ARLINGTON, Va. — Private fleets reached a historic high in 2023 by handling 75% of outbound freight for their parent companies, according to the latest benchmarking report from the National Private Truck Council. That figure marks a substantial jump from the 70% recorded the prior year and significantly eclipses the long-term historical baseline of roughly 67%. Supply chain shocks stemming from the 2017-2018 freight boom and the COVID-19 pandemic permanently altered how major brands handle distribution, driving massive investments in dedicated company trucks.
For-hire motor carriers absorbed the impact of this private expansion, watching their share of outbound freight slip to 16% from 17%. Dedicated contract carriers experienced an even steeper decline, falling to 8% compared to 11% the previous year. NPTC CEO Gary Petty noted that the massive capacity shakeups of recent years forced shippers to prioritize supply chain control and predictable budgeting above all else. Consequently, 84% of private fleet shipments now deliver directly to retail customers, representing the highest direct-to-consumer delivery percentage recorded since the survey began in two decades ago.
Survey participation reached an all-time high with 122 fleets reporting, sponsored by Penske Truck Leasing. The food products sector dominated the respondent pool at 17%, followed by retail at 16% and grocery operations at 14%. Participating fleets logged a 7.5% year-over-year increase in total shipments, easily outpacing the 4.6% growth rate from the preceding term. Total freight volume grew by 8.6%, while the financial value of these private freight movements climbed 7.2%. These gains materialized despite 72% of respondents acknowledging that for-hire capacity was readily accessible and cheap throughout the year.
What This Means for Drivers
CDL-A driver employment patterns are shifting as major private fleets continue expanding their power unit counts and infrastructure. Retail giants like Walmart now operate 12,663 power units, while Dollar General pushed its fleet past the 2,000-tractor mark to claim the No. 18 spot on the Transport Topics Top 100 Private Carriers list. These private operations typically offer stable schedules and competitive compensation that many OTR truck driver positions struggle to match. However, fleet managers are cracking down on granular efficiency metrics, tracking cost per mile, cost per stop, and cost per case with intense scrutiny.
Industry Reaction
Fleet executives point to superior customer service as the primary driver behind these internal logistics investments, with 49% citing service quality as their main justification. Controlling transportation costs accounted for 20% of the motivation, while supply chain resiliency made up 13%. To measure their return on investment, 55% of private fleet operators now actively benchmark their internal performance directly against for-hire carrier rates and service standards. Even with state-of-the-art equipment and heavy capital investment, these private operations continue battling persistent industry headwinds, including an aging workforce, steep recruitment hurdles, and stubbornly high driver turnover rates.
Key Points
- Private fleets handled 75% of outbound freight in 2023, up from 70% the previous year.
- Direct-to-retail shipments hit a record 84%, reflecting a heavy emphasis on end-customer service.
- Walmart reclaimed the top spot on the private carrier ranking with 12,663 power units.
- Ninety percent of private fleets now closely track cost per mile to measure operational efficiency.
Looking for a better trucking job? US Trucker's free job-matching service connects CDL-A drivers, OTR drivers, regional drivers, and owner-operators with 500+ top US carriers. Leave your details in the form on this page and a recruiter will call you within one business day. Trucking companies are hiring now.
Photo by Jagadish Chandra Mondal on Pexels