What Are Shippers and Carriers — Everything You Need to Know
Understanding the differences between shippers and carriers plays a crucial role in the intricate world of freight and logistics, as businesses seek to run smoother operations, save money and make deliveries on time. But many companies — especially small to mid-sized businesses — either conflate these two roles or fail to recognize how vital these functions are.
In this post, we will define what shippers and carriers are, explore some of the logistics trends right now, present examples of cost savings potential in the real world, then wind up with tips you can apply implement immediately to streamline shipping operations in your company. So if you’re a total starter in the world of supply chain or need a quick heads-up on fixing your logistics strategy, this guide has got you covered.
🚛 Who Are Shippers and Carriers?
Let’s start with the basics.
✅ Shippers
Shippers are the companies or individuals who need to move products from one place to another. They could be manufacturers, wholesalers, retailers or e‑commerce brands. The freight belongs to the shipper and it is up to him to bring him into the supply chain.
Examples of shippers:
- A couch manufacturer that sells its wares to retail stores
- Your data goes up to October 2023.
- A farm that sells produce to grocery chains
✅ Carriers
Carriers are the companies that transport the freight. They own or operate the trucks, ships, planes or rail that delivers goods. Carriers can schedule and execute transportation directly with the shipper or via a freight broker.
Examples of carriers:
- Trucking companies like Schneider and J.B. Hunt, or independent owner-operators
- FedEx or UPS-style air cargo companies
- Rail carriers like BNSF or CSX
🔄 How Do Shippers and Carriers Work Together
Smooth Sourcing: The Key to Successful Logistics Operations
Successful logistics operations are marked by seamless collaboration between shippers and carriers. Here’s how that process typically goes:
- The shipper is the entity getting freight ready and entering the details of the shipment (weight, dimensions, pickup/delivery locations).
- A freight broker (such as The American Truck Inc.) acts as a bridge between the shipper and a vetted, reliable carrier.
- The carrier collects and transfers the freight looking to safely, efficiently, and on-time deliver it.
- Update, track and post shipping reports are provided by the broker or carrier.
💡 Real-World Example: Cost Savings with The American Truck Inc.
A clothing brand based in Chicago was paying premium prices by making direct bookings with a few local carriers. But told deliveries and limited truck projects began to dent customer satisfaction.
Partnered with The American Truck Inc., a tech-enabled freight brokerage:
- They saw their average delivery time reduce by 18%
- This access to a wider carrier base enabled flexible scheduling
- They reduced transportation costs by 22% via route optimization and bidding on competitive carriers
Result? Quicker shipping, happier clients, and improved margins.
📈 Current Trends Affecting Shippers and Carriers
Deliveries On Time Are A Must
In an Amazon-driven world, businesses can’t be late with shipments. Delivery on-time performance is a competitive differentiator. Real-time GPS tracking and predictive analytics gives brokers and carriers an advantage.
Logistics Is Being Disrupted by Digital Freight Platforms
Digital load boards, AI-based route planners, etc., have deeper penetration these days with the carriers. Full shipment visibility is now a baseline expectation for shippers. This will be a space in which companies like Project44 and FourKites lead.
Driver Shortages and Higher Costs
Carrier capacity is tightening from ongoing driver shortages. This is why partnering with a broker with access to a large carrier network is crucial to avoid service disruption.
Sustainability in Shipping
Shippers Demand More Sustainability In Logistics. To meet ESG goals, carriers have adopted electric vehicles, route optimization and eco-friendly practices.
🚀 Practical Advice for Shippers & Carriers
Whether you’re shipping goods or moving them, here are expert-back strategies to optimize your logistics game:
For Shippers:
- Book early: Allow carriers or brokers advance notice to lock in the best rates.
- Work with a broker: A broker such as The American Truck Inc. can connect you with thousands of pre-Vetted carriers.
- Metrics you should track: On time delivery rates, claims and cost per mile.
- Smart pack: Pack properly to minimize damage claims and save costs.
For Carriers:
- Make sure to invest in tracking tech: Shippers want visibility.
- Set clear expectations for delays: Transparency creates long-term relationships.
- Diversify routes: Avoid putting all your eggs in one basket—tune routes for fuel and toll savings.
- Stay in compliance: FMCSA regulations, safety scores, and insurance standards.
🏆 About The American Truck Inc.
THE AMERICAN TRUCK INC.: CONNECTING SHIPPERS AND CARRIERS
We are a trusted logistics partner for businesses all over the U.S. We are here to connect shippers and carriers with tech-driven, reliable, and cost-effective freight solutions.
We help our clients:
- Get access to a national network of reliable carriers
- Real-time tracking for on-time deliveries
- Achieve cost savings through strategic route planning
- Compliance and logistics risk mitigation
No matter whether you ship five loads a month, or five hundred, we are here to help make your freight and logistics operations smooth.
We can connect shippers who need reliable carriers to carriers looking for consistent loads.
The American Truck Inc. for intelligent, scalable and stress-free freight solutions.
📧 Contact us today for a free consultation or a custom quote.