Should you buy trucks or hire a trucking company?
Gateway Distribution helps Wisconsin businesses make the right choice for hub-and-spoke distribution.
Your shipping volume is climbing and you're wondering if it's time to buy your own trucks. The monthly freight bills keep growing, but truck payments, insurance, and driver wages sound expensive too. You need to know which option actually costs less in Wisconsin's competitive freight market.
Most businesses face this decision when they hit 15-20 shipments per month. Buying trucks means truck payments, commercial insurance, maintenance costs, driver wages, and DOT compliance requirements. Hiring a trucking company means paying per shipment but no fixed overhead or regulatory headaches.
The math usually favors outsourcing until you reach 40+ consistent loads monthly. A new truck costs $150,000-$200,000, plus $80,000-$100,000 yearly for a qualified driver. Insurance runs $12,000-$15,000 annually per truck in Wisconsin. Maintenance and fuel add another $15,000-$20,000 yearly. That's roughly $107,000-$135,000 in annual fixed costs per truck.
Calculate your total shipping costs for the past year, then divide by 12 for your monthly average. If you're spending less than $9,000-$11,000 monthly on freight, outsourcing probably saves money. Gateway Distribution can review your shipping patterns and provide exact cost comparisons for hub-and-spoke distribution from our regional hubs.
Once you know the real numbers, the choice becomes clear. You'll either save money with your current freight arrangement or have solid justification for buying trucks. Either way, you'll stop wondering and start planning with confidence.
Other things people in Wisconsin 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 Wisconsin and the area around it.