Landstar Load Alerts

The rate good for the load?

 

Not on Landstar yet...they have good paying reefer or dry van near Ga, Fl, Va areas? I'm hearing they're pretty low right now...

 

Most BCO's quote the gross amount that the load pays, not their cut. It is rare that I have had any of them give me their cut. It sounds better when they quote the gross rather than truck money. If a BCO is power only and the load pays $2.00, it sounds better than if you take Landstar's cut out of it which leaves the BCO with $1.35 (65%), plus the fsc. Landstar used to make it much more complicated to calculate the truck money. They used to pay 98% of 100%. Now they lowered the truck percentage and pay on 100%, but the numbers are about the same.

 

What you say is the ratio of D/H vs. live at Landstar?

 

When you get load alerts as an outside carrier, that is the amount the agent is willing to pay you, it is not the gross amount of the load. It is typically discounted 20% or more form the gross. When a BCO gets load alerts, it is for the gross amount. There are a lot different percentages that BCO's operate under, for example, if I have an extra axle over 5, I get an extra percent, or we have old timers on 80% contracts.

No, you don't have to pay cargo insurance. You may decide to have or your lender may require physical damage insurance for the trailer.

It all depends on the load and the agent. A lot of my stuff would never get brokered or at least not at the normal 20% they take. $4 FL outbound (gross) like I pulled yesterday is going to be sold for $1.50-$2 depending on how lazy the agent is. Of course that load never hit the board int he first place. A lot of agents bid freight they know they will have to broker due to the low pricing. Outside carriers will haul for lower rates than BCOs, so while the Outside carriers would technically make more money on the load, a BCO wouldn't take it in the first place so it would sit on the board. just like IT and DAT, good loads don't stay on the board past the first caller. In general, apples to apples, usually an outside carrier will make a few percent more than a BCO on the same load.

I'll agree with you there. On the board here, when quoting my numbers, I always quantify that whether that is to the truck or gross before LS cut. Most times I just quote to the truck as it's much easier to compare with authority holders. My $2.40 per odometer mile last year was to the truck. The 98% deal pays about 1/2% more than the 100% deal. There are still a lot of BCOs on the 98% deal, and a handful on the 75 and 80% deals.

Buy your own trailer, forget about drop and hook if you want to make money pulling vans.

 

Besides the extra percentage, How does owning my own trailer help make more money? Doesn't it limit the pool of freight available to me since I would not be able to take drop and hook loads?

 

Yes besides the 7%, which is a 10% increase in revenue, it prevents you from having your trailer taken during time off, dropping and not finding an empty or finding an empty that need repairs. Typically, drop and hook pays the least as well.