Landstar no longer a good company

Ya when I was at the dock at the Denver convention center another Landstar BCO pointed that out. I want to get some custom decal work done with the Landstar Inway name, location, DOT #, operated by, CA intrastate #, and unit #. Probably forgetting something.

 

The one thing Landstar does it this...separates the men from the boys!!!

if an owner op says they can't make $$ @ Landstar...then it's their own fault since they're picking their own loads...

 

I don't have a dog in this fight. But, have you ever thought that there are only so many good paying loads, and the rest are not so good. The BCO's with the "in" will automatically get the first pick, then those not on the list will fight over the rest. If there are only a finite amount of good loads, then everyone else will have to take the lesser paying loads, or sit for a week or more waiting for a "good" load, if they ever find one. That won't help either if a perferred older BCO is heading that way who has an "in" with the agent. The load will never see the board, then the "in" person will have the great load, and the other will never know that load was even available.

 

Thats a good question that I have wondered about myself, as I have considered a lease with them.
I pull mostly Landstar freight as a contractor now and wondered if I would be any better off on the other side or not. When rates are in the toilet like they have been Im sure the older BCO's get the cream, and the average stuff go's to the newer BCO's, and whats left go's to the contractors.

Autocar, or any BCO, are open decks required to have hazmat ?

 

Years ago Landstar changed their policy to where the agents could post their freight on a broker board at the same time they put it on the Landstar board. Landstar is like everybody else. When they have a load they want a truck on it immediately. Alot of this is because its double brokered freight and if they dont book it someone else will. I even see good Landstar loads on internet truckstop that never even shows up on the Landstar board. And that is the real Landstar board I am talking about Gerkins aka Autocar.

 

We are all required to have the hazmat endorsement, even multi-axle lowboys. None of us are required to pull hazmat loads, just have the endorsement. The reason being, from what I can figure out, is so a hazmat load never ends up on a unqualified driver. The penalties are very high for that violation and would jeopardize too many contracts, especially our DOD freight.

One thing, you will find if you study LS carefully, is LS is very adverse to risk. They will minimize risk as much as possible. This is why our reefers do not haul ice cream and we only do two kinds of haz waste.

As to you coming over, you have to weigh it out, for yourself. I can tell you that the LS broker board, normally only shows about a third of the loads, posted on our in-house loadboard. I do compare them, on occassion.
I do, at times, get loads that never hit the loadboards. It is not constant, but enough Agents know me and know where I am, that I do get calls. I still get most of my loads from the board and many of them are very good. Example, last Monday, I loaded a load that hit the board, that paid $3.05 per mile, gross, legal dims and 28,000 lbs. This was in Houston, which was covered up with open deck (most rates were reflecting that fact), and went to west central GA. This load could not go on an outside Authorized Broker/Carrier as the value was too high.
These two facts I have verified with LS management and some Agents that I know personally. Loads are brokered out, generally, at 80% of gross, to cover the Agent's commission and LS's cut. The Agent does have some wiggle room, but 80% is the average. Loads valued over $100,000 are not brokered out, as few Broker/Carriers carry cargo insurance exceeding that figure.

LS BCOs will always give out the gross rate, if they will tell the rate at all, because we are all under different contracts. Our percentages are based on which contract terms you signed up under. Older contracts are a slightly higher percentage than mine, but mine is slightly higher than the present one.

Here are some factual numbers, for you to digest. That load, I picked up last Monday, paid $2,300.00 gross, on 753, computer miles. If it went on a Broke/Carrier (which it could not, because of value), it would have paid $1,840.00 to the truck, or $2.44 per mile. In my opinion, not a bad rate, for two legal size crates, weighing 28,000 lbs total, requiring full tarp. It paid me 73.5% of the $1,780.00 linehaul rate, or $1,308.30, plus 100% of the $420.00 fuel surcharge, plus 100% of the $100.00 tarp charge. That all adds up to $1,828.30 to my truck, or $2.43 (actually $2.428) per mile, actual 79.49% of gross. I don't have the expense of public liability and cargo insurances, plus many other things an Independent Motor Carrier has. These expenses are all covered by LS, paid by their cut of the revenues. You need to cover these expenses from your revenues.

