Carrier Haulage vs Merchant Haulage

Carrier Haulage vs Merchant Haulage

Intermodal transportation can be organized under two general models:

  • Carrier haulage. Acting on behalf of the Beneficial Cargo Owner (BCO), the carrier is responsible for organizing transportation between the origin and the destination of the cargo. When an inland movement is concerned, the carrier has to use a third-party motor carrier to transport on its behalf and remains liable.
  • Merchant haulage. A portion of the transport chain, usually hinterland transportation (e.g. from port or rail yard to distribution), is organized by the BCO or an agent acting on its behalf. The BCO has the choice of selecting its own rail or motor carrier who is liable.