Class II carrier

Tags: Glossary

A classification of regulated carriers based upon annual operating revenues is as follows: motor carriers of property: $1-$5 million; railroads: $10-$50 million; motor carriers of passengers ≤ $3 million.

What is Class II carrier?

A Class II carrier is a term used to classify regulated carriers based on their annual operating revenues. This classification helps to categorize different types of carriers in the logistics industry.

In the context of motor carriers of property, a Class II carrier refers to those companies that generate annual operating revenues ranging from $1 million to $5 million. These carriers are involved in transporting goods and materials from one location to another using trucks or other motor vehicles. They play a crucial role in the supply chain by ensuring that products are delivered efficiently and on time.

Similarly, for railroads, a Class II carrier is defined as a company with annual operating revenues between $10 million and $50 million. Rail transportation is an essential mode of freight movement, especially for long distances and heavy cargo. Class II rail carriers contribute significantly to the transportation of goods across the country, connecting various industries and markets.

Lastly, when it comes to motor carriers of passengers, a Class II carrier is one that generates annual operating revenues of less than or equal to $3 million. These carriers primarily focus on transporting people, such as bus companies or shuttle services. They provide transportation solutions for commuters, tourists, and other individuals who rely on public transportation.

The classification of carriers into different classes based on their annual operating revenues helps regulators and industry professionals understand the scale and scope of each carrier's operations. It allows for better oversight and regulation, ensuring that carriers comply with safety standards and meet the needs of their customers.

Understanding the different classes of carriers is essential for logistics beginners as it provides a framework for comprehending the diverse landscape of the transportation industry. By knowing the classification system, beginners can better navigate the logistics field and make informed decisions when selecting carriers for their transportation needs.

In conclusion, a Class II carrier is a regulated carrier that falls within a specific range of annual operating revenues. Whether it is motor carriers of property, railroads, or motor carriers of passengers, each class has its own revenue threshold. This classification system helps in organizing and regulating the logistics industry, ensuring the smooth movement of goods and people.

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