Power-only brokerage offers increased flexibility, efficiency

(Jesse Bussey/American Trucking Associations)

Once a niche service, power-only brokerage has matured into a key transportation model for shippers, brokers and carriers seeking greater flexibility and efficiency amid freight market volatility.

“Power-only brokerage started to exist more and more in 2010 to 2015, and it’s really grown in a huge way,” said Jeff Silver, founder of software developer Mastery Logistics Systems.

Today, there are now carriers that specialize exclusively in power-only operations, he added.

Power only involves a carrier providing the tractor and driver while the shipper, broker or third-party logistics firm supplies the trailer or, typically, a network of trailers. Separating tractor capacity from trailers can become even more attractive as freight networks become less predictable and shippers look for ways to add flexibility without committing to permanent capacity.

“Drop trailers aren’t new. Shippers and carriers have used them for decades,” said Tom Larson, senior vice president of enterprise sales for ITS Logistics. “What’s changed is the environment they’re operating in. Demand is more volatile, warehousing and transportation are tightly linked, and static trailer pools were built for more predictable freight than what most networks are dealing with today.”

Image

ITS Logistics' expanding trailer network gives shippers flexible, asset-backed capacity that can adapt as freight demands shift. (ITS Logistics)

Mike Trantina, product owner for the PowerBroker system at McLeod Software, said demand for power-only support has grown among pure brokerages and overflow operations affiliated with asset-based carriers.

“It ebbs and flows with the market to a degree, but we have seen consistent growth in this segment,” he said.

Retail, manufacturing, beverage and e-commerce operations are some of the strongest adopters because of their high volume and faster warehouse throughput, said Shannon Breen, CEO of FreightVana, a freight brokerage specializing in power-only transportation.

“Your biggest retailers want to have the flexibility in their yard,” he said.

Ryan Schreiber, chief growth officer for consulting firm Metafora, said power-only brokerage has evolved beyond the “first mover” stage and is increasingly being viewed as a structural opportunity within freight transportation.

“I think the real reason this makes economic sense for brokerages is that there’s an incredible market inefficiency in the ‘bring-your-own-trailer’ model of trucking,” he explained.

Tom Woodall, president of Bennett DriveAway, part of the Bennett Family of Cos., said truckload carriers, less-than-truckload fleets and companies managing large trailer pools across multiple locations are increasingly turning to power-only solutions to reposition equipment and manage surge capacity.

“A major driver behind that growth is operational flexibility,” Woodall said. “Carriers are under pressure to maximize tractor utilization and keep drivers moving on revenue-generating freight.”

Flexible operations

Power-only operations enable shippers to preload trailers during available staffing windows instead of coordinating every shipment around a live driver appointment, Breen said. That can reduce dock congestion, minimize detention and create additional staging flexibility within busy distribution networks.

Shawn McCloud, senior vice president of small-package operations for freight broker RXO, said power-only also gives shippers greater control over trailer scheduling.

Image

Drop-trailer capacity gives shippers greater control over scheduling while helping drivers spend less time waiting and more time moving freight. (RXO)

“By setting drop capacity, you allow that flexibility that you otherwise would have with your own fleet,” he said.

Larson said ITS Logistics built its DropFleet program as a hybrid capacity system that can incorporate ITS trailers, carrier trailers or a combination of both. Larson said the company scaled from roughly 3,000 trailers in 2024 to about 7,000 during peak operations in 2025 and is targeting 10,000 trailers in 2026.

“That growth is really being driven by shippers looking for asset-backed capacity they can flex with instead of a rigid dedicated model or spot-market transaction,” Larson said.

Reducing driver detention

For carriers and drivers, one of the largest operational benefits is reducing detention time. Drivers hauling live loads often spend hours waiting at facilities to load or unload freight, limiting the number of revenue-generating miles they can complete in a week.

“Drivers don’t get paid to sit around,” Breen said, adding that drop-and-hook operations improve productivity. “If you want to create more capacity in the country, increase the drive time by two hours. It would be an astronomical increase in capacity.”

Woodall said the ability to keep drivers moving is becoming increasingly important as fleets continue facing labor challenges.

Image

Woodall 

“Carriers are under pressure to maximize tractor utilization and keep drivers moving on revenue-generating freight,” Woodall said.

Power-only brokerage lowers equipment costs for many small fleets and owner-operators because carriers can operate without investing heavily in trailer ownership.

“Not having to cover the cost of the trailer is a big piece for the carriers,” Breen said.

Trantina said many smaller fleets initially entered power-only operations because they could purchase tractors without immediately taking on the additional capital expense of trailer fleets. “They would be able to buy a tractor, but they wouldn’t have to add that additional cost of a trailer,” he said.

Shippers frequently specify a minimum number of trailers that must remain on-site at all times. Falling below that threshold breaks the program.

“The power-only move is only valuable if there’s equipment to load into,” McCloud said.

Brokers, carriers and shippers must collaborate quickly to restore balance when pool levels drop.

Coordination and scale

The same flexibility that makes power-only attractive also creates a complicated operating environment behind the scenes. Managing a large-scale trailer pool is significantly more complex than traditional brokerage operations.

“It requires a more sophisticated go-to-market with capacity providers because the service is nuanced,” Schreiber said.

Providers must invest heavily in trailers, visibility systems, staffing and network planning to ensure trailers remain balanced across freight lanes and don’t sit idle for extended periods. “You’ve got to have hundreds of trailers,” Breen said. “To really have a national company, you probably have to get into the thousands.”

Managing networks profitably requires carefully planning equipment moves and where trailers ultimately land after freight is delivered.

