An asset based carrier is a company – like a trucking company, LTL carrier or railroad carrier – who has their own equipment and works directly with customers like you to move your freight. Conversely, freight brokers and 3PLs, like Trinity Logistics, are non-asset based companies. We have no equipment and simply act as the middle man between the asset based carriers and customers like you, in order to arrange the shipment of your freight.

The debate about which kind of provider is “better” – asset based or non-asset based – has been ongoing for years. Some argue that they’ll only work with asset based carriers, others swear by sourcing everything to a single 3PL, and a good amount of companies work with a mix of both kinds of providers. When you’re trying to decide which type of provider is a good fit for your business, weighing the pros and cons can be difficult when you haven’t had the experience of working with both.

There are four major areas where working with a non-asset based 3PL, like Trinity, is beneficial:

Single-Source, Multimodal Service

If you’re a larger company, you might be shipping a mix of truckload, LTL, and intermodal freight. Working with asset based providers means you’re working with separate truckload carriers, LTL carriers, and intermodal carriers. That can get a little complicated. A multimodal 3PL like Trinity offers all of the above shipping services, so you can rely on one single point of contact for all your shipping needs. This is very convenient, for instance, when you want to compare the cost of moving a shipment over the road vs. over the rail – you can do that in a single step, rather than reaching out to multiple freight shipping companies.

Truckload Capacity and Carrier Sourcing

In the world of truckload shipping, capacity is unpredictable. Currently, truckload carriers are still recovering from the harsh, long winter in the US, compounding with a delayed produce season. When you consider the severe driver shortage that’s only worsening, it’s clear that truckload capacity is something to worry about.

This is where working with a non-asset based provider comes in handy. We’re the ones who find the truck – not you. Conversely, when you work directly with an asset based carrier, you have access to the capacity of their own fleet only. Our network of over 30,000 carriers is ready and waiting to help move your freight, and a network of that size is simply beyond what most companies have access to.

Carrier Compliance

There’s nothing worse than unknowingly shipping freight with a carrier who is uninsured, a scammer, or non-compliant with government rules and regulations – especially if an accident or theft occurs. Unless your staff has the time and resources to thoroughly vet each asset-based carrier to verify their credentials and compliance, working directly with asset-based carriers may introduce unnecessary risk into your supply chain. Any approved carrier in our network has gone through an intense approval process, so working with Trinity (or any reputable 3PL who follows a similar carrier vetting procedure) may save you a potential headache down the road.

Nationwide Network

Unless it’s one of the larger asset based carriers, many carriers only have a presence in one portion of the country, or only prefer to run certain lanes. A huge benefit of working with an established 3PL or freight broker is that no equipment means no boundaries. For example, we have over 90 offices spread across the US and Canada, so we can virtually service any lane, thanks to our expansive carrier network. The same will be the case for any other top logistics companies. You won’t have to spend extra time calling certain carriers for certain lanes, or searching for a new carrier when you open that new distribution center across the country.

Are there benefits to working with asset based providers, too? Absolutely. The best decision for your company will simply depend on your circumstances, your logistics department, and the kind of service you require. We would love to talk to you about working with a 3PL, if you still have questions! Ask us a question here!

This is a question that many customers ponder on a daily and weekly basis. If you are a shipper or manufacturer utilizing intermodal (rail shipments) as a means of moving your freight, no doubt you already have a list of items that you consider when selecting the best intermodal logistics provider. Humor me and please keep reading anyway, I may possibly add one or two items that you haven’t considered in the past.

What’s an IMC?
First, let’s discuss what an “IMC” (Intermodal Marketing Company) is today versus what they were in years past. Many years ago when intermodal movements were just beginning on the railroads, the rail carriers quickly realized that it was very difficult for them to “retail” their service directly to potential customers. The railroads were accustomed to dealing with a shipping public with locations on their property with rail tracks running direct into their facilities! These were customers that moved grain, paper, lumber, steel, and automobiles as a few examples of the commodities that worked well for the rails.  There was untapped opportunity for new shippers and manufacturers to move their freight by train, but they didn’t have to be located close to the railroad. In fact, many rail customers are several miles from the nearest railroad tracks.

