Contract Carrier Authority permits a company to transport property for specific shippers under continuing contracts, rather than holding itself out to serve the general public the way a common carrier does. In practice, contract authority lets a carrier negotiate customized, ongoing arrangements — dedicated lanes, specific rates, service-level agreements — with a defined set of shipper partners. Historically, common and contract authority were more operationally distinct, but modern regulations and industry practice have blurred the line significantly, and today most carriers that need for-hire authority simply obtain both, since doing so imposes little extra burden and maximizes flexibility. Contract authority is especially relevant for carriers built around dedicated or private-fleet-style relationships, where a shipper wants a consistent, exclusive-feeling arrangement without opening capacity to competing shippers. As with common authority, FMCSA requires the carrier to meet fitness, safety, and financial responsibility standards before granting or maintaining contract authority, and can suspend it for the same reasons — most notably a lapse in required insurance.
A carrier running dedicated freight for a single retail chain typically operates under Contract Carrier Authority for that relationship.
Shown as 'Contract' within the Operating Authority field on carrier profiles that hold it.