Asset-Based Carriers – Brokering Freight
Excellent article taken from the Journal of Commerce, Aug. 10, 2009 Issue, page 9.
Broker vs. Motor Carrier
I HAVE BEEN on both sides of transporation, and everyone brokers loads (“Brokers Ride a Rollercoaster,” www.joc.com/node/410818). It’s comedic when I hear a shipper say they don’t use brokers and only use asset-based companies. If only they knew the number of asset-based companies that are brokering loads and charging the shipper asset-based prices. It’s all one big brokerage at the end of the day. Brokering loads cannot be avoided completely unless your customer doesn’t mind their freight not moving.
On the flip side, I know for a fact some so-called asset-based companies only own three to four trucks and continue telling shipping companies they have over 10 times that amount of trucks. They tell the shipper they are indeed asset-based with several trucks to load their freight, but have every intention of brokering it all.
The worst thing about this is they demand more money for the comfort of using their trucks while really brokering every single load. I am not saying all asset-based companies do this, but beware of those few that do. I want to end by saying it doesn’t matter if you’re dealing with a broker or asset-based carrier; both have their fair share of service failures, one no more than another. Heck, I get calls from asset-based companies asking for help covering their loads, and I call asset-based companies for help covering my loads.
– By batlogistics1 on 7/18/09
A MAJOR BENEFIT to using a Top 100 freight broker like Freight Tec is our intense Carrier Qualification process. With the possibility of asset-based carriers brokering loads, you’re leaving yourself open to many potential problems. You have no assurance of their qualification process and no say in WHO they actually get to haul your load. That is scary! Freight Tec qualifies each and every carrier making sure they meet the requirements for safety, insurance and quality service. Choosing a broker with such high standards, protects you and your freight.
“…Shippers, brokers, and others responsible for carrier selection must have proper protocol in place for selecting carriers and must be diligent in their efforts to properly investigate and qualify carriers. Failure to do so could lead to catastrophic events to the public and substantial financial damage to the shipper, broker, or others engaging carriers to transport freight.”
– By transportation lawyer, Justin R. Olsen
Again, Freight Tec has a stringent gualification process for EVERY carrier.