Landstar Questions

Um, No. Not even close.

 

It's a three year lease, but can be terminated by either party at any time for any reason.

 

I should add, as I see you're poking around trying to learn more about being an O/O, the purpose of a lease when subcontracting to a motor carrier, is to legally cede control of the equipment to the carrier and spell out compensation. Most people are only familiar with leases when it comes to apartments or buying a car.

 

I am coming over to Landstar after years at Panther. I subscribe to the 80/180 rule and hope/expect it to hold true at Landstar. If I could keep my costs per mile at 80 cents or lower and keep my revenue to the truck at $1.80 per mile or higher including fuel surcharge then I was rock and rolling. At Panther I ran a lot to Canada, not sure I will do the same at Landstar as the borders can be a pain in the arse. But I might. Keeping my costs at 80 cents ain't easy. I own my own truck outright but that doesn't mean you can forget about replacement cost. Trucks will eventually wear out and need replacement. 7 cents per mile for that. Repairs. I put aside another 7 cents per mile for that. Fuel. Usually 40-50 cents per mile. Insurance, licensing, permits, irs 2290, ifta, etc etc. About 19 cents per mile for the rest. I drive 63 miles per hour for optimal fuel economy and I try to pull light loads but i'll pull heavy loads that pay and have no problem doing so. Other than Canada I try to stay where there are few tolls. Its tough to stay under 80 cents per mile cost but that is my goal. Revenue of $1.80 per mile after LS's cut does not appear to be a problem based on what I am reading on the landstar boards but at $1 per mile profit and based on 100k annual miles I am happy putting $100k in my pocket b4 per diem. Success is about running your business competently and efficiently. The driving is the easy part. Shaving a penny from your costs is the same to your bottom line as gaining a penny in revenue. I always shake my head when I'm passed by a truck doing 80 mph. Company trucks are mostly governed so that is an owner operator not watching his costs. When he doesn't make it he will be on the boards crying about the company and how they ripped him off. You can bet on it. Ultimately your success will depend on the decisions you make. One more thing. If you are the kind of driver who needs a kick in the arse by a dispatcher Landstar may not be for you. From what I've heard from drivers you can be as lazy as you want to be here, since there are no dispatchers. I love being lazy. But I won't be cuz I have a dollar goal for my retirement and the sooner I reach it the sooner I can be lazy forever. You better be self-motivated here. Good luck all.

 

I don't see how you can operate at .80 cents per mile. Are you figuring paying yourself at least .40 cpm? Paying your federal, state and local taxes? Retirement? ect ect. We figure that the truck doesn't make a penny till we make $1.75 per mile.

 

Is he Hot Shot?

 

The $1 is what I pay myself, should I be fortunate enough to keep my costs below 80 cents and my revenue to the truck above $1.80. I'm just talking about my costs which do not include labor. It would if I had a driver other than me. Obviously the tax man gets his cut from that. And yes it is very difficult to keep your non-labor costs below 80 cents per mile as I thought I clearly explained. But that is my goal. You have decided to cost your labor at 40 cents and that too is one way to look at it. But since I keep every penny above my costs my labor expense is $1+ per mile before I pay uncle sam. If I can get my revenue up to $2 per mile like some have suggested here then i'll pay myself $1.20. It is my way of looking at it. Yours works too, although I've never heard of running a truck for a cost of $1.75 per mile. Are you including in that number a certain return to the truck owner and/or company?

 

I throw $4000 at uncle sam every quarter for estimated taxes and the following April 15th I usually owe a little more. Just like I want it. I do not give Obama an interest free loan. Perhaps you are including your estimated taxes in your $1.75 number. If I did that I would be above $1 in cost for sure. And if I costed myself as if I was a company driver I'd be approaching a buck and a half.

 

There's no state and local taxes in Texas.

 

For owner operators? And what about IFTA .I have not researched individual state tax laws but I would find it hard to believe with all the International freight that passes through Texas that they don't want or get a piece of the action? ???