In today’s competitive supply chain environment, choosing the right intermodal provider can significantly impact both costs and service. While many shippers are familiar with asset-based intermodal providers, non-asset intermodal providers are gaining recognition for their ability to offer greater flexibility, adaptability, and customer-centric service. In this article, we will explore why non-asset intermodal providers are an excellent choice for shippers, especially when it comes to providing tailored solutions that meet unique shipping needs.
Asset-Based vs. Non-Asset-Based Intermodal Providers – What’s the Difference?
Asset-based intermodal providers own, and are bound to use, their equipment and facilities, while non-asset based intermodal providers have the flexibility of partnering with multiple equipment owners and are unbound by a single network.
To expand, asset-based intermodal providers are companies that own transportation assets such as trucks, chassis, intermodal containers, and terminals. They typically have a vast fleet under their direct control, allowing them to manage every aspect of the shipping process internally. Major players in the intermodal space, like JB Hunt and Schneider National, fall into this category. While this all sounds good, they also must constantly invest in maintaining, insuring, updating and profiting from those assets, often leaving less for customer service, technology and customized solutions.
On the other hand, non-asset-based intermodal providers do not own their own equipment. Instead, they partner with various carriers and equipment providers to offer a wide range of intermodal solutions. By acting as intermediaries, they are not tied down to a single network, meaning they can access more capacity across multiple carriers (and locations), allowing them to create more customized solutions for their customers. While non-asset providers may not have direct control over assets, they can focus their resources on flexibility and customer service, which can be a game changer for many shippers.
The Key Advantages of Non-Asset Intermodal Providers
Greater Flexibility in Carrier Choices
One of the greatest advantages non-asset intermodal providers offer is their flexibility in working with a variety of carriers. Because they are not limited to a single fleet of trucks or railcars, non-asset providers can select from multiple carrier options to find the best fit for a customer’s specific needs. This becomes particularly valuable when capacity is tight or when unusual shipping routes or requirements arise.
In contrast, asset-based providers are restricted to their own equipment, which means if their capacity is full, you may experience delays or premium pricing. Non-asset providers, however, can tap into a vast network to secure the most efficient and cost-effective shipping solution at any given time.
Cost-Effectiveness Through Broader Market Reach
Since non-asset providers work with a variety of carriers and service providers, they have the ability to shop for competitive rates across the market. This broader reach enables them to find the most cost-effective options for shippers without being constrained by the operational costs associated with owning a fleet. This is particularly important for companies looking to scale their shipping operations without experiencing a dramatic rise in logistics costs.
Additionally, the ability to choose from multiple carriers means that non-asset providers can offer more competitive pricing, especially in fluctuating market conditions. Shippers of all sizes can benefit from this cost-effectiveness, as non-asset providers pass along the savings from their extensive market knowledge and partnerships.
High Service Levels Through Personalized Attention
Non-asset intermodal providers often have the advantage of being smaller in size compared to their asset-based counterparts, allowing them to offer a higher level of personalized service. This personalized approach means that each customer’s unique shipping needs are closely monitored and catered to, ensuring higher service levels throughout the shipment lifecycle.
Because non-asset providers don’t have the overhead of managing physical assets, they can devote more time and resources to customer service and problem-solving. They can quickly respond to disruptions or changes in shipment plans, often offering solutions more swiftly than larger asset-based providers. This higher attention to detail is what makes non-asset providers a preferred choice for businesses that value service reliability.
Leveraging Technology for Optimized Solutions
Non-asset intermodal providers have also been at the forefront of using technology to optimize their services. Many non-asset providers use advanced transportation management systems (TMS) and real-time visibility tools to track shipments, predict delays, and optimize routes for the most efficient delivery.
By embracing these technological advancements, non-asset providers offer shippers enhanced visibility and better control over their supply chain. This access to real-time data allows for faster decision-making and more proactive problem-solving, which is especially crucial in today’s fast-paced logistics landscape.
Dispelling Myths: Common Misconceptions About Non-Asset Intermodal Providers
Misconception 1: Non-Asset Providers Lack Control Over Capacity
One of the most common misconceptions is that non-asset intermodal providers have limited control over capacity because they don’t own their own equipment. On the contrary, the best non-asset providers maintain strong relationships with a variety of carriers, allowing them to secure consistent capacity even during peak shipping seasons. In fact, the flexibility of not being tied to a single fleet often allows non-asset providers to source additional capacity faster and more efficiently than asset-based providers.
Misconception 2: Asset-Based Providers Are More Reliable
Another myth is that asset-based providers offer more reliable service due to control over their own assets. While asset-based providers do have direct control over their equipment, non-asset providers compensate by forming strong partnerships with multiple carriers. These partnerships ensure that non-asset providers can offer the same level of reliability as their asset-based counterparts. In some cases, non-asset providers may even exceed expectations by being more responsive and flexible when issues arise.
Misconception 3: Non-Asset Providers Cannot Handle Complex Shipments
It’s also often assumed that non-asset providers cannot handle complex or specialized shipments as effectively as asset-based providers. In reality, non-asset providers are experts at coordinating with multiple carriers and equipment providers to manage even the most challenging shipping scenarios. Their ability to draw on a larger pool of resources means they can often find more creative solutions for complex shipments, such as those requiring specialized handling, oversized loads, or unusual routes.
Real-World Examples of Successful Non-Asset Solutions
Consider the example of a mid-sized manufacturer that needed to ship oversized freight across the country. Working with an asset-based provider, they found that capacity was limited and the costs were high. After switching to a non-asset intermodal provider, they were able to leverage a wider range of carrier options, resulting in significant cost savings and more consistent delivery times.
Another case involves a retail company that experienced repeated delays with an asset-based provider during peak shipping season. By partnering with a non-asset intermodal provider, the company gained access to additional capacity and faster delivery times, as the non-asset provider quickly sourced equipment from various carriers when the need arose.
Conclusion: The Future of Intermodal Is Non-Asset-Based
As the logistics industry continues to evolve, non-asset intermodal providers are proving themselves to be a vital part of the modern supply chain. Their flexibility, cost-effectiveness, and high level of customer service make them an attractive option for shippers looking for innovative and reliable solutions. By leveraging strong partnerships with carriers and utilizing advanced technology, non-asset providers are positioned to meet the growing demands of today’s shippers.
Shippers seeking a competitive advantage in their supply chains should consider non-asset intermodal providers for the adaptability and value they bring to every shipment. Here at InTek, we pride ourselves on having your unique needs covered. Reach out to us, and we'll work with you on flexible solutions that fit you best. For more information about InTek, or logistics and supply chain issues in general, check out our Freight Guides.
