Buy trucks or hire a trucking company?
The real costs of each option for South Dakota businesses from Gateway Distribution.
Your shipping volume is growing across South Dakota. Buying trucks and hiring drivers sounds expensive, but so does paying freight companies every month. You need to know which option costs less long-term and fits your business better.
Most South Dakota businesses face this choice when they hit 15-20 shipments per month. Truck ownership means payments, insurance, maintenance, driver wages, and DOT compliance costs. Hiring trucking companies means per-shipment fees but no fixed overhead. The breakeven point depends on your shipping consistency and routes.
Owning trucks typically costs $8,000-12,000 per month per truck including all expenses. Hiring freight companies runs $200-800 per shipment depending on distance and cargo type. If you ship less than 40 loads monthly, outsourcing usually costs less. Variable shipping volumes favor hired trucks since you only pay when you ship.
Calculate your total cost of ownership first. Include truck payments, fuel, insurance, maintenance, driver wages, benefits, and compliance costs. Compare this to your current freight bills multiplied by 12 months. Gateway Distribution can provide shipping cost estimates for your South Dakota routes to help with this comparison.
Once you know the real numbers, you can make the right choice for your business. Companies with consistent high volume often benefit from owned trucks. Those with seasonal or unpredictable shipping save money with freight companies and avoid the headaches of fleet management.
Other things people in South Dakota ask
freight shipping transit times
LTL typically takes 2-5 business days depending on distance. Full truckload is usually 1-3 days. Expedited can be next day. Weather, holidays, and freight class affect timing. Get a transit time estimate in writing before you book.
how long does hub and spoke shipping take
Hub and spoke adds 1-2 days compared to direct shipping but costs significantly less. Your freight gets consolidated at the hub then moves on optimized routes. Good for non-urgent shipments where cost matters more than speed.
when to book freight shipping
Book LTL 1-2 days ahead for standard service. Full truckload needs 2-5 days notice depending on season. Peak seasons (harvest, back-to-school, holidays) require more lead time. Expedited services can often pick up same day.
Ready to talk?
Gateway Distribution handles hub-and-spoke distribution in South Dakota and the area around it.