Definition of contract carrier

accepts people who seek transportation for themselves or goods from one or more shippers under an agreement for compensation. This is in contrast to a common carrier which normally accepts for shipment virtually any person or thing, whereas a contract carrier narrowly defines acceptable shipments. Consequently, a contract carrier generally carries equipment that is especially helpful in serving its unique customers.

transportation firm that carries only select customers' goods and is not obligated to carry any particular customer's goods even if that customer is willing to pay. Contrast with common carrier.