« Back to Dictionary Index

Authorized Carrier

Definition: An Authorized Carrier is an individual or company that has been granted official permission by the Interstate Commerce Commission (ICC) to transport goods. This authorization allows them to operate as either a common carrier or a contract carrier.

Key Aspects

  1. Types of Carriers:
  • Common Carrier: A carrier that offers its services to the general public for the transportation of goods. They are obligated to provide service to all shippers under established regulations and tariffs.
  • Contract Carrier: A carrier that provides transportation services under specific contracts with individual shippers. They are not required to serve the general public but must adhere to the terms of their contracts.
  1. Authorization Process:
  • ICC Approval: To become an authorized carrier, a company or individual must apply to the ICC (or its successor agency, such as the Federal Motor Carrier Safety Administration, FMCSA, for transportation in the United States) and meet regulatory requirements.
  • Regulatory Compliance: Authorized carriers must comply with various regulations, including safety standards, financial responsibility, and operational guidelines set forth by the ICC.
  1. Responsibilities:
  • Service Provision: Provide reliable and efficient transportation services as per the terms of their authorization.
  • Regulatory Adherence: Maintain compliance with regulations related to safety, tariffs, and operational standards.
  • Insurance: Carry appropriate insurance to cover potential liabilities and ensure the protection of goods in transit.
  1. Benefits of Authorization:
  • Legal Operation: Legally authorized to operate as a carrier, avoiding legal issues and penalties.
  • Market Access: Access to transport goods across various regions as permitted by their authorization.
  • Reputation: Certification as an authorized carrier can enhance credibility and attract business.

Summary

An Authorized Carrier is a person or company permitted by the ICC to transport goods either as a common or contract carrier. This authorization ensures that carriers meet regulatory standards and provides them with the legal and operational framework to offer transportation services to their clients.

« Back to Dictionary Index