Private Carrier
Also known as: Private Fleet, In-House Fleet, Proprietary Fleet
Definition
A private carrier uses company-owned or leased trucks to move their own products. Think Walmart, Coca-Cola, or Sysco trucks—they’re not hauling freight for others, just their own merchandise.
Private vs. For-Hire Carriers
| Private Carrier | For-Hire Carrier |
|---|---|
| Own goods only | Any shipper’s goods |
| No operating authority needed | FMCSA authority required |
| Company drivers | May use owner-operators |
| Fleet is cost center | Fleet generates revenue |
| Full control | Service variability |
Why Companies Go Private
Control:
- Schedule flexibility
- Service quality
- Brand representation
- Customer relationship
Economics:
- High volume efficiency
- Backhaul revenue potential
- Predictable capacity
- Avoid spot market spikes
Private Fleet Challenges
- Capital investment (trucks, trailers)
- Driver recruitment and retention
- Maintenance costs
- Deadhead/empty miles
- Regulatory compliance
- Management complexity
Hybrid Approaches
Many companies use both:
- Private fleet for core routes
- For-hire carriers for overflow
- Dedicated contract for specific lanes
- Spot market for surge demand
Private Fleet Economics
Break-even typically requires:
- High volume
- Dense route network
- Good backhaul opportunities
- Strong driver management
Regulatory Requirements
Private carriers must still:
- Comply with FMCSA safety rules
- Maintain driver qualifications
- Follow hours-of-service rules
- Keep equipment maintained
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