Should I handle shipping myself or hire a freight company?

Your shipping costs are adding up, and you're wondering if buying your own truck makes sense. The numbers look tempting, but you're not sure what you're missing. Utah businesses face this decision when freight bills start hitting their bottom line hard.

The break-even point depends on how often you ship the same routes. Own trucks make financial sense when you ship identical routes three or more times per week, every week. Below that frequency, you're paying for a truck that sits idle while still covering insurance, maintenance, and driver wages.

Factor in the hidden costs most businesses miss. Driver wages run $55,000-70,000 annually in Utah. Commercial truck insurance averages $8,000-12,000 per year. Maintenance, fuel, and unexpected breakdowns add another $15,000-25,000. A reliable used truck costs $80,000-120,000 upfront. Most businesses hit the break-even point around 50+ shipments per month on consistent routes.

Start by tracking your shipping patterns for three months. Count how many times you ship the same route each week. If it's less than three times weekly, stick with freight companies. For higher volumes on consistent routes, get quotes for truck purchases, insurance, and driver hiring. Gateway Distribution offers backhaul logistics that can cut your freight costs by 20-30% while you decide.

Once you know your shipping patterns, the decision becomes clear. You'll either save money with your own fleet or realize freight companies handle the complexity while you focus on your core business. Either way, you'll stop wondering about the math.

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