, handling characteristics, stowability, and liability. Higher classes carry higher rates. A shipment of lightweight pillows (class 300) costs significantly more per hundredweight than a shipment of steel fittings (class 65).

FTL (Full Truckload) common carrier rates are driven primarily by lane, distance, fuel surcharges, and market conditions. A dry van load from Los Angeles to Chicago might range from $2,200 to $3,800 depending on the season and capacity availability.

Relevance for E-commerce and FBA Sellers

Sellers shipping palletized goods to Amazon fulfillment centers or to 3PL warehouses frequently use common carriers for LTL deliveries. Amazon’s partnered carrier program uses common carriers to offer discounted rates through Seller Central. Outside of that program, sellers can book directly with common carriers or use freight brokers to compare rates.

When choosing a common carrier, sellers should evaluate transit times, terminal locations, claims ratios, and accessorial charges. Accessorial fees for liftgate delivery, inside delivery, limited access locations, or residential delivery can add $50 to $200 per shipment. Verifying that the carrier can deliver to Amazon’s dock requirements (appointments, pallet specifications, labeling) prevents refused deliveries and redelivery charges.

For sellers moving high volumes through prep centers like MeisterPrep, coordinating with common carriers on pickup schedules and dock appointments reduces transit time between the prep facility and the final fulfillment center.