Transportation Operations LINCS Practice Exam

What type of carrier is described as an Asset-Based Carrier?

1. A third-party logistics provider that leases trucks

2. A company that uses its own trucks and warehouses to move freight

3. A carrier focused only on air transportation

4. A shipper who accepts goods without a contract

The correct answer is: A company that uses its own trucks and warehouses to move freight

The correct answer identifies an Asset-Based Carrier as a company that uses its own trucks and warehouses to move freight. This type of carrier owns the physical assets necessary for transportation, which includes vehicles and storage facilities. By having control over these assets, the carrier can manage logistics more effectively and ensure freight movement without relying heavily on third parties. This business model allows for greater operational flexibility and a direct influence on service quality, as the carrier is responsible for maintaining their equipment and infrastructure. The other options describe different situations: a third-party logistics provider may utilize assets without owning them, focusing instead on coordination and management; a carrier that only handles air transportation narrows its scope to one mode of transport but does not imply ownership of assets; and a shipper who accepts goods without a contract reflects a transactional role in logistics rather than operating as an asset-based carrier. Therefore, the defining characteristic of an Asset-Based Carrier is its ownership and operation of transportation assets.