Fontana: Is it time to switch to a dedicated transportation model?

Rising trucking costs, compliance concerns, and fleet management challenges are prompting private fleet operators to consider dedicated transportation models.

Key takeaways

  • Private fleets face rising costs, driver challenges, regulations, and technology demands that impact operations.
  • ATRI found trucking costs reached a record $2.336 per mile in 2025, increasing pressure on fleets.
  • Dedicated contract carriage can provide predictable costs, dedicated resources, and improved operational visibility.

Private fleets exist across a wide breadth of industries, from food and grocery to retail products, fuels and lubricants, and more. Companies operate private fleets for a variety of reasons, including the belief that doing so gives them more control over the transportation function. By operating their own fleet, they feel they can provide exceptional customer service.

But I can’t help but wonder how those business owners—whose primary business is not trucking—deal with the big challenges all fleets face. These include driver recruiting and retention, salary and benefits, insurance costs, the threat of nuclear verdicts, rising fuel costs, technology upgrades, and the ever-changing regulatory environment.

The American Transportation Research Institute (ATRI) recently released the Analysis of the Operational Costs of Trucking: 2026 Update, which found that in 2025 the average operational cost of trucking rose from $2.260 per mile in 2024 to $2.336 per mile, a record high. Keep in mind that, while the report came out in 2026, the increase reflects what happened in 2025 and does not take into account the volatile fuel prices we’ve seen this year, which means that it is likely to cost even more to operate a truck in 2026.

Now might be a good time for businesses operating private fleets to consider dedicated contract carriage as an alternative. The right dedicated contract carrier provides predictable, consistent, and reliable service. When you switch to a dedicated model, you get more predictable transportation costs, plus equipment and drivers solely dedicated to your account. In addition, a dedicated transportation provider will lower your liability exposure and help ensure that you are compliant with all regulations.

When you partner with the right dedicated transportation provider, you can expect real-time visibility and actionable insights across your company’s operations. This includes real-time route and vehicle tracking across active loads, which allows for accurate ETAs so your customers will know exactly when their loads will be delivered.

A dedicated contract carrier will work with you to customize a program that meets your needs, including setting up specific standard operating procedures that are unique to your operation and that ensure you maintain control over the transportation function.

With all the complexity of moving freight—financial, regulatory, and technological—switching to a dedicated transportation model will allow you to maintain control over the transportation function but will alleviate the worries and allow you to focus on your core business.

About the Author

Gino Fontana

Chief operating officer and executive vice president at Transervice Logistics Inc.

Gino Fontana, CTP, is COO and EVP at Transervice Logistics Inc. His operational expertise emphasizes cost savings, process efficiency and improvement, superior quality, and people management skills. He has more than 35 years of experience in the transportation and logistics industry with both operational and sales experience.

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