Here at C&D Logistics we\u2019re occasionally asked if we are an asset-based company, so we\u2019d like to take this opportunity to dispel a few common myths about asset vs non-asset based freight companies.<\/p>\n
Some shippers prefer that the freight companies they deal with own assets. Although the reason for this might be as simple as the shipper not entirely understanding the world of third party logistics, we\u2019d like to show how non-asset based 3PL companies can be a valuable ASSET to almost any company.<\/p>\n
What is an asset-based carrier?<\/a><\/p>\n It\u2019s often thought that if a freight broker is non-asset based they won\u2019t have direct access to trucks, but this couldn\u2019t be further from the truth. Most freight brokers have access to thousands of trucks through carrier partnerships. This may come as a surprise to some shippers, but for some non-asset based companies the network of trucks is typically much larger and more flexible than even the largest asset based carriers. An example of this is when a trucking company owns 60 trucks versus a broker with 5,000 carriers averaging 10 trucks each – it\u2019s quite obvious the broker has more capacity to assist his customer in moving their freight because they are able to cast a larger net.<\/p>\n Some shippers have the belief that non-asset based freight brokers cannot be competitive when it comes to pricing. They may think if you remove the broker from the transaction it will result in lower pricing for the shipper, but that line of thought is not completely accurate. We all know there is power is in numbers, and as a result of a freight broker\u2019s large volume in a given lane they may be able to leverage the volume they have and negotiate better pricing. Another equally important fact is that freight brokers often re-position asset-based carriers, resulting in less empty miles and more profit retention for their asset-based partners. No carrier wants to run empty, and back-hauls are done at a highly discounted rate to allow brokers to pass along competitive rates.<\/p>\nMyth #1:\u00a0 Non Asset Based freight brokers don\u2019t have direct access to trucks<\/h2>\n
Myth #2:\u00a0 Non-Asset Based Freight Brokers Are Not Cost Effective<\/h2>\n