← Lessons 16. Contracts and Conditions of Carriage Quiz 0 / 12 read 1. INTRODUCTION 2. OWNED TRANSPORT 3. HIRED TRANSPORT 4. CONTRACTS OF CARRIAGE 5. FREIGHT FORWARDER 6. CLEARING HOUSE 7. SUB-CONTRACTOR 8. GROUPAGE OPERATOR 9. AGENTS 10. CONCLUSION 11. Quick Exam Numbers / Facts – Memorise These 12. Final Memory Checklist 3. HIRED TRANSPORT Hired transport provides flexibility and a range of options. 3.1 CARRIER The simplest way to obtain transport is to use a professional transport operator to carry the goods. The service can range from a dedicated parcels carrier to a heavy-haulage contractor moving an abnormal load. A carrier using another operator to carry surplus loads is using a subcontractor. Advantages: No capital is tied up in vehicles by the sender. Transport services can be increased or reduced quickly as demand changes. No need for the customer to become involved in employing, training, retaining and managing drivers. No need for the customer to deal with operator licensing arrangements for its own fleet. A wide range of UK hire-and-reward hauliers is available. Disadvantage: Spot hiring can mean loss of direct control; the sender becomes dependent on the carrier and its staff to complete deliveries satisfactorily. 3.2 LEASING Leasing allows a business to operate its own vehicles without tying up its capital in vehicle ownership. Under a straightforward finance lease, ownership remains with the finance organisation. The finance organisation takes advantage of any applicable capital allowances. The operating business effectively has a long-term rental arrangement over the agreed vehicle life. Main advantage: no large cash sum has to be found for outright purchase, and a competitive leasing price may be available. 3.3 CONTRACT HIRE Contract hire is a specialised form of leasing used in the commercial vehicle industry. In addition to providing the vehicle, the contract-hire company may provide: Vehicle management. Roadside assistance. Vehicles can be supplied in the client's livery. Vehicles can be supplied with or without drivers. If the vehicle is supplied with a driver, operator-licensing considerations are the responsibility of the contract-hire company. If the hiring business uses its own drivers, operator-licensing considerations fall to that business. 3.4 RENTING Renting is a short-term way for an existing operator to deal with peaks and troughs in demand. Vehicles and trailers can be rented for the particular job in hand. Drivers may be recruited directly on short-term contracts or through an agency. For goods vehicles over 3,500 kg GVW, the operator must consider the operator-licensing implications. If there is insufficient margin on the operator licence, an application may be needed to increase the number of authorised vehicles.