Within the transportation and trucking industry, there are two ways that shippers can hire out their transportation: Brokered transportation solutions and asset-based shipping options. Transportation brokers work as the middle-man between a shipper and an asset based carrier. They work with a client to learn about their shipping needs and find a qualified asset-based carrier to haul the product from point A to point B. How does the actual carrier operate and what does asset-based mean?
Asset based means that a company owns or leases equipment (or assets) to complete a job. Therefore, asset based carriers are the companies that own the trucks and trailers that haul goods within the supply chain. They hire drivers for both short, local runs as well as long-haul deliveries. Asset based carriers can have just one or two trucks in their fleet, or hundreds of assets moving products throughout the entire country. With many different options and types of asset based carriers available, there are solutions to meet the needs of every supply chain.
The Different Types of Asset Based Carriers
In the world of logistics, carriers are typically categorized as long haul, regional, or local transportation providers. Long haul carriers move materials on lanes that can be hundreds to thousands of miles. These carriers typically will have drivers that spend nights on the road and rest/sleep away from home most of the time. Long haul lanes can travel from as far as Los Angeles to New York City, so having reliable drivers who understand the laws and ensure best practices is vital.
By comparison, regional carriers typically move materials within a state or region of the country. These drivers may be on the road for hourly runs or could be out for a day or two at a time delivering their loads but are typically not away from home for very long. This is obviously appealing to many drivers as it still allows for a profitable trip while allowing them to maintain a stable home life.
Lastly, local asset based fleets usually finish a product’s journey to its final destination. These fleets haul full loads of one customer’s product or smaller amounts for multiple customers called Less than Truckload (LTL delivery). Local carriers also do final-mile deliveries, which are short runs to deliver directly to a consumer or a company.
Advantages of Working with an Asset Based Carrier
While there are advantages and differences between each type of shipper, one of the main advantages of using an asset-based carrier is the direct relationship with a company and its team. Establishing a relationship with an asset-based team can often start with working through a customer service department. Murphy is well respected for our high level of customer service, having earned the reputation for over 118 years. When you work with Murphy’s customer service team, your rep can begin to learn patterns and find more efficient and effective ways to transport products for you.
By going directly to the source, there can also be cost savings made possible by either working on increasing the efficiency of logistics lanes or by bundling services. Bundling services is when a company uses more than one of a 3PL’s assets. They may utilize storage within a warehouse and also use that same company as their asset based carrier for transportation. Because Murphy offers warehousing, transportation, brokerage, and more, we are able to provide you with the very best pricing for your custom needs.
Working with an asset based carrier such as Murphy can fill a specific need for any supply chain. Owning a fleet gives the asset based carrier the advantage of being flexible with customers and building solid relationships. An asset based carrier will typically have a set schedule in place in order to keep their assets and employees working consistently. This ensures reliable solutions for clients while also allowing predictable business for the logistics provider. With so many advantages for your supply chain, it makes sense to set up a free consultation with Murphy’s asset-based transportation team to begin customizing your logistics plan.