GlossaryEN1 min readUpdated: Jun 12, 2026

external contractor

An external contractor delivers specialized services or tasks for a principal without being a direct employee of that principal's organization.

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Last updated: 12 June 2026Published: 27 January 2026

Source: https://www.linguee.com/german-english/translate/Fremdunternehmer.html

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Definition & Explanation

An external contractor delivers specialized services or tasks for a principal without being a direct employee of that principal's organization. In logistics, external contractors are indispensable: freight forwarders hire warehouse operators for inventory management, courier services for mail operations, or local agents for customs clearance abroad. The distinction from a subcontractor is fluid – 'external contractor' is often used more broadly, while 'subcontractor' implies a deliberate sub-contracting arrangement. The principal typically retains responsibility for the quality and legality of the services provided.

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external contractor

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Related Terms

Haulage Contractor

Independent Contractor Logistics

customer-supplied items

Cartage Contractor Logistics

liability for the result (strict performance liability)

Contract for Transport Services

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