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Schneider donates trucks, Congress considers women-driver-friendly bill 11/18/2019 Friday Short Haul - CTA files lawsuit against California, Highway Hero nominations sought, video of "Move Over" crash 11/15/2019 Tesla announces new electric Semi model 11/13/2019 Not everyone happy with potential FMCSA clearinghouse delay 11/11/2019 Friday Short Haul - AI taking driving jobs, CRV scam, Truckers protest AB-5, ELDs quit working 11/8/2019 Investigators cracking down on truck accident fraudulent lawsuits 11/6/2019 So you want to start your own trucking company? 11/4/2019 Friday Short Haul - FMCSA emergency exemptions, snow plows, FedEx employee bribery charges 11/1/2019 Human smuggling via big rigs on the increase 10/30/2019 Carriers, drivers look at ways to deal with California's AB-5 10/28/2019 Friday Short Haul - Millennials and trucking, Truckers Christmas Group, Navistar settlement 10/25/2019 Too many drivers still don't know to "Move Over" 10/23/2019 Are trucker strikes a thing of the past? 10/21/2019 Friday Short Haul - Passenger car drivers, spotted lanternfly, women drivers 10/18/2019 OOIDA makes final push for better HOS rules 10/16/2019 Car-truck crash fatalities continue to increase 10/14/2019 Friday Short Haul - Amazon's fleet of day cabs, legislator's disclosure, WTA petition 10/11/2019 ATA chief takes on truck-accident lawyers 10/9/2019 Lonely on the road? Get a furry friend 10/7/2019 Friday Short Haul - Lab-grown meat, fraudulent freight brokering, FMCSA HOS committee, FMCSA Clearinghouse 10/4/2019 UPS takes giant leap in its drone delivery program 10/2/2019 Female drivers are safer bet for trucking companies 9/30/2019 Friday Short Haul - Embark gets financing, FMCSA announces safety grants, Covenant exits Mexico routes, and trucking statistics 9/27/2019 Emissions standards battle heats up between the EPA and California 9/25/2019 Smog checks in the future for California truck drivers 9/23/2019 Friday Short Haul - Volvo Dynamic Steering, Meals for 18 Wheels, speeding crackdown, OOIDA opposes legislation 9/20/2019 Telematics could be insurance-premium-saving boon for fleets 9/18/2019 54 percent of survey respondents still not impressed with telematics technology 9/16/2019 Friday Short Haul - Walmart video, it's churn, not shortage, California's independent contractor bill, hemp drivers plea 9/13/2019 TCA honors three Highway Angels 9/11/2019 Now they're talking about "smart" trailers 9/9/2019 Friday Short Haul - Detention-time comments, truck orders decline, diesel fuel shortage 9/6/2019 Berkeley study says reducing independent truckers can alleviate climate change 9/4/2019 Clearing up concerns about the drug and alcohol clearinghouse 9/2/2019 Friday Short Haul - Hurricane Dorian, Speed limiter bill, Thank a Driver campaign 8/30/2019 Georgia jury awards $280 million for truck-driver-caused multi-fatality 8/28/2019 Friday Short Haul - New eCascadias, Top cities for truck driver jobs, Push against driverless trucks 8/23/2019 Decision on California drivers' employee/contractor status coming down to the wire 8/21/2019 UPS jumps on autonomous bandwagon with TuSimple investment 8/19/2019 FMCSA publishes proposed HOS rule changes 8/16/2019 Fleets, drivers coming to like automated manual transmissions 8/14/2019 CVSA asks for new truck crash study 8/12/2019 Friday Short Haul - HOS revisions delayed, AEB mandate proposed, Koch sued for sex discrimination 8/9/2019 Kodiak Robotics takes lead in autonomous truck industry race 8/7/2019 New York City combats rash of cyclist/truck clashes 8/5/2019 Friday Short Haul - CRST wins lawsuit, OOIDA opposes insurance hike, UPSNav 8/2/2019 Mechanics shortage equals driver shortage in intensity 7/31/2019 