What is a contract carrier?

A contract carrier refers to a service provider that offers transportation for passengers or freight based on specific contracts with individual customers or companies. This means they can provide services either on a one-time basis or on a continual basis depending on the agreements made. This flexibility allows contract carriers to tailor their services to meet the unique needs of their clients, as opposed to common carriers, which are obligated to serve the general public under set regulations and schedules.

The other options do not accurately define a contract carrier. The requirement to carry passengers or freight, as highlighted in one of the choices, typically applies to common carriers rather than contract carriers. Similarly, the idea that a carrier only transports goods for the government reflects a misunderstanding of the broader scope of services that a contract carrier can provide, as they can serve both private and public entities. Lastly, the notion of operating under a fixed schedule relates more closely to common carriers, which provide regular service for public convenience, rather than the more flexible arrangement of a contract carrier.