“You’re really thinking about operating more like a trucking company, regardless of if you’re fully non-asset or asset-light doing PO brokerage,” Schreiber said. “With other services, generally brokers don’t have to think in terms of network.”

Managing trailer pools

Trailer pool adherence is a critical performance metric for many shipper programs because the entire model depends on having enough equipment available at loading facilities, according to McCloud.

Silver said one of the largest operational risks for brokers entering the market is failing to maintain network discipline because trailers must return loaded or be repositioned, which comes with a cost.

Trailer repositioning can also become expensive when providers lack sufficient freight density to keep equipment moving efficiently.

“If trailers are not properly balanced across a network, inefficiencies can multiply quickly,” Woodall said.

Breen said many companies underestimate the operational complexity and capital requirements associated with running large-scale power-only networks.

“Everybody likes to sell it because it’s really popular to sell, but it is easier to sell than it is to do,” Breen said.

Larson said the challenge is not simply placing trailers at facilities but maintaining the network as freight patterns shift.

“Having trailers on-site is the easy part. “The hard part is keeping the network fluid when demand changes,” he explained. “Trailers sit too long, pools get out of balance, preload windows break down, and suddenly the flexibility the shipper expected isn’t really there when they need it most. The orchestration is what matters.”

Technology and visibility

The increase in power-only brokerage also is reshaping the functionality needed from transportation technology systems. Traditional brokerage platforms historically focused on managing freight movement, trucks and drivers. Power-only operations require providers to treat trailers as primary operational assets.

“The trailer itself is part of the equation, not just the freight inside it,” Woodall said.

That shift is driving new investments in trailer visibility, telematics, geofencing and technology to help manage equipment.

On the TMS side, Silver said traditional brokerage systems have historically lacked the capability to manage trailer pools at all. That need drove Mastery to build its MasterMind TMS to connect carriers, brokers and shippers within a single system.

“You have to have a good system that knows what trailers are inbound, what trailers are already loaded or planned out, and manages all of that,” Silver said. “Brokerage systems historically have never had that capability.”

Tracking inbound and outbound trailers can be challenging.

Image

FreightVana's trailer pools support power-only operations by keeping equipment positioned and ready for carriers to pick up preloaded freight. (FreightVana)

FreightVana uses satellite tracking systems integrated directly into its trailer network so it isn’t relying on drivers’ cell phones to maintain visibility. The company also uses geofencing tools, radio-frequency identification technology and cargo sensors that identify whether trailers are loaded or empty.

ITS Logistics equips its trailers with GPS and door sensors while using carrier-facing applications to maintain visibility across non-ITS equipment. Larson said the biggest operational challenge often involves managing the information gap between when a trailer is loaded and when it is ultimately picked up by a driver.

“In power-only, that trailer might sit 24 to 48 hours before it moves, then it’s handed to a carrier who wasn’t there for the load,” Larson said. “If you’re not set up for that gap, you find out the hard way.”

Technology providers also are adapting to support the more complex workflows associated with power-only operations.

Tom McLeod, founder of McLeod Software, said transportation management systems increasingly are designed to surface operational exceptions that require immediate human intervention.

“The TMS’s responsibility is to track those specific requirements for the human to take outside the TMS and have those conversations with the driver,” McLeod said. “Whether it’s particular equipment and a customer, whether it’s a license that’s expired, maintenance issues, the TMS should be calling that out for a human to go take action on.”

Liability and fraud protection

As power-only brokerage expands, operators are facing increased scrutiny around liability, fraud prevention and carrier qualification standards. “There’s additional risk with power-only, just from a liability standpoint and reputation standpoint,” Trantina said.

Because brokers and shippers are entrusting carriers with preloaded trailers and expensive equipment, many providers maintain significantly stricter onboarding requirements than traditional brokerage operations.

FreightVana has several qualification requirements and uses third-party verification tools before onboarding carriers.

“We reject 30% to 40% of drivers on any given week that want to work with us because they just don’t meet our qualification standards,” Breen said.

McLeod’s TMS features controls that help prevent unqualified carriers from hauling power-only freight.

“You can make a lot of money on a lot of loads and lose it really quick if you’re not protected,” Trantina said. “Having those hardline controls allows you to stand up in court and say that you have established practices and measures that have been taken to ensure that control.”

Fraud risk also is becoming a larger concern. ITS has expanded its use of digital identity verification, license scanning, facial recognition and trailer monitoring systems to strengthen security.

“Cargo theft today is a lot more sophisticated than people realize,” Larson said. “Carrier vetting can’t just be an FMCSA lookup anymore.”

The evolving legal environment also is shaping how brokers manage power-only operations and carrier oversight.

“The lines get very gray,” Trantina said. “It’s your trailer and your freight, but it’s not your driver.”

Larson said recent legal developments surrounding broker liability related to the Supreme Court’s Montgomery v. Caribe Transport II ruling on May 14 are placing greater emphasis on accountability and operational controls.

“Shippers are going to start asking harder questions about who’s actually touching their freight and how you prove it,” he said.

The outlook for power only

McCloud said the long-term success of power-only programs depends heavily on setting clear operational expectations from the beginning.

“It’s a different type of model, and it’s a change, but once you get it up and off the ground and instituted, I think it’s beneficial for both parties,” he explained. “It’s just making sure that the expectations are set from the very beginning.”

Industry participants expect power-only brokerage to continue expanding as supply chains place greater emphasis on flexibility, utilization and operational resilience.

“It’s no longer viewed simply as overflow support or trailer repositioning,” Woodall said.

Silver noted that the model is particularly attractive for brokers operating dense freight networks with consistent lane volume.

“For the very large brokers that are out there that aren’t doing it yet, it’s a big opportunity,” he said.