A motor carrier is an asset-based trucking entity that transports property for compensation.
A motor carrier owns the assets and is primary on the insurance for the freight they move.
According to the US Department of Transportation the motor truckload market is a $700 billion dollar business with over 700,000 motor carrier companies, with 91.0% operating 6 or fewer trucks and 97.3% operating fewer than 20 trucks.
To optimize either a freight broker or carrier, it is important to note the different key performance indicators both use.
The differences could ultimately determine where to source shipping:
Motor carriers move freight on the assets it owns and the freight carrier’s value-add is freight capacity at the best value for shippers.
Since freight brokers do not own assets, their value proposition to the freight buyers is service, technology and knowledge.
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