It would be good to sit down with you sometime, Nomad.


I recall the conversation, rank. I was told by Landstar that they pay broker carriers 80% and BCO's with their own trailer 73% (or 75% depending on how you figure it). You don't know for sure unless you see the actual bills. I have also heard that they pay the BCO's more. It would make sense that they would pay broker carriers more, since they pay their own insurance. I it may depend on the agent.



Landstar will not allow you to run under your authority while you are leased to them. You can broker loads through them if you have your own authority. Most carriers will not allow you to use your authority and be leased to them at the same time.

 

I had the opportunity, in 2004, of spending a weekend layed over in LA, with a couple pretty decent LS BCO's. They sat in the restaruant with me for about 4 hours on the saturday afternoon of that weekend, and showed me how the LandStar system works. Seeing the rates posted for loads available to O/O's working for LandStar, and knowing the rate of the LandStar broker load I was picking up on the following monday AM, I was shocked. That same load that I was going to pull from the LS brokerage, was available to an LS operator for an additional $650.00. I would have loved to have the extra $$ for the checkbook...but we got a rate that was comfortable enough. We did not lose money on the turn. I found that most times, whether it was an LTL or full load, LS always gave us a fair rate on brokered loads, and always had our money to us in 12 days on a faxed BOL and Invoice.

The packet I have sitting here, tells me that if I lease into them, my tractor will receive 67 1/2% of 98% of the load revenue, plus 100% of fuels surcharge, and 100% of extra item charges, if I pull a LandStar Van.
If I choose to rent one of their flatbed or stepdeck trailers, then the to the truck rate goes to 75% of 98%.

The packet also lays out what surcharges I can expect to pay, as well as what services I would be encouraged to participate in....The biggest being the Maintenance account.

Right now I am still considering 3 tanker companies along with LandStar.


:moose:

 

That's called being LS approved....but you're not leased and you don't get the same rate.

I do. If you were leased to LS, you got $2900 from Dayton to Oshawa two weeks ago. If you were an "LS Approved" independant you got $2350. We had to buy our permits...don't know who buys the permits for the leased guys.

 

Dejan, how's your buddy do that pulls only CHR loads? I'm sure he has the option to pull loads from somebody else. I was just looking over CHR's program and in order to be the type of carrier that would be dedicated to them you have to supply more than most small O/O's can. But I would be curious to hear how he does pulling exclusively for them.

 

Rank, when you look at the rates posted on the Landstar BCO board, they are gross rates, not what the truck makes. If the number you noted was what was listed, then that is not what the BCO or owner operator makes. You will need to do some mulitplication to find what the load actually paid the owner operator or BCO.

Whether it is Landstar, C. H. Robinson or any other broker, you can haul as much or little for them as you choose. If you haul a lot for a particular agent you may get offered better paying loads, once you prove yourself. Keep in mind that most agents or brokers may not give you their best paying loads until you prove yourself. I have met a couple of independents who primarily haul C. H. Robinson. They seem to be doing well.

You will need to pay for your base plates and permits if you lease to Landstar. The main difference is that you can pay for your base plates and permits weekly out of your settlements. They will advance the money to buy base plates and permits, but you will pay about $75/week until the money is paid back. A lot of owner operators find it difficult to come up with $2,000 or more at one time for base plates and permits. Landstar plates in Illinois, as do a number of other carriers. I would count on $2,000-2,200. I can buy my own in my home state for about $500 less. You pay a premium for them getting the plates for you.

 

Yeah, the loads were posted at $4000 IIRC. $4000 x 75% x 98% = $2900 and $2900 is what the LS driver on the jobsite said he was getting so the numbers jive.

True, I didn't have to take the loads at $2350, but that was $5/mile ($2.50 for all miles after I deadheaded back). Not saying I was treated unfairly because I wasn't....just saying the leased guys seem to get offered more. $550 more.

 

That is a lot of difference in money, Rank. I have spoken to some who have told me that they got much more than the owner operators with Landstar. It may have as much to do with the agent as anything else.