Private Fleet Versus Dedicated Fleet: What You Need to Know

Red White and Blue Parked private fleet Trucks Lined up at a Truck StopA reliable, cost-effective supply chain is crucial to the success of your business. Deciding whether to purchase a private fleet or outsource your shipping needs is one of the most important decisions you will make. While owning and operating a private fleet allows you total control of your supply chain, the cost and learning curve can be prohibitive. 

The good news is that you can enjoy the benefits of a private fleet without the added expense and responsibility. Let’s take a look at how dedicated fleets differ from private fleets and how Veltri Inc. can work for you.

What Is a Private Fleet?

Some businesses ship their products with a private fleet of equipment and vehicles that they own or lease. These entities basically run in-house trucking companies alongside their primary businesses. In addition to producing the product they sell, a private shipper is also responsible for the cost of fueling, maintaining, and insuring the equipment, as well as managing logistics and hiring drivers.

Companies with the financial resources to manage large distribution centers and complicated shipping operations generally favor private fleets. In 2019, FleetOwner reported that more than 200,000 private fleet trucking companies were operating in the United States, making up 68% of outbound freight traffic.

Advantages of owning a private fleet include:

  • Capacity to meet your unique shipping needs
  • In-house control of the company supply chain
  • Owning your own equipment
  • Brand recognition via company logos on your equipment

What Is a Dedicated Fleet?

Dedicated fleets are independently owned by trucking companies and are hired by businesses that either do not operate private fleets or need additional shipping capacity. These dedicated fleet operators own and maintain their own equipment, hire their own drivers, and are also responsible for all related costs. Shipping is their only business. 

They contract with customers to carry only that customer’s freight on specified routes for specified periods of time. These shippers are distinct from Less Than a Truckload (LTL) shippers that carry loads for multiple customers on the same trucks.

Advantages of hiring a dedicated fleet service include:

  1. Flexible capacity to meet changing needs
  2. A transparent supply chain managed by industry professionals
  3. Access to specialty equipment without high initial investment and maintenance costs
  4. Freedom to focus on running your primary business

What Can a Dedicated Fleet Do for You?

With a dedicated fleet, you can:

Gain Access to Logistics Experts

Take the guesswork out of determining what shipping solution is best for you. A logistics expert can evaluate your unique needs and offer support so that your shipment gets from point A to point B in a timely fashion.

Get Cost-Effective Shipping Solutions

Vehicles are expensive to buy, insure, and fuel. Hiring drivers adds to payroll costs and clerical work for your office manager. You’ll likely need to contract with a company to service your fleet. Also, unexpected and costly repairs can derail your delivery schedule. 

Dedicated fleet shippers maintain their own fleets and drivers, so all you have to do is focus on your product and your customers.

Increase Your Capacity With Specialty Equipment

Even if you have an in-house fleet, you may have seasonal needs for:

  • Refrigerated shipping
  • Large shipments
  • Last-mile deliveries
  • Enhanced security for high-value shipments

Hiring a dedicated fleet allows you flexibility as your shipping needs change.

Access the Latest Technology for a Seamless Supply Chain

Because shipping is their only business, dedicated fleet services have experienced personnel and the latest technology for managing routes, drivers, and schedules. State-of-the-art tracking allows you to easily see where your shipments are. As a result, you and your customers can expect deliveries to arrive in full and on time.

Partner With Veltri to Simplify Your Supply Chain

Enjoy the benefits of a private fleet trucking company without the risk of owning and managing one. Whether you need a one-time haul or dedicated fleet services, our logistics experts will design a custom solution to meet your shipping needs. Our vetted, experienced drivers will deliver your products safely and efficiently with quality equipment maintained by our own highly trained mechanics. 

Founded in 1973, Veltri Inc. is a family-owned company serving the Northeast Region of the United States with an emphasis on customer service and employee retention. As a carrier for USPS, Veltri Inc. has been awarded the prestigious Eagle Spirit Award four times. Contact us today for more information about our dedicated contract and freight brokerage services. 

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