If you are a shipper looking for a freight broker it is important to note there are different kinds of freight brokers. The two major types of freight brokers are asset based or non-asset based and it is essential to know the difference. Depending on your organization’s needs one type of freight broker might be better for you than the other. Keep reading to learn more about each type.
Asset Based Freight Brokers
Asset based freight brokers are companies that have their own equipment that is needed to move or store the freight. The assets that they own could be warehouses, distribution centers and/or trucks. To be an asset based freight broker the company doesn’t need to have all of the equipment needed to move or store the freight, they usually just own many of the assets.
An asset based freight broker works directly with the shipper to coordinate the transportation of the goods.
Non-Asset Based Freight Brokers
On the other side of the spectrum are non-asset based freight brokers. These types of freight brokers do not own their own equipment (or assets). Non-asset based freight brokers act as a middle man between the shipper and the customer. They work with their networks and the shipper to arrange the shipment of the freight to the correct location. A non-asset based freight broker provides you, the shipper, with one point of contact during the shipping process. Typically these freight brokers have relationships with qualified carriers that are trusted to take care of your freight.
One of the major misconceptions about non-asset based freight brokers are that they don’t have direct access to trucks and equipment needed to transport your freight. This is false. Most non-asset based freight brokers still have direct access to trucks. They work with various partners and carrier networks to get your goods from point A to point B. In some cases, the non-asset based freight brokers can even have access to more trucks than an asset based freight broker depending on the size of their carrier network.
In the end the decision is yours, depending on your needs one type of freight broker might be better for you than the other. Whichever type you choose, remember to ask the right questions. Check out these questions you should ask before your select any type of 3PL.