Leasing onto a company... take Landstar for example.. how is the low rates worth it?

Discussion in 'Ask An Owner Operator' started by freightwipper, Sep 18, 2014.

  1. freightwipper

    freightwipper Road Train Member

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    Data is from what I've seen, please correct me if I'm wrong.

    Right now the "average rate" for Dry Van is $1.50 a miles plus fuel surcharge at about $0.50 a mile according to here http://www.dat.com/Resources/Trendlines/Van/National-Rates.aspx

    If you take one of Landstar's trailers you get 65% of the load plus full fuel surcharge last I've seen.

    estimating.. that leaves you at $0.98 + $0.50 fuel surcharge = $1.48

    fuel in of itself will cost you around $0.60 a mile, that leaves you at $0.88 before paying for all other expenses (including YOUR TRUCK), maintenance and paying yourself.

    I just don't see how you can come out much ahead if at all than compared to if you were just a company driver getting .40-.45 CPM with no expenses.

    Am I far off in my estimating here? If not why do people do it? Having all that risk, responsibility and more work just to make around the same as a company driver?

    Doesn't make sense in my opinion, just seems like leasing onto a company is you being a company driver with your own truck and worries to deal with and figure out. :biggrin_25513:
     
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  3. skateboardman

    skateboardman Road Train Member

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    its simple, you don't pull loads for the avg. you have to remember an avg has loads above and below that mark.

    example at my carrier they basically tell you the fleet avg for all miles is like 1.72 , that means many are above and many are below. its all about the choices you make on loads. if ya take loads to bad areas with little reload possibilities, you deadhead out.

    the fact of being able to make those choices is why many own their own truck , they accept the responsibility and additional effort in order to be able to make those choices, and not just get told what to do.

    some folks just simply aren't cut out for it.
     
  4. hawkjr

    hawkjr Road Train Member

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    Some guys are just to stupid to pick & choice their own freight. I'm averaging around $1.80 a mile last I check after LS cut on Van. I don't run no more than 2200 miles a week. I choose to work smarter not harder. And I could probably do better if Weekends home wasn't an priority for me.

    Companies like LS, Mercer, SNI Choice gives you opportunities to make more than "your average" it's up to you if you want to do it or not.

    I also like working for LS because they don't tell me when & where I have to run. And they also don't tell me I have to drive an 60 mph to achieve "Fuel Mileage Goals"
     
  5. ATX

    ATX Light Load Member

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    Also, within those numbers you are also actually building equity in the truck. Once it's paid for, your net increases accordingly. And, yes, you do need a chunk of money in reserve for repairs, etc.
     
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  6. Richter

    Richter Road Train Member

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    A good river can beet the estimates you used, but even assuming .88. When i was at LS, main cost me .10/mile, insurance, tags, permits, etc cost me .06/mile. So, .88- .16 = .72 which is way more then an average company driver. Also, FSC varies based on area at LS. some add on emergancy fuel surcharge for cetain states.
     
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  7. kemosabi49

    kemosabi49 Trucker Forum STAFF Staff Member

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    I ran dry van for LS and I can tell you if you have to rely on the load board, it can be tough. I started out with a lot of loads off the board but after a while, and with some tips from the old hands, I developed and pretty good list of agents to call in the different parts of the country I ran. The loads paid well and most of them never were posted on the board. A good domicile agent will help too. I only left because of personal issues at the time. I wouldn't recommend them to everyone but they were good for me.
     
  8. blairandgretchen

    blairandgretchen Road Train Member

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    Thanks for the input from all here. The OP question represents my "glass half empty" thinking about LS, the replies are reflecting my "glass half full" thinking.

    I was angling toward flatbed because of the better rates, and a cheap truck and trailer to lower overheads to stack the deck in my favor a bit better. I anticipate a learning curve like kemosabi mentioned, and have the same weekly average in mind that hawkjr quoted.

    Overall, I like the system for the choice aspect. I've grown tired of running lots of miles, and being told what to do.

    Good thread, questions and answers.
     
    fordconvert, albert l and 281ric Thank this.
  9. thelushlarry

    thelushlarry Road Train Member

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    When you are right you are not wrong!:biggrin_25520:
     
  10. Cetane+

    Cetane+ Road Train Member

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    The best answer is, you lease on to a carrier because you dont know how "things" work yet. Run with them up to 6 months. Then you will know where and how to get good "loads". Apply for your authority, insurance, and get on the horn and start knocking down doors. Keep that 20% you were loosing before.
     
  11. walterjacobo15

    walterjacobo15 Light Load Member

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    Where you wanna be?
    There's people in trucking doing much less than .30CPM a few others making a killing bringing home over 250k a year... Where you wanna be? In this business as in many others, the sky is the limit. How much you can make is up to you.
     
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