Making the right decision for your supply chain
Whether you’re managing a growing business or scheduling your first few shipments, you’ll likely face an important decision: should you work with an asset-based provider or a freight broker? Some say asset-based is more reliable. Others argue brokerage gives you more reach.
The truth is the choice isn’t always that simple. In many cases, it’s less about choosing one over the other and more about finding the right fit for the needs of your freight.
What is an asset-based carrier?
An asset-based carrier owns the equipment and employs the drivers who haul freight. That means the trucks, trailers, service center buildings and other infrastructure are owned and operated by the company providing the service.
Example: ABF Freight is ArcBest’s asset-based LTL carrier
What does brokerage mean in freight transportation?
A freight broker doesn’t typically own trucks or employ drivers. Instead, brokers connect shippers with third-party carriers from their networks.
Example: MoLo is ArcBest’s full truckload brokerage network
Comparing the options
The decision between asset-based and brokerage freight transportation isn’t about which model is better. It’s about which one is right for your needs. Understanding each option’s strengths and limitations helps create a more resilient and cost-effective shipping strategy.
Asset-based carriers typically offer more direct control over your freight. Since they operate their own trucks and employ their own drivers, service tends to be consistent and predictable. If you’re shipping regular volumes along established routes or place a high value on reliability and accountability, an asset-based provider may be a strong match.
On the other hand, freight brokers provide access to a wide network of carriers. That flexibility can be a major asset when your shipment volume fluctuates, you need special equipment or you need capacity in a new market.
Leveraging assets and brokerage improves supply chain flexibility
Both asset-based and brokerage providers have benefits that can help your business, but choosing one over the other may leave gaps in your supply chain. To achieve a balanced transportation strategy, you need a provider that can offer multiple capacity options based on your needs. Achieve that goal with ArcBest.
Combining the reliability and consistent pricing of an asset-based system with the size and flexibility of a large carrier network, ArcBest provides a total service offering that helps supply chains run smoothly.
Explore our full list of solutions or connect with us to see where we fit into your supply chain.