IMCs (Intermodal Marketing Companies) started popping up around the country, providing marketing and sales for the railroads. Railroads readily accepted the IMCs’ help for marketing and selling their intermodal service! Originally the functions and responsibilities of an Intermodal Marketing Company were very limited. Over time those responsibilities have changed greatly to the point they not only provide sales, pricing, and marketing, but are also responsible in many cases for securing the container to move the load as well as the draymen to pick up the load at origin and destination. The Intermodal Marketing Company also provides one other key function today they didn’t provide in years past, and that is customer service.

The #1 Differentiator
Customer service is one function that truly differentiates one Intermodal Marketing Company from another.  Some intermodal marketing companies have nearly eliminated the customer service function, relying heavily on cheap pricing to secure freight for shipping intermodal. I strongly recommend you consider customer service as a required function whether you’re renewing intermodal contracts, doing spot quotes, or just starting to move your freight by train. Let me paint a picture for you. There are only a few “Class I” railroads left in the United States and Canada, in fact only two Class 1 railroads in the West, only two in the East, and one in the Midwest. This means all of your intermodal freight will move on one of these five railroads and you’ll likely experience either good service the rail carriers provide, or you’ll suffer from issues the railroads are having. These include wash outs, derailments, hurricanes, mudslides, etc.

The element that separates the best Intermodal Marketing Company from the “less than best” Intermodal Marketing Company is how well they communicate the issues with you, the customer, and how that may affect your movement on a train. Many IMCs simply provide an online tracing tool, leaving it up to the customer to find out if any delays are going impact their shipment. Other IMCs will have automated faxes or emails broadcast to the shippers with very generic information about the issues. The “best” IMCs will create the type of communication you value. They will offer the online tracking combined with a personal touch and contact when you prefer it, letting you know about the issues that might affect your pick-up or delivery, and also offering alternatives when solutions are needed. They keep your freight and your best interests at the forefront of every conversation and interaction.

Asset Based or Non-Asset Based
Another consideration when selecting an IMC is to weigh the importance of being an intermodal asset owner or a non-asset owner? While this is an item that certainly differentiates the IMC’s, this element should not be one of your main deciding factors on which IMC you select. There are several excellent IMCs that move a lot of volume on trains do not possess intermodal equipment. Being an asset based Intermodal Marketing Company will provide only a small amount of leverage on pricing. I have heard many asset based carriers make the sales pitch that their company is better than company “XYZ” because they own assets, thus they have the ability to guarantee equipment for all shipments. The downside is the asset based IMC is more concerned about “turn times” or “trips per month” on their assets than they are about providing good customer service to you. The IMC without assets in most cases has access to just as many intermodal containers (in some cases even more), but if solely focused on your needs and serving the best interest of your shipment rather than their equipment.  This is certainly an item that differentiates IMCs, but I feel it should be weighted very lightly when choosing the “best” intermodal marketing company for your needs.

All Aboard the Green Train
Issues are affecting our environment, the fact is not surprising anyone reading this blog. Chances are your company has even launched a “go green” initiative, whether it’s recycling office paper or joining the EPA’s Smartway Partnership. Moving your freight by train will result in a tremendous reduction in the carbon emissions into our atmosphere. When you are looking for the best intermodal provider, this is an item you should certainly consider. Are they a member of Smartway, do they have active programs in place to help the environment today and tomorrow?

Where Do You Rank?
Another element that certainly tells the story about an IMC is their current client base. Who do they currently do business with? Several IMCs tout that 80-85% of their volume and revenue comes from 10% of their customers. What this tells me is how much they like doing business with very large companies. Other IMCs prefer to do business with small to medium sized customers so their distribution of volume and revenues are spread over a much larger customer database. Typically the IMC catering to smaller clients has a natural knack for making the smallest customer feel just as important as their largest customer. Which type would you prefer to deal with? Who would you think values your business more?

Continuous Improvement
The final deciding factor on how to select your best intermodal marketing company involves the dreaded word “change”. There are many IMCs that are happy with the way things are now, while others are continually looking for ways to embrace change, either in processes or technologies. They’re doing this in order to improve how they are doing things for the betterment of the customers (for you)! I will certainly concede that change for the sake of change isn’t good, but change for improving service to the customer is something that differentiates a complacent intermodal provider from one striving to be the best.

It is my sincere hope that the list of items above will stimulate some thoughts for you the next time you need to move an intermodal shipment. No doubt you have noticed that I didn’t include much in my blog about price. Trust me, leave it on the bottom of your decision criteria and you will be able to select the best intermodal provider for your business needs without concentrating on price.

For more information on our intermodal division, connect with an expert today.