Private fleets are continuing their decade-long growth trend, with 2024 marking the 10th consecutive year of shipments, freight volume, and value increases, culminating in their control of a quarter of the market share this year, according to the 2024 Benchmarking Survey Report published by the National Private Truck Council (NPTC). Private fleets now handle a record 75% of outbound shipments in the U.S. — the highest percentage ever recorded since the survey’s inception in 2005.

The 2024 survey saw a record 122 companies participating, of which 28% of participants were first-time contributors. The average fleet size among survey respondents increased to 601 power units –  higher than the industry average –  with a total vehicle count of 74,081. Over 44% of respondents reported a net gain in their heavy-duty fleet population, reflecting the sector’s ongoing expansion.

In a webinar, Gary Petty, the president and chief executive officer of NPTC, said that private fleets “have never been stronger” since the 1990s and that most private fleets expect to add drivers and equipment over the next five years. Of the over 2 million registered carriers at the Federal Motor Carrier Safety Administration, 47% are private fleet carriers.

“A number of top corporations in the U.S. have started private fleets from scratch. The most notable and prominent example of that is Procter and Gamble starting its own private fleet after 180 years of not having a private fleet at all,” Petty said. “Dollar General, Chick-fil-A, and Home Depot are other examples.”

Why are private fleets growing?

Cassie Wood, transportation manager at Packing Corporation of America (PCA), and Mkile Schwersenska, general manager at Brakebush Transportation, say private fleets bring significant value to their companies, particularly in cost control, operational efficiency, and customer service.

“At the C suite level, we’ve proven time and time again how important the private fleet is. That’s why they not only didn’t cut us off, but they’re expanding us. They’re giving us more capital today than they ever have before because they see the potential,” said Wood. “Every plant across the PCA network wants a private fleet of its own.”

Tom Moore, executive vice-president of NPTC and the author of the report since 2007, said that while private fleets handle 75% of outbound shipments, the inbound share of freight in the U.S. handled by private fleets has stabilized in the low to mid-30% range, after peaking at 43% during the pandemic. While private fleets continue to dominate outbound logistics, the inbound market is more mixed, with some segments being handled by third-party carriers or vendors.

The benefits of maintaining a private fleet are multifaceted.

For companies like PCA and Brakebush Transportation, the control over the supply chain is not just about ensuring the timely delivery of goods but also about maximizing efficiency and profitability.

“Our biggest value has been found managing our inbound volume because it’s raw material [poultry], so it’s fresh, a perishable commodity that is in-time inventory for our facilities. Visibility is a high priority for us, and that’s where our private fleet has excelled over the years — getting our trucks to those locations to pick up from our suppliers and bring that back into our plants,” Schwersenska said.

Annual mileage drop

Another trend highlighted in the report is the decrease in annual heavy-duty mileage. The average mileage for heavy-duty units has dropped to 85,000 miles per truck, a significant decline that reflects broader shifts in fleet operations.

Several factors contribute to this. For example, many companies – including PCA – decide to open more distribution centers and move closer to their customers. By reducing the distance that goods need to travel, companies can lower their operational costs and increase efficiency.

“PCA’s supply chain model for corrugated products keeps within a 250-mile radius of our customers. That’s why we have over 100 locations scattered across the U.S.,” Wood said. “We’ve really switched to more of the local dedicated driver or even just regional, which would be one that’s going out a little bit further but still home every night or home every other night.”

This shift to local and regional routes not only reduces mileage but also improves driver retention, as more drivers prefer jobs that allow them to be home frequently.

Buying and leasing trends

The 2024 benchmarking report also revealed shifts in buying and leasing practices. There is now a growing preference for leasing, with 60% of heavy-duty units in private fleets now leased, compared to 40% owned. Leased equipment saw a 7% increase since 2023, while purchased equipment grew by 4%. This reflects a focus on flexibility and cost management, since leasing provides access to newer technology and a more predictable cost structure.

About 32% of our NPTC members indicated that they were playing in that rental market, Moore said, explaining that this rental activity reflects companies are dipping their toe in the water with rental units before they commit to going with a purchase or a lease.

