When it comes to moving freight efficiently and reliably, the question often comes down to one choice: should you work with a freight broker or an asset-based carrier?
Both play crucial roles in the transportation industry, but they operate very differently. Understanding those differences can help you make smarter, more cost-effective logistics decisions.
Anderson Trucking Service (ATS) is uniquely qualified to speak to both of these transportation provider models: within the Anderson family of companies, ATS, Inc. operates as an asset-based carrier, while its sister company, ATS Logistics, Inc., is a freight brokerage.
In this article, we'll define both provider models, do a head-to-head comparison across five key factors, and provide our expert guidance on best use-cases for each. Let's get started!
Key Takeaways for Shippers
- Freight brokers act as intermediaries that connect shippers with qualified carriers.
- Asset-based carriers own and operate their own trucks, trailers, and drivers.
- Brokers offer flexibility and access to large carrier networks.
- Asset-based carriers provide control and reliability through dedicated equipment
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Many shippers benefit from a hybrid approach that leverages the strengths of both.
What Is a Freight Broker?
A freight broker is a type of transportation provider that acts as an intermediary between shippers and carriers. Rather than owning trucks or employing drivers, brokers use their industry relationships and technology platforms to match freight with the available carrier in their network best-suited to the job.
Brokers work with a wide network of transportation providers, so they're ideal for companies with variable shipping needs, seasonal volume spikes, or diverse routes across the country. The flexibility of a large network allows shippers to scale capacity quickly without committing to a long-term contract with a specific fleet.
Best for: Irregular freight schedules, one-off or spot shipments, seasonal spikes, and customers that need or want access to multiple equipment types.
What Is an Asset-Based Carrier?
An asset-based carrier is a transportation provider that owns and operates its own fleet of trucks and hires its own drivers. This direct ownership gives carriers more control over truck and driver allocation, service quality, and communication.
Because asset-based carriers' businesses are synonymous with their fleets, they tend to invest heavily in equipment, driver training, safety programs, and tech. Customers benefit from these investments through more predictable service, reliable drivers, and a greater level of familiarity with their logistics team.
Best for: Consistent lanes, long-term shipping relationships, and freight that requires specialized equipment or handling.
Freight Broker vs. Asset-Based Carrier: Side-by-Side Comparison
| Factor | Freight Broker | Asset-Based Carrier |
| Ownership | Does not own trucks or hire drivers. | Owns and operates equipment and hires drivers. |
| Flexibility | Can scale quickly using large carrier networks. | Limited by available fleet size. |
| Control | Relies on carriers for service execution. | Full control over drivers, maintenance, and scheduling. |
| Pricing | Typically more dynamic, based on current market rates. | More stable, but less flexible. |
| Reliability | Depends on carrier network quality. | Depends on priorities of individual carrier, but typically consistent service and accountability. |
When to Choose a Freight Broker
Freight brokers excel in situations where reach and flexibility matter most. They can source carriers across multiple regions and quickly adjust to supply and demand changes, which is especially helpful during peak seasons or when entering new markets.
Consider choosing a freight broker when:
- You have fluctuating freight volumes or inconsistent shipping lanes.
- You need quick access to multiple carriers or equipment types.
- You want to compare market rates and secure cost-effective options.
When to Choose an Asset Carrier
If knowing exactly who’s handling your freight is paramount to you, an asset carrier could be a good fit. Shippers often feel more confident relying on an asset carrier's procedures, maintenance protocols, and drivers because they are used to dealing with them firsthand.
Consider choosing an asset carrier when:
- You value direct accountability and control.
- You have recurring shipments or specialized freight needs.
- You want a long-term logistics relationship that delivers consistent performance.
You Don't Have to Choose: Building a Diverse Freight Network
For many shippers, the best choice of transportation provider type isn’t one or the other — it’s both.
It's true that some shippers prefer the control and accountability that comes with a carrier owning and operating their own equipment. Unlike brokers, asset carriers can offer a truck in-hand or guaranteed capacity because they have direct access to (and control over) their fleet. They're also more likely to have the bandwidth to learn your business's needs and processes, or the unique handling or securement requirements of specialized freight.
But freight brokers have the edge when it comes to flexibility and adaptability. They're not limited by the size of a single fleet, so they can offer a greater pool of options to meet your evolving needs anywhere in the country (provided their network is that robust.) They can also help you shop around for a rate that works for your budget, if price is among your top concerns.
Strictly using only one type of transportation provider — asset carrier or freight broker — can undercut your business's ability to stay nimble in challenging markets, or when your shipping needs change.
Instead, aim to build a diverse network of transportation providers that includes carriers and brokers. This strategy ensures you'll have the options you need across all regions, equipment types, and market conditions.
A hybrid network means you can cover more consistent or dedicated lanes with carrier assets while still leveraging brokered capacity for overflow, seasonal, or one-off shipments.
From Versus to Vetting: Assess Your Network
The key to shipping success (regardless of which type of provider you lean on the most) is to find asset carriers and freight brokerages you can rely on. Thoroughly vetting each new addition to your freight network can help boost its quality, and therefore the quality of the service you receive.
We've put together two free, downloadable tools to help you do just that: the Freight Carrier Selection Checklist and the Freight Brokerage Selection Checklist.
These vetting guides provide actionable frameworks for assessing potential additions to your network. Use them to determine which candidates from both provider models will be the best for your business's transportation needs.
Why? Because if you have faith in a provider's service, safety, and accountability, you can trust your freight will be in good hands — whether you have a direct relationship with the carrier hauling your freight or not.
