Carrier

A carrier is a company or individual responsible for transporting goods from one location to another.

Examples: UPS, FedEx, and Maersk are well-known global carriers. A regional trucking company operating 50 trucks is also a carrier.

Advantages: Carriers provide shippers with capacity, industry expertise, and reliable delivery of goods.

Challenges: Carrier availability fluctuates with demand. Rates often increase during peak seasons, and service quality varies widely.

Real-world example: During the 2020 supply chain crunch, carriers like FedEx imposed surcharges to manage capacity constraints.

Explain like I’m five: A carrier is like a school bus for packages — it picks them up and takes them where they need to go.

FAQ: What’s the difference between a carrier and a broker? A carrier owns the equipment used to move freight, while a broker arranges transportation through third parties.

Bottom line: Carriers are essential to logistics, but shippers often balance multiple carriers and brokers to ensure reliability and control costs.