“We’ve seen that private fleets looking for quicker trade cycles, the latest technology, and better fuel efficiency are increasingly opting to lease. This predictability in cost, combined with access to advanced safety and fuel-saving technologies, makes leasing an attractive option,” said Jim Lager, executive vice-president of Penske Truck Leasing, that sponsored the NPTC’s 2024 benchmarking report.

Leased fleets also benefit from shorter trade cycles allowing them to stay current with the latest safety and efficiency advancements. While the overall average trade cycle for Class 8 trucks is 6.1 years and 572,000 miles, owned Class 8 trucks tend to have a longer trade cycle, averaging 6.7 years and 630,000 miles.

Maintenance trends: outsourcing on the rise

But as fleets expand and equipment ages, the approach to maintenance is changing, too.

Outsourcing maintenance has seen a rise, with 46% of fleets now spending 90 cents of every maintenance dollar on outsourced services. This shift is driven by the growing complexity of modern vehicles, which require specialized diagnostic tools and expertise that many in-house teams may not possess.

Lager said that Penske has seen private fleets reaching out for partnerships to help manage maintenance, especially as vehicles get older and more technologically advanced. He added that leasing customers, in particular, appreciate the access to professional maintenance services.

Meanwhile, 34% of the respondents in the benchmarking report indicated they continue to invest in the combination of in-house and outsourced maintenance. And 20% of fleets said they stick to in-house maintenance alone.

And while equipment and maintenance issues have become less pressing, the ongoing driver shortage and safety challenges require continuous focus.

Driver-related issues, including recruiting, turnover, and retention, emerged as the top challenge for private fleets, cited by 18% of respondents. Safety concerns, internal staffing issues, and cost factors also posed significant challenges.  

Recruitment

One of the key challenges highlighted in the report is the difficulty in recruiting younger drivers. The average age of private fleet drivers now exceeds 49 years, reflecting a significant gap in attracting talent in their 20s.

“Twenties is hard for recruiting purposes because of experience, right? The private fleets, we require a pretty high level of experience, and in order to have that, it tends to lead to an older driver,” PCA’s Wood explained.

To address this issue, some fleets are implementing in-house recruitment and development programs. Schwersenska added that internal development programs implemented at Brakebush helped reduce the average age of their drivers to around 48 years old.

“We’ve got internal development programs to take folks from our facilities and put them through CDL school if they’re interested. We’ve taken a couple of our technicians, which is always an interesting conversation to have with the shop manager.”

Driver turnover & safety

But driver turnover in private fleets still reached 20.2% in 2024 – and while it is the second time in three years that it’s been over 20% and it exceeds the last year’s rate of 19% – it is still lower than among for-hire carriers, said Moore.

Private fleets still offer competitive compensation, which remains a key factor in retaining drivers, he said. The average driver pay in private fleets is just shy of $90,000, with a maximum driver pay of around $130,000.

According to the report’s estimates, the average cost of turnover for a single driver is approximately $12,000, Moore added. This figure includes expenses related to recruiting, hiring, onboarding, training, and the lost productivity that occurs when a truck is not on the road during the transition period.

Safety also remains a top priority for private fleets, with an increasing focus on reducing accidents and injuries. Private fleets have a DOT recordable accident rate of 2.61 accidents per million miles—three times better than the industry average, the report says.

The report highlights the use of technology, such as telematics and driver assistance systems, as key tools in improving safety outcomes. Respondents also report higher levels of investment in safety training and proactive risk management strategies.

Both PCA and Brakebush Transportation have made significant investments in safety technologies and practices. Schwersenska mentioned the integration of forward-facing cameras and side-view cameras in their trucks to address safety concerns, particularly during adverse weather conditions.

For PCA, safety is also linked to better route planning and operational practices. By focusing on local and regional routes, PCA not only aids in retention but also reduces the likelihood of accidents by limiting long-haul fatigue.

“It’s a job that drivers want, so we don’t see a lot of driver turnover,” Wood said.