The term common carrier is a legal concept associated with the transportation industry. In its most general sense, a common carrier is an individual or business that provides transportation services to members of the public. The service typically involves the firm offering either a single mode of transportation, such as railways or a fleet of trucks, or multiple modes of transportation, such as passenger planes, ships, buses, and other vehicles.
The common carrier is generally required to offer these services to the public, regardless of whether it would be financially beneficial to them or not, offer them right away, and charge a reasonable and stable fee.
When it comes to modern transportation, a common carrier generally refers to airlines or freight companies, such as FedEx. Other types of transportation, such as taxi-cabs or limousines, may still be considered common carriers if the company is regulated by certain laws and its services are open to the public.
The Role of Regulation
Though individuals or businesses need not be legally mandated to serve as common carriers, certain regulations often compel them to do so. In an era of monopolies and oligopolies, common carrier regulations prevent companies from refusing services to certain customers. In the United States, the Federal Aviation Administration and the Department of Transportation are responsible for the regulation of common carriers.
In certain cases, an individual or business may also face fines or other penalties if they choose not to offer common carrier services when required to. For example, the U.S. Coast Guard maintains strict regulations on water vessels transporting passengers and cargo, and failure to comply with these regulations can come with steep civil and criminal penalties.
Common Carrier for the 21st Century
In the 21st century, common carrier has become an increasingly significant concept as the global economy has shifted increasingly to on-demand services. We have seen the rise of platforms such as Uber, Lyft, and Doordash that rely on independent contractors to provide transportation and delivery services, instead of employees. This has led to calls for these companies to be regulated as common carriers so that they may be legally obligated to provide equitable access and service to all customers.
At the same time, common carrier regulations have also come under attack by conservatives as overbearing government intervention. Nonetheless, common carrier continues to be an important concept in ensuring fair access and reasonable pricing when it comes to transportation services.