Every mile costs more for private carriers

Private fleet operators are grappling with relentless cost increases across fuel, equipment, labor, and insurance, forcing them to rethink operations. From route optimization and backhaul strategies to newer trucks and tech upgrades, carriers are doubling down on efficiency to offset rising expenses. Industry leaders say private fleets have some insulation from for-hire market volatility but must still balance costs against improving freight rates. New EPA emissions rules are also pushing up truck costs, prompting fleets and suppliers to invest in maintenance, safety, and fuel-efficiency tech. The economic slowdown that began in late 2022 hit both for-hire and private carriers hard, with the cost to operate a for-hire truck hitting a record $2.34 per mile last year, according to the American Transportation Research Institute. While private fleets share many line-item expenses with for-hire operators—tires, fuel, registration fees, tolls—they’re less exposed to insurance spikes, driver turnover, and spot-market swings. As for-hire pricing climbs in 2026, the question remains: when will higher rates justify shifting cargo back to private trucks? The industry has long balanced this private versus for-hire equilibrium. Shippers are now adopting blended, actively managed frameworks, continuously re-optimizing their mix as costs like wages, rates, insurance, and EPA compliance fluctuate independently. Driver retention is critical, with private fleets turning to apprenticeship programs, mentorship, and mental health support to curb turnover. Walmart, the top-ranked private carrier on the Transport Topics Top 100 list, offers annual driver pay exceeding $100,000 through its associate-to-driver program, which trains warehouse and store workers to earn commercial licenses. Sysco, ranked third on the list, also runs a long-standing driver recruitment and training initiative. Network optimization is another key focus. US Foods, a food service giant ranked fifth on the TT100 list, slashed nearly 4.9 million total miles driven since 2022 despite delivery growth, crediting route planning software from Descartes for a 2% annual reduction in miles driven alone. The company cited routing optimization and rightsizing vehicles by route type as critical to fuel savings, emissions cuts, and risk management in its 2025 sustainability report.