Gman, Mike, anyone else who thinks you can become a millionaire in 5 years at Landstar.... 8)

I first heard it maybe in January. I was in Phoenix looking for a load. I got a call about a load, 'Oh boy', and I called back right away. 'I just brokered it out' is what I heard, the first time I knew anything about that. The load boards are lean, lean, lean. Chicken feed in California, the NW and my next destination, Denver. It wasn't like this just last year.

I'm told agents actually make more when they broker out a load than when they give it to a BCO- that's been confirmed more than once. So, my question is this, when did it start? I haven't found a good load going back to the house in over two months! Is this because new Landstar policies have made our selections fewer or has this been going on all along, even back in the days when you could become rich if you could 'think outside the box' :P

BTW, the load I'm taking out of Salem OR, $1.21 all in to the truck in a $3/gal fuel climate. 40k ish on the weight, hazmat, destination Denver! I booked this load 5 days in advance as soon as I got the call. I equivocated at first, but it was better than anthing else I was seeing and I didn't want to get stuck up there.

 

Now that I think about it, I was talking to a guy at the Flying J a few years ago who left Landstar, got his own authority and was still pulling Landstar freight. So, I guess the brokering out has been going on for years. Now, I did hear somebody say that Landstar began 'pushing' the agents to broker out loads last spring.

Right now, the load offerings are terrible compared to last year. It's either due to the economy or it's due to policy changes at Landstar they don't tell us O/Os about, or both. It's like the fsc, apparently they purposely try to keep their guidelines from the O/Os. I just want to know what if anything is due to head office decisions so that I can make decisions of my own. :?

 

Na, it will take at least 6 years. :wink:


I think they were brokering out freight when I was leased to them and that has been several years ago. I have heard stories about the splits and gotten different stories. Some say their brokered freight pays the broker carrier more (80%) while the BCO would get 73%. I think it depends on how much they need to move the load. I can tell you that I am making more per mile running my own authority and dealing with Landstar. Since there has been such a long gap between the time I leased to Landstar and now, I am not sure that it would be a fair comparison. I will tell you that the cheapest load I have taken from them running my authority, at least in the last year, has been $1.85. That was coming out of Florida. That was a very good rate coming out of that area. It was an unusual situation that I could get that rate. I believe everything else I have accepted from them has paid me at least $2/mile. There was one other load, but I don't recall what it paid. It may have paid less. It isn't that I have not been offered much cheaper rates, but I won't take them.

I have been told that Landstar is pushing for more broker carriers to haul their freight. As a broker carrier I can get most of the same benefits as leasing on with them, if I want to take advantage of them. I won't go into all of the details right now, but will if you want to know. The primary advantage I have as a broker carrier over a BCO is that I can go elsewhere to find my loads. As a BCO, you can find your own loads but must run them through an agent. I did that a couple of times when I was leased to them.

I think you have the impression that I think Landstar is the greatest carrier with whom to lease. That isn't necessarily the case. Sometimes a BCO or owner operator is treated like an employee. If you own your equipment and lease to them, you are an independent businessman. One of the negatives about them is their bureaucracy. They have gotten so large that they have become pretty rigid in the way that they deal with their owner operators. I don't care for that part of their business climate. I also think some of their agents skim money off the top before running it through Landstar. Many of their agents have their own brokerage businesses aside from Landstar. In fact, some were in their own brokerage before contracting with Landstar.

This business is about negotiating. When you run on percentage, you have a greater opportunity to negotiate better rates and terms. It is up to the owner operator to decide whether he will run for a rate offered him. With a carrier like Landstar, it is up to you to decide whether to take a load or not. I know of several BCO's who have been leased to Landstar for a number of years. Evidently they are happy with their choice. I have known of some who previously ran their own authority who have gone to Landstar and similar carriers. The main reason is the paperwork.

As a broker carrier, I would like to run more Landstar loads if the price were right. One thing about Landstar is that I don't have to worry about my money being there for me.

If I were to give up my authority I would consider Landstar along with a couple of other carriers. I almost went back with them several years ago. In my situation, I am glad that I didn't. I doubt whether I will give up my authority to lease on to a carrier. It really isn't that much of a hassle dealing with the extra paperwork. Most of it has to be done even if you lease to a carrier anyway. It does cost a bit more for my insurance, but I pay quite a bit less for my base plates and permits by going through my home state. I don't think every driver is cut out to be an owner operator. Nor do I think every owner operator should run their own authority. Some people are just better at the paperwork side of this business than others. Some simply don't want to deal with it. They would prefer to driver and let someone else deal with the paperwork and red tape. It takes all kinds to make this business work. In an ideal situation, I would like to see everyone running their own authority, but that isn't going to happen, nor should it.

 

Cam, you have a couple of things going on right now. First and foremost, the economy has been in a slump for almost a year now. Things haven't come to an abrupt halt, but several industries have slowed, including construction and automotive. Both are critical for the growth of rates and trucking in general. One thing I dislike about Landstar is the way they allow their own agents to compete with one another. When I was leased to them I found 3 agents with the same load, all with different rates. All that does is drive rates down. There is a Landstar agent who now has an account hauling tractors out of Gainesville, GA. She really slashed the rates to get the account and is now having difficulty covering the loads. I saw rates about $0.40-50/mile higher before she got the account. I won't haul for them at the rates they offer. CRST Malone used to get a much better rate from them than Landstar is now getting. I will NEVER haul her freight just on principle. You don't have to give away the farm to get the business. I get and keep business by providing better service, as do others. I won't get into a price war to get or keep an account. Unless an account if profitable, I won't get involved with them. I have had brokers to tell me that they can get something hauled for less than I will haul it. I tell them, fine. Let someone else haul it. I won't haul below a minimum amount. If a shipper or broker can't or won't at least meet my minimum then I will either sit or deadhead out of that area.

 

You're a good sport, Gman! Even as I wrote that I was thinking, 'Man, as much as he helps you, you don't have to be that nasty with him!' :twisted: :lol: :lol: Hey, I've got to work, can you believe that!?! :x I'll be back.

 

That is all right, Cam. If you are having difficulty finding better paying loads, let me know. I will be glad to share a few names with you. Some had good rates when I was leased to them. Just tell me where you want to run.

 

Cam,

Go here (page 2) for one of my Landstar rate dialogues.
http://www.classadrivers.com/phpBB2/...r=asc&start=15

 

I just got a call from Landstar and hauling a load 2800 miles for $1.50 per mile.

Actually it's $1.62 per mile but I have to deadhead 200 miles to get it.

 

How about this one?

It's a full truckload, $.87 x .65= .55/mile. What do you think, should I take it? I wonder why it doesn't tell the weight... :?

 

Yeah, see, it's your damn fault I'm starving to death!!! 8)