Landstar and rates for independent carriers

Discussion in 'Freight Broker Forum' started by Skate-Board, Sep 25, 2014.

  1. Skate-Board

    Skate-Board Road Train Member

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    I have my own authority and pull lots of loads for Landstar. In the past few months I've noticed a massive change in rates. As an example, the load I'm hauling right now pays $3,500 and Landstar was paying $3,040. These are rates that were listed in plain view for anyone to see on the loadboards. I'm seeing this going on left and right with them. They must have sent out a memo to everyone trying to increase their profits. This can't be good for their agents which are all independent also.

    Some agents will have the balls to say this is all the customer is paying even though other brokers are listing it for much more. When I say, that not true, Trinity or whoever is paying $500 more then they hang up on me.
     
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  3. double yellow

    double yellow Road Train Member

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    Noticed it too. Can usually negotiate up, but I prefer to just use the competing brokers. Haven't been impressed with Landstar in general.
     
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  4. blairandgretchen

    blairandgretchen Road Train Member

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    Interesting. Subscribed.
    Where is the other $460 going and why - and why the hang-ups?
     
  5. Skate-Board

    Skate-Board Road Train Member

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    I had lots of loads going from OH to SC for $2,500 then I would take steel from Nucor back up. Then all of a sudden the rate dropped to $1,800. Next thing I see is another broker doing the loads. I'm guessing Landstar could not cover the loads so the shipper threw them out.
     
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  6. jbatmick

    jbatmick Road Train Member

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    I bet the shipper got a lower price from the $1800 broker. That is why Landstar got kicked out.
     
  7. Skate-Board

    Skate-Board Road Train Member

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    Could be but most of the time it's because the broker isn't moving the loads because they are too greedy. I have a friend who is a broker. She moves 12 loads a day from this one shipper going to the same place. Instead of trying to make a killing she makes $50 off each load. She now has them all covered every single day 7 days a week by the same guys. She does pretty much does nothing and everyone is happy
     
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  8. jbatmick

    jbatmick Road Train Member

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    Well , if Landstar had trouble moving them at 2500 bucks, the new broker is going to have more trouble covering tham at $1800.
     
  9. ruffrider

    ruffrider Light Load Member

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    I've also seen LS be cheaper on their own loadboard than having it listed on ITS thru LS. Go figure. That's why I check all loadboards looking at the same load.
     
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  10. Pahrump

    Pahrump Medium Load Member

    Most likely the Landstar agent is taking a bigger cut,,
    When a Landstar agents loads a Landstar truck he gets 7% of 98% of gross revenue from the load as commission,when he brokers the load he get 50% of the difference between the revenue and what he agrees to be paid to the broker truck

    For example Widget Inc ships a load and pays Landstar $1,000 the agent gets $68.60 the Landstar truck gets $735.
    Now if the agent brokers the load he can pay what ever the broker truck will agree to,,if he brokers it for $600, then the agent gets $190 commisision,,
    General rule of thumb with most agents is broker loads pay 80% OF 98% of the revenue,,more pay to the broker truck than the landstar truck,
    I had a couple agents always paid me 85 to 90% no dickering,,and then some who always offered on 50% of the revenue

    I had an agents pass word to their load board for a few years,,
    Their board for their drivers always shows the gross revenue,(have to do this to keep agents from cheating landstar drivers)
    Know how much landstar was getting on the load I was always able to get a better deal,,Agent hated it when they offered me $3000 and I would tell them I knew they were getting $8000,,,the most dishonest agents of all companies and brokers I dealt with were Landstar agents,,had a few good honest ones but most were no good,,
    Watch the load boards many landstar agents get their loads off load boards,,try to find the broker they get the loads from and many times you can get more than they were offering the loads to landstar for,,Landstar is not a good company,
     
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  11. hawkjr

    hawkjr Road Train Member

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    Majority of the Agents at Landstar don't have contract freight or direct freight. Quite a few are "copy & paste" agents. Usually on our board we'll see the load posted 2 or more times for different amounts.

    My guess is your dealing with a copy & paste agent over here. I see it alot as well too. Majority of our direct freight stays intact with the same rate & all, FSC sometimes flexs but overall stays the same.

    And I've had two different agents have a bidding war over my services for a load that they didn't even have yet so I doubt if LS sent out a memo of any sorts

    There's one agent who flexs the rate up and down for Coke loads outta Hattiesburg. It's not a direct load and he just flexs it week by week. Is he bidding? Idk but he does every week.

    You gotta a agency code?? I could tell you off top if they're a real agency or a home agent?
     
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