Freight Option Comparison: From Asset-Based Carriers to Traditional Brokers to Tech-Only Brokers
For better or worse, you now have more freight options than ever before, ranging from Asset-based Carriers, to Traditional Brokers to Tech-only Brokers. How do you choose the right option for your freight?
See how each option compares in the table below:
Service Type | Asset-Based Carriers* | Traditional Brokers | Tech-Only Brokers | LiVe Logistics |
|---|---|---|---|---|
| Full Truckload (FTL) | Yes | Yes | Yes | Yes |
| Less-than-Truckload (LTL) | Yes | Maybe | Yes | Yes |
| Partial (Sprinter Vans & Box Trucks) | Maybe: depends on the fleet | Maybe | Unlikely | Yes |
| Intermodal | No | Maybe | Maybe | Yes |
| Drayage | No | Maybe | Maybe | Yes |
| Ocean | No | No | No | Yes |
| Air | No | No | No | Yes |
| Reliance on 3rd Parties to Deliver Freight (i.e. brokering) | Yes: when needs outpace assets | Yes | Yes | Yes |
| North American Coverage (multi-region options) | Likely not: asset-based carriers are regionally or locally focused | Maybe: this depends on the broker and other customers they already have who ship in other regions | Yes | Yes |
| Cross-Border Specialty | Maybe: limited options | Maybe | No | Yes |
| Reefer Specialty | Maybe | Maybe | Maybe | Yes |
| Flatbed Specialty | Maybe | Maybe | Maybe | Yes |
| High-Value/High Risk Specialty | No | No | No | Yes |
| Warehousing & Fulfillment | Maybe | Maybe | No | Yes |
| Quoting Time | Hours or days | Hours or days | Minutes: automated with no rep involvement | Minutes: automated with rep facilitation |
| Commissioned Carrier Sales Reps | Yes | Yes | No | No |
| Customer Service | Live reps, 24/7? | Live reps, 24/7? | No | Live reps, 24/7 |
| Asset-Based | Yes | No | No | Yes** |
| Driver/Carrier Vetting | New employee background checks with periodic drug testing | Limited | No | Comprehensive carrier vetting updated daily† |
* Even asset-based carriers may sub-contract to owner-operators, similar to brokers (fallacy #2); this is why they’re referred to as asset-based vs. asset-only carriers
** LiVe Logistics now has access to a fleet of 1,700 trucks through our Forward Air division, including dry vans, reefers and flatbeds
† The LiVe Logistics team performs a search on carriers, including reports on theft, holding trailers, equipment, credit score, on-time pickup and delivery, and more to initially vet them
Carrier Selection & Payments
Asset-Based Carriers
Customers pay the carrier directly and are responsible for finding the carrier, negotiating rates, obtaining qualifying paperwork (including lumper invoices), insurance verification, cargo liability coverage levels, and vetting each carrier.
Traditional Brokers
Some brokers need to be paid by you before paying carriers. This can limit carrier interest if not paid in a timely manner. Carrier selection and payment helps mitigate customer risk and reduce the carrying cost to operate a network. Many brokers align with carriers based on a commission structure and may have a limited vetting process, so carrier selection is often price-based and focused on maximizing margin.
Tech-Only Brokers
This is purely a transactional world where little (if any) interaction with the carrier or descriptions of the customer’s needs is clearly conveyed. Traditionally focused on bumping docks for lower value, less time-definite general freight.
LiVe Logistics
Carriers are paid within days of receipt of all paperwork to encourage timely paperwork returns and reward quality partners. All new carriers undergo a strict defined vetting process and existing carriers are monitored daily for ongoing compliance. All carriers must clear specific hurdles before hauling freight for our customers and tiered freight options like high-value and high-risk movement carriers are already trusted partners who have had ongoing success in other areas.
Get a Freight Quote Today
For our customers, LiVe Logistics incorporates the automation of a tech-only broker with the proactive, personal touch of traditional brokers and carriers – so you always know where your freight is and eliminate unnecessary freight costs. LiVe can also provide access to a customized load tracking board where you can see your shipments enroute and retrieve PODs once delivered.
Speak to one of our freight experts today or get a quote and see how much we can lower your freight costs.