The Advantages of An Asset-Based Carrier

The Advantages of An Asset-Based Carrier

Asset-based carriers are in high demand in today’s trucking industry. A large percentage of truckload carriers around the globe are asset based. Many major industries in the global market rely on asset-based carriers to transport and store their goods. An asset-based carrier is a carrier company that has all the necessary assets, such as vehicles and storage houses, needed to support a shipping business. The steady development and growing competitiveness in the trucking industry are slowly transforming asset-based carriers into the efficient and high-quality carriers of choice. There are several advantages to asset-based carriers that benefit both the company owners and their client corporations.

Readily available facilities

All asset-based carriers have a myriad of facilities ready for business. Clients can be assured that these carriers have the necessary vehicles and storage spaces available. This decreases the effort on the client’s part to find reliable assets. They will not have to worry about the procurement of resources and are free to maximize the productivity of these carriers. It also strengthens business relationships by allowing clients to place their full trust in the reliability of an asset-based carrier company. Asset-based carriers can be entrusted with the complete management of supply chains. In addition, clients can be assured that these facilities are in good condition for transportation and storage, as well as for safe freight management.

More cost-effective services

Because an asset-based carrier already provides the necessary resources, business is more cost effective. In addition to not having to worry about procurement costs, clients do not have to shell out additional finances to take care of any extra factors regarding transportation. There is a level of fiscal unpredictability with non-asset-based carriers regarding truck rentals and contracting warehouses and real estate. Asset-based carriers do not have to rely on outsourcing facilities and are thus more financially stable. In addition, since these companies do not have to pay rental costs for their storage facilities, they offer cheaper rates for warehouse storage and for the transportation itself.

Less conflict of interests

One of the issues with outsourcing assets is a potential conflict of interest among businesses. The interests of many businesses become involved when contracting assets in a non-asset-based company. In the event of an accident or other detrimental circumstances, companies that outsource services may be affected, and this could lead to an unwanted dispute. Asset-based carriers take full responsibility when transacting business, making it a safer choice for clients conducting business.

Added liability on goods

While transacting business, liability is placed on an asset-based carrier company. The company takes on the full responsibility of handling its client’s goods. Client corporations can be assured that if anything were to happen to these goods due to faulty equipment or careless management, they can put complete liability on the carrier company. This heightens the level of reliability of asset-based carriers since they are also required to fully answer to any costs or problems.

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