I was talking to a Landstar contractor last night, excuse me, "BCO". I got corrected on that one a couple of times. Anyway, this guy was telling me about how he had sat for a few days and was finally just going to dead head about 200 miles to where a load was.
Now, I'm not poking or being derogatory here, really. I'm just interested as a guy who might be leaving the company I'm leased to this summer. If Landstar doesn't dispatch you, but rather let you use their load boards, agents, and customers, but at the same time let a guy with his own authority become an authorized carrier for Landstar and pull off the same board and use the same agents, then what's the point?
I have heard of people using Schneider's loadboard as an authorized carrier. I have seen that Werner has a brokerage service. I heard a guy even say that he's pulled some real nice paying loads through the J.B. Hunt load board.
So my thinking was, here this guy is leased to Landstar, and it doesn't have to be Landstar. I'm really not trying to pick on anyone, it was just who I talked to last night. I know next to nothing about them. Hell, it could be the company I'm leased to if we didn't haul our own stuff. But anyway, here is this contractor, BCO, whatever, leased to a company that gives you a pretty good amount of freedom to do what you like. If he had his own authority, he could've looked for loads in a lot of other places. If he wanted to deal mostly with Landstar, he could do it to build relationships, but if he got stuck the way he did last night, he could go to Internet Truck Stop, TranscoreDAT, JB, Schneider, Werner, or who knows who else?
I had thought about looking into Landstar at one point, but why lease to them if you can have your own authority and still pull for them? Wouldn't that leave you open for more things, just in case?
I gotta be missing something here. I have friends who I really respect with their own numbers who keep telling me, "When you're done screwing around and getting robbed being leased on to a company, get your own numbers and a trailer and come talk to me." Or the ever popular, "Son, when are you going to learn that you make your money with a trailer and not the tractor?"
I dunno, I've been with the carrier I'm leased to since '96 but they have been really ticking me off lately and I'm trying to explore options. I had thought Landstar sounded alright because the problem I'm having now is forced dispatch in a supposed no-force dispatch system.
So.....what's the advantage to being leased on to these companies that will let a guy come in as an authorized carrier and pull freight????
What's the Point in leasing on to a company like Landstar??
Discussion in 'Ask An Owner Operator' started by Paddletrucker, Apr 20, 2010.
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Paddletrucker Medium Load Member
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mostly because most guys don't have enough money to run for a month or two before they start getting checks coming in with their own numbers. I did landstar, I'm no fan. pretty much everyone knows that
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So you think you get the same freight at the same rate? The broker board has maybe 7000 loads listed the company board has 20000 listed. The good stuff never goes to the broker board. (or the company board)
Agents can take as much off the top of the broker loads as the want, they usually go for 80% of billed price. On a 1000 load with 150 being fuel surcharge a BCO with their own trailer would get about 770, a broker truck would get 800 or less.Factor in quick pay and advance charges you are about even. That does not include fuel discounts which today are about .30 less than cash price at Petro and T/Adannythetrucker Thanks this. -
good luck southernpridejacquesi23 Thanks this. -
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Top dollar freight is only good if your costs to do it are low as well. I have no experience with Landstar, only in talking with those that have been or are currently leased on with them. There is a lot of little costs from what I understand. Fee for using a Landstar trailer, etc.
I may not have the greatest deal, but I do have variable freight rates based on length of haul that works out well, considering I prefer to stay in the Upper Midwest. I have relatively cheap physical damage ($60), Cargo liability ($27), and bobtail ($26), get pretty decent discounts on fuel below the cash pump price (sometimes at or above 20 cents a gallon off the cash pump price), and get a better fuel surcharge than most I have seen (adjusted weekly with last week being 31 cents a mile). Those costs I mentioned are the only costs I have with the company I am leased to (oops.. forgot about qualcomm... $10). They pay for my tags (my tags, not theirs) and pay all the fuel tax and ad velorem tax. I do not have to use their insurance, but the cost is good. I stay loaded for the most part. It is a very rare occasion I sit for more than a few hours before I am heading for another load, and usually I am preplanned on something so I don't sit at all. I have a real good working relationship with my "travel agent" and she keeps me loaded and moving. Meanwhile, I dropped 138,000 miles last year and was home virtually every weekend and all holidays. Usually by the house at least once during the week. I could turn down any load I didn't want, but virtually everything is right so that has only happened a couple of times in the last 2 years and I didn't get any static for doing it. I use only company trailers and there is no fee. I can request any load or customer, and if available, will get it. Only rare occasion that I get handed a broker load, but it pays the truck the same.
Some like the challenge of basically doing everything like an independent. Nothing wrong with that. It is all in the numbers though. If it works well, it can be a good thing. Some prefer to be just a company driver that owns a truck. Nothing wrong with that either. I like playing the middle ground. More security like a lease on with some of the big carriers, with a little flexibility like a person on with a company like Landstar. The numbers work well and I am profitable. A guy I worked with at a previous company went with Landstar and seems to like it. I went another direction and stayed with a smaller carrier that would let me have a lot of freedom and had a good customer base and wouldn't take advantage of me like some of the mega carriers sometimes do. -
Paddletrucker is right in that working various boards you have a larger selection. The advantage of ls is they do have some national accounts that have to be loaded on ls trucks. Most of these never get on any board and are usually available only to a select few. -
Hey ;
When did they start hauling high paying freight ?
Many of our agents are dual agents My company / L/S...
Many of our agents will load a L/S truck before they will load me .. Why ???
That L/S truck will pull the same load for less money... This is a fact and has happened to me many times.
The last agent goofed . He thought I was a L/S truck . He told me the load paid $2500.00...... Wow! I said that is funny 20 minutes ago it was paying $3095.00.... I am sure he knew then that he should have asked who I was.
That insurance you mention is not soem great deal. My B-tail is $11.00 per month . I insure my tractor with them and it runs me $27.00 / mo.
$5.00 per load for cargo.
And NO Qual Com to deal with.. -
Paddletrucker Medium Load Member
Thanks folks. As I said, this really wasn't a "should I lease to Landstar" thread. I doubt I ever lease to ANYONE, ever again, unless it was an absolute perfect deal. I certainly didn't really want to start a thread to bash anyone. I just used them as an example because it's the only carrier that I know of that everybody would easily recognize that doesn't really dispatch you. It appears that they let you do your own thing, and that's what I was getting at. Many if the big carriers seem to broker freight to outside carriers. That was the part I was really wondering about.
The guy I talked to owned his own trailer, tractor, and was hammering the phone and the internet all night long trying to line himself up some work. That's why I wondered. I thought it had to be that L.S. took care of his IFTA filings, tags, cheaper insurance, or something like that. When I asked the guy why he leased on and didn't have his own authority, he really didn't have a good answer other than, "Awwww, there's just too much B.S. having your own authority."
Anyway, thanks again. -
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