DOT announces almost 1$ billion in grants to fix infrastructure 7/29/2019 Friday Short Haul - DOL on sleeper pay, UPS drone delivery, Geowiz ELDs 7/26/2019 FMCSA takes a look at assault, harassment of female and minority drivers 7/24/2019 It's hot out there, what's a trucker to do? Can't idle. 7/22/2019 Friday Short Haul - Utah truck rollovers, aging truckers, lifetime CDL bans 7/19/2019 Truck-mounted LED billboards coming under fire 7/17/2019 Trucker 'drones on' with unique approach to teaching driving skills 7/15/2019 Friday Short Haul - Rhode Island tolls, human smuggling, contractor vs employee status 7/12/2019 ELD mandate deadline looming, many still not compliant 7/10/2019 New "boot" device being deployed to threaten Walmart overnighters 7/8/2019 Friday Short Haul - Prime Inc vs Amazon, mother fights HOS changes, truck drivers appreciation week 7/5/2019 Proper way to fly the American flag on your truck this Fourth of July 7/3/2019 Roundabouts are becoming popular; but are they best for trucks? 7/1/2019 Friday Short Haul - Skills test proposal, driver shortage, hemp sentencing, driverless trucks 6/28/2019 Experts warn of active wildland fire season 6/26/2019 More states signing on to enlist truckers against human trafficking 6/24/2019 Friday Short Haul - Shippers of Choice, insurance rates, wheel spikes, WIT award 6/21/2019 Freight numbers not holding up to 2018's highs 6/19/2019 Truck safety group urges purges of drug abuse drivers 6/17/2019 Friday Short Haul - Self-driving certificate, truck platooning, trade war stacking up cargo 6/14/2019 HOS waiver coming soon for fireworks haulers 6/12/2019 FMCSA takes a further look at detention time 6/10/2019 Friday Short Haul - Autonomous delivery, HOS rules changes, CDL retest 6/7/2019 Roadcheck 2019 in effect this week 6/5/2019 Hemp arrest prompts USDA memo 6/3/2019 Friday Short Haul - Waymo big rigs, Move over sting, Under-21 comments 5/31/2019 Severe weather prompts renewed emergency declaration 5/29/2019 Memorial Day holiday is prime time for cargo thefts 5/25/2019 Friday Short Haul - Hauling hemp, road rage fatality, new rules for autonomous vehicles 5/24/2019 Autonomous trucks on USPS test run 5/22/2019 Future era of cab-less trucks will be the end of HOS rules 5/20/2019 Friday Short Haul - FMCSA under-21 comments, Tesla autonomous car crash, 24,000 drivers sign contract with YRC 5/17/2019 Under-21 interstate drivers getting serious look by FMCSA 5/15/2019 Trucker Buddy program matches drivers with a classroom; everyone wins 5/13/2019 Friday Short Haul - Driver awarded $80 million, ODFL driver wins, loading dock black hole 5/10/2019 Storm breaks out from Rockies, slams into Midwest, South 5/8/2019 Capacity issues have shippers looking at private fleets 5/6/2019 Friday Short Haul - HOS rules, dark skies, Falcon drivers 5/3/2019 'Bug' permits now required for four eastern states 5/1/2019 Simulator use is catching on for schools, carriers 4/29/2019 Friday Short Haul - Thinking electric, Penske opens charging station, border crossing crisis, railroads taking trucking business 4/26/2019 ELDs might not be the panacea that was hoped for 4/24/2019 Truck drivers may soon see "phantoms" driving yard trucks 4/22/2019 Friday Short Haul - Nikola big rigs, WIT welcomes Peterbilt, Oregon crashes, Border crossings 4/19/2019 Carriers claim financial benefit of putting up drivers in hotels 4/17/2019 Uber's IPO application reveals interesting data about its freight brokerage business 4/15/2019 Friday Short Haul - CDL examiner arrested, tolls proposed for trucks, marijuana use on the rise 4/12/2019 Smart Load Board will get carriers the loads they need 4/10/2019 Huge lines and long wait times greet carriers at Mexico border 4/8/2019 Friday Short Haul - Marijuana, ATA campaign, personal conveyance rules 4/5/2019 Over-the-air downloads revolutionize parameter updates 4/3/2019 Don't get scammed by skimmers 4/1/2019 Friday Short Haul -- New Cascadias honored, motorist survey, U.S, Xpress awarded, rest stop parking 3/29/2019 Legislators address underride collisions, propose more underguards for trucks, trailers 3/27/2019 Motorists soon may encounter a different kind of truck convoy 3/25/2019 Friday Short Haul -- Women in Trucking, irate motorist, FMCSA eases HOS, Safe-Cap 3/22/2019 Recent survey shows cost of roadside repairs is rising 3/20/2019 FMCSA announces drug and alcohol clearinghouse website 3/18/2019 Friday Short Haul - Swift settlement, driver shortage myth, TCA Best Fleet award 3/15/2019 The hidden danger of looking but not seeing 3/13/2019 Accident scammers target trucks for financial payout 3/11/2019 3/9/2019 3/9/2019 Friday Short Haul - Snow on the roof, bypassing toll road, Waze under fire 3/8/2019 Retailers blame driver shortage for price increases 3/6/2019 Drivers' smartphones may be clue to road roughness 3/4/2019 Friday Short Haul -- Freight rates, HOS changes, tonnage reports 3/1/2019 New tax changes hit drivers hard 2/27/2019 FMCSA to implement under-21 interstate driver program for former military 2/25/2019 Friday Short Haul -- Connecticut tolls proposed, hydrogen fuel-cell trucks, cell phone use 2/22/2019 Congress committee looks at state of America's highways 2/20/2019 Number of cargo thefts is down; but dollar value about the same 2/18/2019 Friday Short Haul -- Crossing the border, CA sues FMCSA, Lobbying against larger trucks 2/15/2019 Detention - A problem still in search of a solution 2/13/2019 February Highway Angels honorees named 2/11/2019 Friday Short Haul -- C.R. England announces pay raises, eCommerce impact on trucking, TCA announces best fleets 2/8/2019 Is a guaranteed minimum pay the solution to the driver shortage? 2/6/2019 Long CDL testing wait times cost economy billions of dollars; not helping driver shortage 2/4/2019 Friday Short Haul -- Walmart hiring, Uber Freight App, Speed-limiter Law, America's Road Team 2/1/2019 Cranking -- The Good, The Bad, and the Ugly 1/30/2019 California survives challenge to its low-carbon fuel standards 1/28/2019 Friday Short Haul - Highway robbery ... autonomous trucks ... new trailers 1/25/2019 LithiumHub enters jump-starter market with Jumpbooster JP30 1/23/2019 2019 Looks Good For The Transportation Industry 1/21/2019 Raymond Burt named TMC Trainer of the Month for February 2018 3/28/2018 TMC Transportation Announces Recipient of Prestigious Wheel Master Award 3/7/2018 TMC Transportation Named The Home Depot’s Flatbed Carrier of the Year For Fourth Straight Year 2/28/2018 Pay Raises & New Peterbilts for PAM Drivers 2/26/2018 New DOT Drug Testing Rules Effective Jan 1, 2018 1/11/2018 Amtrak Derailment: Trucks Haul 270,000 Pound Locomotive Engine During Cleanup 12/21/2017 Pepsi Places Largest Order Yet For Tesla Electric Trucks 12/12/2017 Kavin Hallett named Trainer of the Month for October 2017 12/8/2017 Over 100,000 Truck Drivers Likely Have Undiagnosed Sleep Apnea And More Testing Is On The Way 8/10/2017 Drivers Share Their Best Tips, Tricks, And Secrets For Life On The Road 7/18/2017 Drivers Are Losing Money By Taking The Wrong Approach 7/13/2017 Truckers and Guns: What Is and Is Not Legal 7/6/2017 Preparing To Go Solo For The First Time? Experienced Drivers Share Their Best Advice 6/29/2017 The Truck Stop Survival Guide: Advice From Experienced Drivers 6/15/2017 The Worst Cities For Traffic In The U.S. For 2017 6/8/2017 We Ask Drivers How They Would Make The Logbook Rules Better 5/30/2017 Self Driving Trucks Are Not Coming Anytime Soon 5/25/2017 11/30/-0001

