Freight Broker vs Asset Based Carrier: Which Should I Use?

When it comes to moving freight, one of the most important decisions shippers can make is choosing the right type of transportation provider. Should you go with a freight broker who offers flexible access to a vast network of diversified carriers, or an asset-based carrier that only works with equipment it owns and operates?

Key Takeaways:

• Asset-based carriers own their equipment and offer direct control.
• Freight brokers act as intermediaries with broad carrier networks and greater flexibility.
• The right choice depends on your load types, shipping frequency, and demand fluctuations.

Understanding the difference between these two options can save shippers time, money, and unnecessary stress.

What is the Difference Between a Carrier and a Freight Broker?

The differences between carriers and freight brokers can be summarized as follows:

• Freight Broker: An intermediary who uses relationships with multiple carriers to connect them with shippers who need to move freight. 
• Asset-Based Carrier: A transportation company that owns its own trucks, trailers, and other resources. 

In the following table, I’ve compiled some further key differences between brokers and carriers for ease of reference.

Carrier and shippers alike benefit from this third-party assistance: shippers get access to a large network of competitive logistics service providers, and asset-based carriers can work through brokers to increase their pool of available shippers and prevent empty, or “deadhead”, miles. 

Related: 5 Benefits of Using a Freight Broker for Shippers

Pros and Cons of Freight Brokers

When deciding between these two options, it's important to weigh the advantages and disadvantages of working with a freight broker.

Pros of Freight Brokers:

• Access to a vast carrier network for nearly any shipping need
• High scalability for seasonal, urgent, or fluctuating freight volumes
• Quick access to capacity in tight or high-demand markets

Cons of Freight Brokers:

• Less direct control over equipment and drivers
• Potential for inconsistent service quality if the broker doesn’t properly vet their carriers

While the last point may give some shippers pause, it simply means you should do your homework before choosing a brokerage. Look for brokerages who practice open communication about factors like FMCSA registration and their record for safe driving and regulatory compliance. 

Pros and Cons of Asset-Based Carriers

On the surface, it might seem that dealing directly with a carrier that owns its equipment is the safer or more reliable option. While this can be true in some scenarios, it’s not always the most practical or cost-effective solution.

• Pros:
  • High degree of control over shipping details and real-time changes
  • Direct communication between consignee, carrier, and consignor

• Cons:

• Limited fleet availability in certain regions or peak times
• Less flexibility in adapting to urgent or non-standard loads

If you work with the same carrier consistently, you may find it more difficult to expand operations to a national level. Brokers offer better scalability through a greater availability of resources from their carrier network.

Is a Brokerage or Asset-Based Trucking Company Better for Your Business?

Choosing the right partner depends on your company’s unique logistics requirements. 

Consider a freight broker if you:

• Ship frequently or in large volumes
• Handle LTL, flatbed, or irregular shipments
• Need cost-effective solutions with nationwide reach
• Value scalability and flexible carrier selection

Meanwhile, you might benefit more from a strictly asset-based carrier if you:

• Require tight control over every shipment
• Prefer direct relationships with your transportation provider
• Operate in limited regions that can easily be covered by a single carrier

Many successful shippers prefer to work with a hybrid 3PL that has its own fleet and warehouses, but can also outsource based on customer needs. They offer the steady scheduling of a strictly asset-based carrier and the versatile options a brokerage brings to the table. 

Related: 3PL vs Freight Broker: Outsourcing Your Logistics Needs

Freight Brokerage Services From USA Truckload Shipping

While dealing directly with a carrier can be advantageous, a freight broker can offer access to carriers, warehousing providers, and different modes of transport a single carrier can’t provide. For this reason, shippers often benefit from working with brokerages and 3PLs such as ourselves.

USA Truckload Shipping has access to a nationwide network of carriers who can store, transport, and even provide final mile delivery for your business’s goods and commodities. We don’t just do FTL shipping – we also offer rail transport, warehousing, and specialized equipment like refrigerated trucks & trailers.

Our full list of services includes:

• One-one-one consultations with our logistics experts
• White glove shipping and delivery
• Expedited freight 
• And more

Are you ready to get your shipment on the road? Call USA Truckload Shipping at (866) 353-7178 or fill out a request for proposal online today!