Peer-reviewed research, MIT research, graduate research and company-published case studies, told apart.
MIT: Asset carriers vs. non-asset providers
Asset-based primary carriers were approximately five times more likely to stick to contract-priced loads than non-asset providers, in both soft and tight markets.
Read the case study →5×
more likely to stick to contract-priced loads
MIT: The cost of routing-guide failure
MIT research found that average backup-carrier prices were approximately 9–12% above contract prices, depending on routing-guide depth, while average spot rates were approximately 23–35% above contract rates, depending on market conditions.
Read the case study →+9–12%
backup-carrier premium over contract; spot market +23–35%
Hershey: Carrier relationships and capacity commitment
A 2007 study based on data and expertise provided by The Hershey Company found that closer shipper-carrier relationships significantly influenced carriers’ willingness to commit assets and accept loads during periods of constrained transportation capacity.
Read the case study →Capacity
closer relationships influenced willingness to commit assets and accept loads when capacity was constrained
National retailer moves from non-asset providers to an asset-based model
A national retail chain that had relied substantially on non-asset providers for more than ten years moved its recurring freight toward an asset-based model.
Read the case study →16 → 22
lanes awarded after the first year
Drewry: Moving part of a network direct to carriers
An ocean-freight procurement case, not truckload: about 25% of a global retailer’s volume moved to direct carrier contracts.
Read the case study →25%
of volume ultimately allocated directly to carriers
MIT FreightLab: Where brokers have the advantage
The research doesn’t say “never use a broker.” On historically volatile-demand lanes, shipments were 2.3× more likely to be accepted by brokers than asset carriers, and unexpected surge shipments were roughly 2× more likely to be accepted by a broker.
Read the case study →2.3×
more likely to be accepted by brokers on historically volatile-demand lanes
The research doesn’t say “never use a broker.”
Brokerage networks earn their place on volatile freight, unexpected freight, surge demand, new markets, one-off lanes, recovery and network gaps.
Direct carrier capacity for the core.
Brokerage flexibility around the edges.
Bibliography
- 01Acocella, A., Caplice, C. & Sheffi, Y. (2022). The End of “Set It and Forget It” Pricing? Opportunities for Market-Based Freight Contracts. MIT Center for Transportation & Logistics. arXiv:2202.02367; DOI 10.48550/arXiv.2202.02367. Source: The End of “Set It and Forget It” Pricing? Opportunities for Market-Based Freight Contracts (opens in a new tab)
- 02Aemireddy, N. R. & Yuan, X. (2019). Root Cause Analysis and Impact of Unplanned Procurement on Truckload Transportation Costs. MIT Center for Transportation & Logistics. Advisor: Chris Caplice, PhD. Source: Root Cause Analysis and Impact of Unplanned Procurement on Truckload Transportation Costs (opens in a new tab)
- 03Acocella, A., Caplice, C. & Sheffi, Y. (2020). Elephants or Goldfish? An Empirical Analysis of Carrier Reciprocity in Dynamic Freight Markets. Transportation Research Part E: Logistics and Transportation Review, 142, 102073. Source: Elephants or Goldfish? An Empirical Analysis of Carrier Reciprocity in Dynamic Freight Markets (opens in a new tab)
- 04Zsidisin, G. A., Voss, M. D. & Schlosser, M. (2007). “Shipper-Carrier Relationships and their Effect on Carrier Performance.” Transportation Journal, 46(2), 5–18. DOI 10.5325/transportationj.46.2.0005. Source: Shipper-Carrier Relationships and their Effect on Carrier Performance (opens in a new tab)
- 05Schneider (2016). Retailer’s Switch to Asset-Based Provider Yields Improved Communication and Capacity Management. Customer case study; results reported by Schneider. Current source page undated. Source: Retailer’s Switch to Asset-Based Provider Yields Improved Communication and Capacity Management (opens in a new tab)
- 06Drewry Supply Chain Advisors. Ocean Freight Procurement and Shipper of Choice Workshop. Global retail client, 2022/23 procurement event. Ocean freight, not truckload. Source: Ocean Freight Procurement and Shipper of Choice Workshop (opens in a new tab)
- 07Acocella, A. (2023). MIT FreightLab research on tender acceptance by asset carriers and brokers, 2015–2021 shipment data supplied by TMC, a division of C.H. Robinson. Published summary: C.H. Robinson, December 13, 2023. Source: MIT FreightLab research on tender acceptance by asset carriers and brokers (opens in a new tab)
How can Goldmax do this for us?
Capabilities, lane evaluation and the one-lane start.