Percent pay @ Landstar vs Schneider Choice

Yep, you got to figure all the angles. Of that, there is no doubt. I ran mileage, years ago and while it wasn't bad, it did have it's drawbacks, in my opinion. The only way to make more revenue, was to run more miles. As an O/O, to me miles represent expense, not revenue, I don't want to drive anywhere, but I want to get paid #### well to get there. All loads were basically the same, as to pay, no chance of getting or putting together that killer load where you stand back and go "OH WOW".

As to the base plate, mine is $1650 per year. On 100,000 miles, that works out to 1.65 cents per mile.

As to no fuel discounts, that can hurt. Lately, I've been getting around 40 cents off at some of our stops. 40 cents at 6 mpg is a 6.7 cent per mile hit. At one of our stops, we get an 8 cent discount, which at 6 mpg is still a 1.3 cent per mile hit.

You are doing well, in doing your research. Weigh all the factors and base your decision on your own opinion, not on someone else's opinion, especially those that have a possible financial interest in your decision.

 

Just to show this aspect of the LS side, I ran a OS load to Pittsburgh over the weekend and I got $3,500 to the truck, plus they covered the $225 in permit costs. There were also 6 outside carriers there and were all running under their own authorities. the agent I pulled for was a LS agent, she had 4 LS trucks and the others she put on a broker board. The other carriers each got their loads from a different broker and all got $2,500 to the truck and had to pay for permits. So it's not always the same..... i also have had an agent tell me the load paid $2100 to go to NJ and then when they asked who i was with and I told them I was a LS BCO, the rate for LS truck was $3,000. So from what I've seen so far is LS makes their agents show all the cards so it helps but also hinders sometimes i think.

I am happy where I'm at and like the company. I am doing just fine and am making money. I'm sure I could make more on my own, or maybe I am not that great of a businessman or salesman and I would do worse and fail????

All i can say is, TO EACH THEIR OWN.....

 

You think the agent makes nothing? They they get their 7% or more, they don't give away their freight for nothing.
The 98% thing went away several years, new hires with trailer get 72 or 73% of 100%. Anyone that doesn't believe I am right can call recruiting and ask. 855-578-7226.

The real deal is LS and Schneider move about 6 Billion dollars in freight a year or about 17 million a day, if someone goes to work with either one and can't dig around and find freight to make a good living it is no ones fault but their own. Both companies offer plenty of opportunity.

 

I have no doubt about that.

 

All good questions.
LS provides me with a copy of the actual freight bill (invoice). I don't even have to ask for it, they post it in a secure area on their website that I can access with my username and password. All charges are itemized on the billing, linehaul, fuel surcharges, accessorials, etc.

Fuel surcharges depend on where the load comes from. Some shippers specify the fuel surcharges to be paid. If the shipper does not specify a fuel surcharge structure, the Agent will negotiate it with a direct shipper, if it's his own customer, or LS Corporate will negotiate it on a national account. Spot market loads are normally bid as flat rate. In that case the booking Agent can use the weekly published LS fuel surcharges, which can be the standard national surcharge or the different regional surcharges, depending where the load originates or delivers.


A BCO (Business Capacity Owner) is the same as a leased O/O. Just LS's term for them.

Each BCO is responsible for the cost of any IFTA taxes. LS files and sends the actual check, but we are responsible for the actual funds. If I have an IFTA credit, it is applied to my next year's baseplate expense. If I come up short, from not enough fuel purchases, the amount due is deducted from my settlement.

As to your own authority, my advice is and has always been to persue it if you are going to be hauling the majority of your freight directly for a customer (shipper or consignee). If you are looking to haul mostly or exclusively for brokers, you're better off leasing to a good carrier, as the revenue to the truck will be very close to the same, but the expense and responsibilities will be very different.

One important thing to keep in mind, you risk a very large amount of your own money to operate. As an Independent Motor Carrier, a one truck operation can easily have between $15,000 to $35,000 of your own money out on recievables, while waiting to be paid on loads hauled. Do you have the funds availible to do that?

 

Rick, BCO is a fancy acronym for an o/o leased on under their authority. Business Capacity Owner.

 

His post was not to say that the Agent makes nothing, but to take that variable out of the equation. An Agent can play with his/her commision on a brokered out load, which can throw wichris' off when trying to compare apples to apples.

 

Its convient because you dont have to call the agents....Kaplan has a ton of coils and I try to avoid them....Robinson and Mercer haveload boards Kaplan doesn't

 

See above i screwed up

 

On the 1% Powertrack charge, to U.S. Bank. That is deducted, before the 2% or any other percentages. I ran AA&E for twelve years, I am very familiar with that system.