Landstar Questions

There are a few companies that will not release drug,alcohol testing and accident information to LS or any other company if your still employed. This was not something I had planned for. With everything else approved I can not get my paperwork forwarded to corporate until my current/former employer gives verification. Not all companies use this policy but of course mine does. So I turned the truck in on Friday and am hoping they dont drag thier feet,I had hoped to get thru orientation Thanksgiving week.

 

I have not been with a trucking co. since feb. 2012, thought I wanted to be home and do the office thing but trucking is still definitely in my blood. no money working at home. LOL

 

Well also the ones that operate on their own authority have many more expenses then a BCO does. Such as cargo insurance , permit fees , ifta reports , a random drug test pool ..... There's many other obligations and federal requirements that must be taken care of which can be a headache.... BCO's do not have to worry about all that...the cargo insurance alone can hurt you. I tried using my own authority and for a couple hundred dollars less on each load I would rather be a BCO.
Also as a BCO you get huge fuel discounts that operating on your own you will not get. Plus discounts on parts and repairs or no taxes at most repair shops.

 

From a business prospective, what does all that break down to per mile or week?

LS Savings Plus card. All approved carriers should get this ASAP. About the only thing that I can't get at the LS is tire discounts. But I understand that is coming.

 

BCO's pay their own fuel taxes, although Landstar does the paperwork and filings. BCO's also pay their own permits and base plates. Landstar will front the money and take out a flat rate from the BCO's settlement each week until it is paid. Running your authority, your liability should run more than the cargo. I believe that I pay $700/yr for cargo. There are advantages and disadvantages to running your authority rather than leasing to Landstar or other carrier. The advantage that I see leasing to Landstar rather than running your own authority is that they will front the money for your base plates and permits and will also pay the cargo and liability insurance. The other advantage is that they do the paperwork for your quarterly filings. Landstar does run a rather tight ship, in some respects. I have been on both sides of the desk with Landstar. Not everyone is cut out to run their own authority, just as not everyone is cut out to lease to a carrier such as Landstar. You can get some fuel discounts with Landstar if you use their Savings Plus Card. But, if you run loads for others, you will need to leave money on the card for fuel in order to get the fuel discounts, since only Landstar can load the card.

 

One advantage to leasing to a large carrier, that few if any, Independents have is sales force. Without sales, there is no freight to haul. Without freight, there is no revenue. We can get into some shippers and obtain freight that the small carriers and Independents usually only dream of. A major defense contractor is not likely to trust their one-of-a-kind engine test stand to a one horse pony. But, they did entrust it too me as I have the backing that they require.

 

Autocar makes an excellent point that many independents can't wrap their head around. Someone has to sell that customer for you to haul the load. And a sales force is expensive. LS has a dedicated network of brokers that do an excellent job selling.

 

That was a hard lesson learned, early in my carreer. It's why I gave up my authority. I can't even sell toilet paper to a diahrea clinic.

 

You still have to sell when working with brokers. You do it daily and must be better at than you think if you are making it at LS. Just be thankful you are a tenured open deck BCO.

 

Nice analogy Autocar, I think we get the picture.