Capacity issues have shippers looking at private fleets

Dave Wickenhauser on Mon, May 6, 2019

Last Updated: Sun, May 5, 2019

With the ,a href="https://www.truckingtruth.com/guide-pages/chapter1/truck-driver-demand-shortage.html">ongoing driver shortage and the capacity problems that the shortage creates for shippers, truck industry watchers are seeing an increase in manufacturers and retailers starting up their own private fleets – or signing with carriers for a dedicated operation.

It might be a surprise to some that private and dedicated fleets already outnumber for-hire carrier fleets in the United States. And that divide is growing.

According to 2018 statistics compiled by the National Private Truck Council, there are more than 200,000 companies that operate private fleets in the United States, representing 68 percent of all outbound freight.

And it might also be a surprise to some that Walmart, despite the disproportionately large share of news publicity that its fleet enjoys, is not the largest private fleet.

The 2018 numbers for private fleets shows the leader to be PepsiCo, Inc., with 14,300 tractors and 15,000 trailers, followed by Sysco with 7,800 tractors and 9,600 trailers, and Coco Cola with 7,536 tractors and 9,550 trailers. Walmart trails the top three with its 6,617 tractors and 61,000 trailers.

Even the smallest private fleet in a list of the top 100, Dunkin Brands Group, boasts 430 tractors and 450 trailers.

So, what is the attraction for manufacturers and retailers to maintain their own fleets or contract with a carrier for dedicated operation?

Greg Orr, executive vice president of U.S. truckload operations for TFI International, told DC Velocity, "It's really about [access to] steady capacity to support the [shipper's] business and having better control over service. In some cases, it's also a more predictable model in terms of cost."

Also, although the industry as a whole suffers from a driver shortage, and private fleets are not immune, private fleets generally pay better driver wages and enjoy less turnover as a result.

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Walmart, for example, offers its drivers average annual pay of about $87,000 with veteran drivers earning more than $100,000. And, like Walmart, other private fleets promise a more-predictable work schedule, and better benefits like detention and sleeper pay.

An NPTC study last year found that private fleet driver turnover was about 14 percent annually compared to turnover for commercial for-hire carriers of 94 percent. The NPTC also found that private fleet drivers have a three-times better safety record than commercial industry drivers in general.

Companies wishing for the benefits of their own private fleets but not wanting to face all the infrastructure issues and risks with maintaining one can turn to contracting with a carrier for a dedicated operation.

Bart De Muynch, with market research firm Gartner, told DC Velocity that maintaining a fleet encompasses more than just buying trucks and hiring drivers and getting them on the road.

"You need an entire dedicated organization that can procure the equipment, design the network, do the scheduling and routing, and manage all the aspects—maintenance, safety, HR, regulatory compliance, and driver recruiting and retention," he said.

"If you are not that specialized [in transportation operations] and don't have the expert personnel and resources to manage it, you run the risk of exposing yourself to higher costs."

That's where a dedicated contract comes in.

Companies like Penske, which does a lot of dedicated business, will handle all aspects of running a fleet for its customers, like guaranteeing capacity, taking care of the operating authority, handling insurance, etc.

Carriers that run dedicated operations for their customers have a similarly high focus on safety, efficiency, and driver turnover as is enjoyed by private fleets.

Comparing benefits to disadvantages of private fleets

Here's a list of benefits to having a private fleet:

  • Guaranteed capacity – In today's just-in-time-inventory model manufacturers and retailers depend on an ever-decreasing window of time to move their freight. Now, as capacity decreases due to several factors, companies could find themselves with costly delays if they rely on the vagaries associated with for-hire carriers.
  • Customer service – A manufacturer's or retailer's private fleet drivers often become ambassadors for their company, putting on a better face for their employer, so to speak, than a for-hire driver might.
  • The ability to customize a fleet – Similar to guaranteed capacity, a company can adjust its fleet to meet the ebb and flow of demand, as well as better prepare for future needs.
  • Advertising and brand recognition – Not to be diminished is the huge brand recognition boon for a company to have hundreds, if not thousands, of its trailers adorned with billboard-sized logos and other media seen criss-crossing America on its highways.
  • Flexibility – Again, related to guaranteed capacity, a private fleet can meet sudden surges in demand for shipping than a for-hire, or even a dedicated contract might not be able to provide.

The disadvantages of maintaining a company's private fleet basically revolve around cost. The company must make a huge up-front investment in tractors and trailers, as well as creating a whole new shipping infrastructure on their grounds.

In addition, the cost of fuel, maintenance of equipment, and creating a whole new level of human resources apparatus might be enough to dissuade a company from creating its own private fleet. Then there are the regulatory compliance requirements, logistical organization and technological advances to consider.

But, obviously, many have successfully overcome these disadvantages and now seems the best time for many companies to turn to creating their own private fleets.

Sources: DC Velocity, Transport Topics, Fleet Owner, Winnesota

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