The Good and The Bad of having your own freight fleet

Owning your own fleet involves lots of planning and implementing numerous decisions. Fleet ownership entails additional expenses such as procurement, maintenance, insurance, fuel management, driver background checks, vehicle tracking, and more. Regardless, whether you choose to manage your own fleet or outsource these responsibilities, it’s crucial to consider all potential outcomes and circumstances.

There are many key questions to consider. Hence, you will need to ask yourself who will manage the fleet? and How much are we willing to spend? Unfortunately, many companies focus solely on the financial aspects of these decisions, neglecting operational considerations, future expansion plans, and the expertise required for efficient fleet management.

In this article we’ll outline the advantages and disadvantages of each available option to assist business owners like yourself in making informed decisions. While it may initially be challenging to trust external companies with your operations, partnering with freight brokers experienced in efficient logistics and fleet management can yield long-term benefits.

Advantages of Owning Your Own Shipping Fleet:

1. Control: You have complete control over your shipping operations, including scheduling, routing, and pricing. This can be especially important for time-sensitive or high-value shipments.
2. Flexibility: Assuming you know your market well, you can add more or less stops to your schedule, in order to adapt to your customers needs
3. Brand Recognition: Having your own shipping fleet can help you build brand recognition and credibility with your customers in the long term. This could eventually lead to increased sales and customer loyalty

Disadvantages of Owning Your Own Shipping Fleet:

1. Cost: Owning and operating a shipping fleet can be expensive. Thus, you will need to purchase or lease vehicles, hire and train drivers, and pay for fuel, maintenance, and insurance.
2. Maintenance: The routine upkeep of trucks and materials, such as oil changes or overhauls, entails downtime and extra expenditures.
3. Risk: There is always the risk that your vehicles will be involved in an accident or that your cargo will be damaged or lost. This would likely lead to financial losses and reputational damage.
4. Complexity: Managing a shipping fleet can be complex, especially if you have multiple vehicles and drivers. You will need to have a system in place for scheduling, routing, and tracking shipments.
5. Depreciation: Over time, trucks and shipping infrastructure will deteriorate in quality and decrease in value due to the natural effects of wear and tear.
6. Driver Shortage: The trucking industry is currently facing a driver shortage, which can make it difficult to find qualified drivers for your fleet. This can lead to delays and increased costs.

Advantages of Subcontracting Shipping Services from a Freight Broker:

1. Cost-effectiveness: Subcontracting shipping services can be more cost-effective than owning your own fleet. This means you will not need to purchase or lease vehicles, hire and train drivers, or pay for fuel, maintenance, and insurance.
2. Flexibility: Freight brokers can provide you with a wide range of shipping options, including different types of vehicles, routes, and pricing. This is a great way to help you meet your specific needs without having to invest in your own fleet.
3. Expertise: Freight brokers have the expertise to help you choose the best shipping option for your needs. They can also help you track your shipments and resolve any problems that may arise.

1. Scalability: Freight brokers can easily scale their services up or down as needed, which can help you meet changing demands. This can be especially important for businesses that experience seasonal fluctuations in shipping volume.

Disadvantages:

1. Control: You will have less control over your shipping operations when you subcontract to a freight broker. However, this can also look like an advantage when you need to concentrate your efforts on other parts of the business.
2. Reliability: The reliability of a freight broker can vary, so it is important to choose a reputable company. If you choose an unreliable freight broker, your shipments may be delayed or damaged.
3. Communication: Good communication is always a big challenge from both sides of the equation. An effective freight broker should be in constant communication to ensure that your shipments are handled properly. Consequently, a lack of communication can lead to problems.

For large, well-structured companies with specialized services, having their fleet can be better. For smaller companies, it’s not.

In conclusion, having your own fleet or contracting freight broker services have advantages and disadvantages, regardless of the company’s size. If a company has its loads planned, knows its routes, and they are always predictable, having your own fleet can be an excellent option to ensure total control over operations and optimize costs in the long term. However, when last-minute loads arise, or all owned trucks are busy, freight broker services offer an advantage by providing access to a vast network of carriers and give you the flexibility to meet market demands.

It is essential to recognize that there is no one-size-fits-all solution for all companies. The decision between having your own fleet or using freight broker services should be based on carefully analyzing your specific needs, risks, and available resources. Ultimately, the most important thing is to balance operational control, financial efficiency, and responsiveness to market demands to ensure long-term success in managing the company’s logistics.