Asset-Based or Non-Asset Based Intermodal Provider: Which is better for you?

There’s no easy way to answer the question of whether to go with an asset-based or non-asset based provider for your intermodal needs, because it truly depends on what your business requires to keep components and products moving. Let’s face it, transportation is critical, but it’s not usually a profit center – it’s an expense.   This is all the more reason to pick an intermodal transportation company that can suit your needs and your budget.

So, how do you keep transportation costs low without sacrificing reliability and service?   And who do you use to achieve that?  It might be an intermodal provider with their own fleet of containers (asset-based), or it might be a provider that depends on a network of carriers (non-asset based), or it may even be both.

Asset-Based Providers

There are approximately 237,000 domestic intermodal containers in the U.S. fleet currently, and asset-based providers control 157,000 of these.

With asset-based providers, it’s all about their network.  They must work to keep their network fluid, which means maximizing equipment utilization as much as possible.  Profit determines everything – your rates, and when you get equipment, if it’s available. Shippers using asset-based companies often find themselves on their provider’s schedule, not their own.

While asset-based intermodal providers can sometimes offer competitive rates, this is not always the case.   If you are lucky enough to fit into their preferred network and can adjust to their schedules, choosing them may benefit your budget.   If you don’t, or don’t always, or just can’t be in their network, the rate advantage will not be there.

Sometimes, the needs of the network change. This can happen at any time, and when it does, you may need to adjust again – because it can affect your rates, available capacity, and loading schedules. Where you are geographically, how much business you do with a supplier, what the shipper down the street is doing – these all come into play when the asset-based provider needs to prioritize. Their customers end up crossing their fingers, hoping that they’ll make the cut.

Non-Asset Based Providers

Non-asset based providers have access to the entire fleet of 237,000 domestic  rail containers, huge pools of shared 20’, 40’, and 45’ containers available for domestic use, and are able to partner with all rail providers.  To them, networks don’t matter.  Non-asset providers only take one thing into consideration – their customer’s needs.   This allows them to create flexible and customized solutions for the customer, and if the customer’s requirements change, the provider is able to adjust fairly quickly.

Non-asset providers are able to find the most competitive pricing and available capacity by looking at all of the options, not just one.   All equipment types, every railroad, every provider, every drayman are able to be considered, which makes finding the best option and cost for the customer’s needs more attainable.

Non-asset providers invest in expertise, customer service, and technology, not equipment.  They aren’t tied to managing their investments – they can focus 100% on service and customizing the best option for each customer based on the customer’s needs, not the needs of a network.

So, when looking at asset-based versus non-asset based intermodal providers, be sure to consider these things:

• Will you be shipping based on your schedule or someone else’s?
• Does this fit your needs or someone else’s needs?
• Does your provider have access to all 237,000 domestic containers (plus thousands of 20’/40’/45’ containers)?
• Does your provider have access to all providers and all rails?
• Were all options explored to come up with the best cost?
• What’s more important to your provider: you, or their equipment and network?

The answers to these questions will help provide you with the best route to getting your goods on the rail and to their final destinations. As a non-asset based provider, Trinity Logistics is poised to assist with your intermodal needs in accordance to the benefits listed above. To get a quote, click here.