Should Your Freight Transportation Strategy Embrace a Private Fleet?

by Chris Doersen and Adam Gray

With rates rebounding and carrier reliability stretched thin, more shippers are asking a critical question: Should we take control with a private fleet? 

According to the 2024 Benchmarking report from the National Private Truck Council, private fleets have been gaining traction with enterprise shippers, but how do you know if it’s the right move for your organization? 

Chris Doersen, Executive Principal of Client Delivery at JBF, and Adam Gray, Business Architect, share their insights on the benefits, cost structures, and tactical use cases of shipper-owned private fleets. 

Watch their conversation here, or keep reading for a summary. 

A private fleet is a transportation solution fully owned and operated by the shipper. Unlike third-party carriers, it gives companies direct control over drivers, equipment, and service execution.

According to Adam, "Private fleets shine when service complexity increases. When you’re hitting 10 to 15 stops per route or need inventory support at delivery sites, you’re beyond what most common carriers provide." 

A private fleet may make sense for your organization if one or more of the following are true: 

• You have higher stop counts (10, 20, or even more stops per route) in defined regions
• White-glove delivery service (in-store stocking, inventory handling, etc.) is important to your business model
• Timing is critical to your shipments – for example, just-in-time delivery for perishables, medical supplies, or high-impact goods
• You have opportunities with certain geographic areas, such as locations with natural internal backhaul opportunities

A private fleet can serve as a strategic asset in several ways: 

• Risk mitigation: Protects against market volatility, seasonal rate spikes, and capacity constraints (e.g. – holidays, weather events, daily demand) 

• Lane optimization: Fleets can be deployed strategically to offset rising common carrier rates 

• Relationship-driven service: Consistent drivers build trust and improve stop efficiency 

Private fleet utilization depends heavily on geography and route density. These can be broken down into Local, Mixed Use, Regional, and National. 

• Local: High stop-density, “white glove” services like in-home or store deliveries. 75 Mile Service Radius from a domicile, estimated 150 total miles per day

• Mixed Use: Combines store and distribution center deliveries. 120 Mile Service Radius average from a domicile

• Regional: Broader geographic areas with consistent round trips (limited overnights/layovers). Stock transfers are used to facilitate local fleet sourcing. 180 Mile Service Radius average from a domicile

• National: Relays and Multiday Routes supporting stock transfers and manufacturing. Less suited to private fleets unless service levels demand it or efficient roundtrip moves can be made. 250 Mile Service Radius locally and approximately 500 miles between domiciles 

In the midst of market unpredictability, it is especially important that you take proactive steps to minimize risk. As you plan ahead, a few key factors may influence your decision: 

• Equipment age, rising wages, and carrier rate fluctuations will shift cost dynamics 

• Lane coverage and seasonal demands may shift and should be reassessed regularly 

• Asset strategies may need adjustment to protect margin and service expectations

As costs rise and market unpredictability grows, now is a good time to reassess your transportation strategy. Technology and the associated expenses are often a small percentage of the overall cost to run a fleet, so make sure that you are getting the best out of your routing, dispatch, mobile, tracking, and metrics applications – and determine if you can add value by improving processes or adding new technology.

Whether you are evaluating how to best utilize your fleet – or whether a private fleet makes sense in the first place – we can help you identify where it adds value and where to balance with other forms of transportation. Sometimes, a quick conversation is all it takes to gain clarity and move forward with confidence.