Full explanation
A common carrier is a transportation provider that holds itself out to serve the general public for compensation. Unlike contract carriers that serve specific shippers, common carriers have a legal obligation to transport freight for any shipper willing to pay the published rate, provided the cargo falls within the carrier's operational capabilities. This obligation dates back to English common law and is codified in US federal transportation statutes. Common carriers must file their rates and cannot discriminate between shippers offering similar freight. They carry the highest standard of liability for cargo damage — a common carrier is presumed liable for loss or damage unless it can prove the loss resulted from an act of God, act of the public enemy, act of the shipper, public authority, or the inherent nature of the goods. In the modern freight industry, the distinction between common and contract carriers has become less rigid since deregulation in 1980, but the liability standards and service obligations still differ significantly.
Source: Cornell Law: Common Carrier
Frequently asked questions
What is common carrier liability?
Common carriers are held to the highest standard of care for goods in their possession. They are presumed liable for any loss or damage and must prove one of five narrow exceptions to avoid responsibility.
Are most trucking companies common carriers?
Since the Motor Carrier Act of 1980 deregulated the industry, most for-hire carriers operate under common carrier authority, though many also serve contract customers. The practical distinction matters primarily for liability purposes.
Can a common carrier refuse freight?
A common carrier can refuse freight only for legitimate reasons: the cargo exceeds their equipment capacity, the shipper refuses to pay applicable rates, or the shipment poses illegal or unreasonable safety risks.