Trailer Rent?

Forty, I will respectfully disagree with you. Several things in your perspective are are a little different. Not sure when you stopped being independent and leased to LS but in 2009 LS made it public that they would be looking to significantly increase freight on outside carriers.

The other thing is you live in the LS open deck world. That is a far cry different than those living in the van world. I have talked to a large number of these drivers and they are making less than $1.50 to the truck.

Now it is a strong possibility that these drivers are idiots. Heck, I have spoken with them and know it. But the more likely scenario is that agents make more money putting freight on outside carriers. This I know from many other conversations with agents.

I have made no secret of the fact that I think LS has made some huge mistakes in this area over the past 4 years. Heck, LS admits this and is struggling to reduce turn over is this area and fix the rapidly falling rates in this area.

I don't think that LS had any intention of this happening. But efforts back in '07' and '08 to increase the agent base have backfired in a big way.

But you are not going to see the negative effects of this in the open deck market. How often do you see an account move from one agent to another? Pretty rare in your world.

On the van side you will have BCOs tell you they have seen accounts switch multiple times in a year and always at a lower rate.

 

I took some comments I'd read from the past not directed squarely at me and maybe went a little overboard here. I have nothing but respect for you fortycal, I could say the same about every single one of the regulars who post here, even ones I disagree with. Ultimately all any of us here is striving for is to get fair rates for the valuable service we provide. Folks trying to figure the game out come here to learn. I do it every day. Learn all kinds of things. Also learned all kinds of things out here that go against conventional thinking, that were shocking to see. Be safe..

 

I would like to see this if you can find the announcement.

This is a true story. I just wish they would go in now and get rid of the garbage they recruited. That and I wish they'd stop trying to bring in other agents on your accounts. I've been told by several BCO's that a few of Landstar's biggest and strongest agents left because of this very thing.

 

Go back and read annual reports and listen to conference calls. Several companies purchased and initiatives since 2009 that are in place now that are exclusive to carries and they talk about great strides towards having increased freight on outside carriers. All right there to read in financial reports.

 

I pay $155 a week to rent my trailer from Landstar. It is a brand new Revolution 52 and I can't complain. I get 73% of the L/H here and the way it has been working for me, I have made $700 extra each week with the trailer (after deducting the $155 payment)

LS covers all repairs, tires, maintence, ect ect.... i pay none of that.

i just ran all my numbers for last month and here is what i came up with:

$28,684 gross ($20,939 to the truck)
9,325 hub miles driven........

Wasn't the greatest of months, but it was my 1st month with LS and I took 10 days off that month

 

SHC, LS open deck is still one of the best games in town.

Good job

 

I have met several Landstar BCO's who pull open deck trailers who say that they are doing very well with them. I don't know about the van side.

 

Well I run into a lot of LS van drivers who say that they are not doing very well. Most have an avg RPM of $1.55 for all miles. I've spoken with a few doing better but they are all in a niche deal doing dedicated work.

The only downside to the LS open deck is you have to chase the rates. I'm having a hard time finding loads over $2.25 mile going back to Chicago from anywhere.

My plan is to get my miles down and get my rate up to $2.50 mile to the truck. To do this I am going to need to stay more regional, but every time I try a $4 mile load will pop up going out to the left coast LOL

 

Whether you lease to Landstar or run your own authority, you will still be chasing the rates if you want to get the better paying loads.