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How Much Can You Make Owning a Logistics Company?

Logistics Business

As of July 26, 2022, the average annual pay for an owner of a logistics company in the United States is $199,616 a year. This works out to be approximately $95.97 an hour, the equivalent of $3,839/week or $16,635/month.

Although some logistics company owners earn as high as $382,500 and as low as $41,500, the majority of their salaries mainly range around $113,000 to $276,000, with top earners making $358,500 annually across the United States. With transport business opportunities emerging globally nowadays, transportation is becoming the biggest industry in the world.

Have it in mind that different types of demands have inculcated various innovative and profitable start-up opportunities in the transport industry. However, the success of these companies depends on the education and efficiency of their employees.

According to statistics, “the global logistics market was worth 10.32 Billion USD in 2017 and it is expected to exceed 12.68 Billion USD by 2023 with a CAGR (compound annual growth rate) of 3.49% between 2017 and 2023.” Experts note that the reasons for this predicted growth are an increase in global trade activities in developing economies, a rise in trade-related agreements, and advancements in information technology and transportation.

The Asia Pacific region is expected to emerge as the leader of the global logistics market in the future, but the United States is not far behind. Presently, the U.S. is renowned as one of the top ten leading global logistics markets and is the third-highest market in the world for third-party logistics (3PL) companies.

As of 2018, transportation and material moving in the United States accounted for 7.1% of all jobs, employing one of the massive workforces in the country, topped only by food service, sales related occupations, and administrative careers.

Note that this number is expected to grow another 6% by 2026. Don’t forget that logistics is a complex industry, requiring attention to detail and the ability to retain a large amount of knowledge about the field.

Note that the steady growth of this industry will entail logisticians to excel in a fast-paced, competitive environment. In this lucrative and never boring industry, those with ambition and tenacity will find themselves with enormous opportunities for career satisfaction and financial success.

Factors That Will Influence Your Income as the Owner of a Logistics Company

Note that the logistics company is one of the most lucrative transportation businesses to start with moderate capital investment. As the owner of a logistics company, many of the challenges faced by your company are actually within your control. Nonetheless, here are various factors that can dictate and influence the amount of money you take home.

  1. Business Niche

Aside from the fact that it is quite challenging to compete as a generalist, the niche you choose to focus on will dictate the amount of money your company makes. Choosing your niche entails identifying your target audience and the service(s) you offer. Here are some of the categories of transport businesses you can choose from:

  • Personal transport. These are companies that cater to individuals or small groups, like taxi companies or limousine rentals.
  • Local transport. Consumer goods, materials, livestock, and more tend to align under this category.
  • International transport. Note that this refers to the transport of all categories but at a global scale. Companies that pick international transport more or less offer air-based delivery or sea shipping.
  1. Business Expenses

Have it in mind that analyzing and understanding your business’ finances boost your chances of success and also help you understand the amount of profit your business makes. Additionally, you will have to find out how to fund your company.

Are you planning to bootstrap? Apply for an unsecured business loan? Or ask for financial assistance from angel investors?

Note that Small Business Administration is a wonderful resource for both small business owners and aspiring entrepreneurs. However, before you apply for a loan, ensure to establish a comprehensive business plan since many lenders ask to review your plan before approving your loan application.

In addition, you will want to consider the expenses associated with managing a transport and logistics business, including fuel prices, maintenance costs, license and toll fees, insurance, and hiring and training fees. You might also have to invest in an enclosed parking space when your vehicles are off the road, as well as safety features like CCTVS monitoring, alarms, dash cams, etc.

  1. Business Tools

Owing to today’s technological advancements, you don’t have to run your transport and logistics business manually. Have it in mind that every successful business owner understands how important it is to steadily boost transport management to stand out from the competition.

One of the ways to do so is to leverage a reliable internal knowledge base and transport management software. Indeed, good software allows business owners to keep all data related to transport operations in one area. Also note that it could track shipment scheduling, including the cargo, driver, and fuel usage. This information allows business owners to save time, money, and effort.

  1. Business Budget

The cost of managing a transport and logistics business will depend on the niche you choose. For example, running a taxi company with three vehicles is cheaper than a bigger logistics fleet with 20 delivery trucks. However, irrespective of the size of your company, you can plan for these expenses. It’s crucial to understand your budget, goals, and benchmarks. Here are some of the things you need to consider:

  • The amount of revenue you need to maintain operations
  • The amount of money you need to invest in advertising and marketing
  • How much do you invest in manpower, supplies, and equipment
  • The amount of debt your business has in expenses and loans
  1. Rate

Also, note that the rate you charge will influence the profit you’re going to make. It should be adequate enough to cover your expenses and ensure profit. Note that if you set your rate too high without a basis, you can lose good customers to your competitors.

This is why it’s very crucial to analyze your finances, understand your expenses, and conduct market research. In addition, it is also vital to note that other companies offer the same services as your logistics company, not to mention competing with brokers with enticing offers.

If you intend to increase your price, always make sure to offer extra value that your customers will enjoy, like expedited shipping or a tracking app. Here are some of the factors you need to consider when determining the right rate:

  • Type of goods transported
  • Shipping method used
  • Distances and time
  • Shipping routes
  • Insurance
  • Type of transportation
  • Weight of the goods
  • Added value


Running a transport and logistics business can definitely be profitable. Logistics companies are involved in moving consignment and shipment from one destination to another, can be local, or even international. The sales world has evolved rapidly in the last decade, and this will only continue.

To succeed and make more money as the owner of a logistics company, ensure to stay on top of current trends and technologies that can streamline your sales pipeline, improve your closing strategy, or make more sense of sales analytics. A proactive approach is what differentiates the best from the rest!