What are the terms relating to the parties involved in the transportation of cargo?

When filing an interstate cargo claim, do you know everything there is to know? To start, it may help to understand where you fall under the umbrella of transportation. It’s important to understand the difference between terms like common carrier, motor carrier, private motor carrier, and more. When you run a trucking business that deals with transporting cargo in vehicles, it’s important not only have transportation  insurance, but also the information you need. So what is the difference between types of carriers? Let’s take a look:

Broker: A broker is a person, other than the motor carrier or employee of a motor carrier, that sells or negotiates for providing transportation by motor carrier for compensation.

Carrier or common carrier: A carrier is defined as a “motor carrier, water carrier and a freight forwarder.” The ICC Termination Act deleted all references to “common carrier,” which is one that holds itself out to public as ready to carry goods for anyone who requests its services as distinguished from a private carrier.

Motor carrier: A motor carrier is defined as a person providing commercial motor vehicle transportation for compensation.

Private motor carrier: A private motor carrier is defined as a person, other than the motor carrier, transporting property by commercial vehicle in interstate or foreign commerce when the person is the owner, lessee, or bailee of the property being transported, and the property is being transported for sale, lease, rent or bailment or to further a commercial enterprise.

Consignee: A consignee is the person named in a bill of lading as the person to whom the goods are being delivered to.

Consignor: On the other hand, a “consignor” is the person named in a bill of lading from whom the goods have been received for shipment.

Freight forwarder: According to the Interstate Commerce Act, a freight forwarder is a “person holding itself out to the general public to provide transportation of property for compensation and in the ordinary course its business assembles and consolidates shipments; assumes responsibility for the transportation from the place of receipt to the place of destination; and uses for any part of the transportation a carrier subject to the jurisdiction.”

At Wolpert Insurance & Risk Management, we know that not everything is so black and white when it comes to truckers and transportation companies. We want to make sure you’re getting all the info you need, so please feel free to call us today. We’d love to speak with you!