Why Small Fleets Are Closing: The Hidden Costs of Operating in 2025

Running a small trucking business—like owning five or ten big trucks that deliver food, clothes, or building supplies—is much harder in 2025 than it used to be. Many small fleets are shutting down, and while you might think high fuel prices or slow business are the only reasons, there are many hidden costs and challenges that are quietly pushing these small companies out of the market. This blog will explain these troubles clearly and in detail, helping you understand why small fleets are struggling and what they’re doing to survive.

What Is a Small Fleet?

• A fleet is a group of trucks owned by a company to move goods.
• A small fleet has between 1 and 20 trucks.
• A large fleet can have hundreds or thousands of trucks.

Small fleets used to be common and successful, but in 2025, the landscape is very different.

The Hidden Costs and Challenges Facing Small Fleets in 2025

1. Rising Fuel Costs: More Expensive Than Ever

• Trucks need diesel fuel, which powers them on the road.
• In 2025, fuel prices are very high—around $5 per gallon or more.
• Big companies buy fuel in huge amounts and get discounts, just like buying in bulk at a store.
• Small fleets buy less fuel and pay full price, making every trip more expensive.
• For example, if a truck uses 500 gallons a week, that adds up to $2,500 weekly just for fuel. If prices rise, small fleets might not keep up because this cost eats up most of their money.

2. Expensive Truck Repairs and Maintenance

• Trucks wear out and break down over time.
• New trucks cost more than $150,000 each, with electric trucks often costing even more upfront.
• Because small fleets often cannot afford new trucks, they keep fixing older trucks, which can become very expensive over time.
• Repairs can include costly engine fixes, new tires, and other parts that can drain savings.
• New government rules now require cleaner, safer trucks. To meet these regulations, fleets might need to upgrade vehicles or buy new equipment, adding to costs.

3. Driver Shortage: Not Enough Truck Drivers

• Truck driving is a tough job that requires long hours and time away from home.
• New rules like electronic logging devices (ELDs) closely track driver hours, making schedules tighter and harder.
• Younger workers increasingly avoid trucking jobs, and many experienced drivers are retiring.
• Big companies offer better pay, bonuses, and benefits, attracting drivers away from small fleets.
• This leaves small fleets struggling to find and keep good drivers, reducing their ability to deliver goods on time.

4. Insurance Costs Are Skyrocketing

• Insurance protects trucks, drivers, and cargo but is increasingly costly.
• Accident rates, cargo theft, and legal claims have driven rates upward.
• Some small fleets pay more than $20,000 per truck annually for insurance.
• Advanced safety technology can reduce costs but is often too expensive for small fleets to install.
• Higher insurance costs eat deeply into tight budgets and can threaten the survival of small trucking companies.

5. New Government Regulations and Compliance Pressures

• The government has introduced more rules on trucking, especially around safety, emissions, and driver work hours.
• Trucks must pollute less and may need to use electric or hybrid technology.
• Electronic logging devices (ELDs) track every minute of driving time to enforce work limits.
• Additional paperwork, taxes, and safety inspections add more stress and costs.
• Large fleets have legal teams and staff just for compliance, while small fleets often struggle to keep up.

6. Big Companies Are Taking Over

• Major companies like UPS, FedEx, and Amazon have massive trucking fleets.
• They can ship goods cheaper by buying fuel in bulk, owning repair shops, and paying drivers better.
• These giants also use robots, AI, and advanced software to plan routes efficiently.
• Small fleets find it hard to compete with these advantages.
• Customers often choose cheaper, faster service from big companies, squeezing small fleets out.

Why Small Fleets Matter

Despite being smaller, these fleets play an important role:

• They support local businesses, like small stores and restaurants.
• They create jobs in smaller towns and rural areas.
• They offer personalized, careful service—like delivering to places big companies might ignore.

When small fleets close, communities suffer from fewer delivery options, higher prices, and lost jobs.

How Small Fleets Are Fighting to Survive

Some small fleets are finding smart ways to keep going:

• Joining forces: Pooling resources with other small fleets to share costs for fuel, repairs, and technology.
• Using technology: Applying digital tools for tracking trucks, fuel efficiency, and scheduling to save money.
• Switching to fuel-efficient or electric trucks where affordable.
• Focusing on niche markets like refrigerated deliveries, special cargo, or local services that big fleets overlook.
• Improving driver retention with better training, schedules, and bonuses to keep good drivers happy.

The Tough Road Ahead

In 2025, small fleet owners face a perfect storm of challenges: soaring fuel costs, expensive repairs, driver shortages, high insurance, complex regulations, and fierce competition from mega-companies. These hidden costs add up quickly, forcing many to shut down.

Yet, the courage and creativity of some small fleets offer hope. By adapting, forming partnerships, and embracing technology, a few may survive and continue delivering essential goods that keep communities thriving.

So next time you see a big truck on the road, remember, it might be a small business risking everything just to keep your town supplied in a world that’s growing tougher every day. Have you ever wondered, “How do they calculate the cost of moving all that freight?” Understanding how freight is calculated is a big part of the challenge for these companies, and it affects whether they can keep delivering the goods your community depends on.

What do you think? Should governments step in to support small trucking companies, or should these businesses find new ways to compete with the big players? Share your thoughts!