In 2023, private fleets achieved a new milestone, handling a record 75% of the outbound freight for the companies they serve, according to the latest report from the National Private Truck Council. This is up from 70% the year before and highlights a shift toward more cost-effective practices in the industry.
Before these recent years, private fleets consistently managed about 67% of freight. But disruptions like the 2017-18 freight boom and the COVID-19 pandemic have pushed that number higher, as noted by Gary Petty, CEO of NPTC, in an August chat with Transport Topics.
For-hire motor carriers saw a slight dip, managing 16% of outbound freight in 2023, down from 17% in recent years. Meanwhile, dedicated contract carriers’ share dropped to 8%, down from 11% last year.
A key takeaway from this year’s survey is that 84% of private fleet shipments now go straight to retail customers, which is the highest percentage ever recorded since the survey began in 2005. This shift reflects a growing focus on direct customer service.
The survey saw a record 122 fleets participating, with 28% being first-time contributors. This marks a significant increase from 20% the previous year. Penske Truck Leasing sponsored the survey.
The food products sector led the way among respondents (17%), followed by retail (16%) and grocery stores (14%).
Participants reported a 7.5% increase in shipments year-over-year, a jump from the 4.6% growth seen the year before. Overall volume grew by 8.6%, slightly better than the 8.4% increase from the previous year.
Private fleet freight movements saw their value rise by 7.2%, a notable improvement over the 2.8% increase recorded the year before. This growth occurred despite 72% of respondents saying that capacity was more readily available and affordable in 2023.
Private fleets expanded significantly during the pandemic to better control their supply chains and manage fluctuating costs, even as for-hire carriers faced a slowdown and lower rates.
The top reasons for maintaining a private fleet included better customer service (49%), controlling transportation costs (20%), and improving supply chain management (13%). When considering the top five reasons, managing costs and capacity were crucial.
Cost metrics are increasingly important, with 55% of respondents comparing their fleet’s performance to for-hire carriers in terms of service and rates. This is up from 45% the previous year. Cost per mile has become a key focus, with 90% of carriers tracking this metric closely.
Additionally, cost per stop and cost per case have gained more importance this year, indicating a more detailed approach to cost management.
The Transport Topics Top 100 Private Carriers list shows how these trends are shaping the industry. Dollar General moved up to No. 18 after expanding its fleet to over 2,000 tractors. Walmart, with its fleet now at 12,663 power units, took back the top spot from PepsiCo, which had led the rankings for 14 years.
Despite these advancements, private fleet operators are still grappling with driver-related challenges, including an aging workforce, recruitment difficulties, and high turnover rates.
Source: Transport Topics