I also paid $598.18 for the 169.686 gallons of fuel I purchased at TAs in Texas and Mississippi, for an average of $3.52 per gallon. Can you, as an Independent Motor Carrier, do that?

Only you can make the decisions, for your business. I hope the information, I have provided, will help in that decision. It does not matter, too me, which way you decide to go. It only matters to me that you get the straightest information available, not rumor or guesses.

It is a fact, that all new BCOs, must run an EOBR. However, I truly believe that we will all be mandated to run them, within the next couple of years. I don't have one, only because I still have a mechanical engine. Otherwise, I would have one and I don't see where it would have a negative effect, too me.

 

Thanks for the info Autocar, I really don't care to get the hazmat endorsment, and I thought I had read on the website something about it and wasn't sure if it was meant for vans , or everyone, as to the EOBR's,I wasn't crazy about that, but figured I could learn to live with it, as I tend to agree with you that big brother is going to force it on everyone eventually anyhow.

 

Just to clarify some stuff about Landstar from a current BCO who neither dislikes or likes Landstar. First off Landstar changed its percentage contract from paying 68% of 98% of the load to paying 65% of 100% of the load. This is where the questions have come in about the 2% change. Also all current BCO's coming on to Landstar must have a EOBD logging. No exceptions. As for freight their is always those with Landstar who say the glass is half full and others who say its half empty and some that its totally empty or totally full. The reality is that it really depends on where you live, what you haul (flat, step, van) and what your costs are. I do know BCO's who make good money and I know more that have washed out. The problem is that the load board is not what Landstar claims it is when you go through orientation. The really good loads hardly make it to the load board unless their is so few trucks around a certain area. Most agents have their (list) of BCO's they work with. Some big agents even have their own trucks. To be honest about Landstar is to accept the fact that Landstar is really about moving freight. Just as CH Robinson is about selling loads. Yes, CH Robinson used to be like Landstar and had its own trucks. Obviously, they finally realized that freight was more profitable without the headaches of trucks. Landstar has plenty of options to move freight. It does not need BCO's to take those cheap loads posted on the Landstar board. Nor does it need to make every BCO happy and making good money. You are your own boss, and Landstar offers loads to you that you can haul. I myself only stay with Landstar because I can take off time in the Winter and work at my leisure. Because much of the freight is cheap and going to places with even less outbound freight I choose to stay right at home. I am lucky because I own my truck and trailer and would rather sit then take those loads that don't pay well or end up paying well but go to area's of bad or no freight. I know many BCO's do not have that luxury and need constant freight income to survive. It can be tough for many to work just off the load board. Especially Van freight which has always been cheaper then flat, step and oversize. Its not so much that Landstar has bad freight but that bad freight is plentiful throughout the industry right now. I have drivers ask me about Landstar all the time and my answer is always the same. Never believe the hype from anyone or the negatives from anyone. Landstar has turnover much like any trucking company. It is better then most but its still high. Landstar is not without issues for new BCO's and its not without rewards for those who can find good agents to work with. But its not a guarantee that you can make it at Landstar anymore then anywhere else. Its a weak industry that is facing weak freight volumes and weak rates and that is common in the industry. Like I said, Landstar first and foremost is about selling loads as a logistics company. I think their are just as many agents for Landstar that wash out as BCO's in terms of turnover. So its not just a BCO problem. Its a freight problem and Landstar competes like every other trucking company for freight. I can tell you in my 8 years with Landstar that I see less and less nice trucks leased to Landstar. I myself drive a 2006 Freightliner. This is just a observation I have made over the years and I think it also would reflect similarly in the industry. Trucking for most is a not going to make you wealthy.

 

well I'm the new kid @LS and love it been here 3 years now. one ??? after 19 years @ LS why did you not buy your on trailer.hello!!!!

 

Lets see $2.50-$3.50 gross=$1.67-$2.34 your gross,and your weight is 20,000lbs and majority of your loads come from the load boards,if you said you have certain brokers you work for I would of believed you.Advice sit down with calculator and find out what you are really making.You might be sadly surprised.