Landstar vs Independent

I would like to open this thread up in hopes to gain more knowledge about the other side of being in business.All the knowledge from the Independents with there own authority would be very helpful.

The reason i am asking for input is because i am just getting tired of the whole Landstar B/S and there new business model is not what it once was.I have been asking many many questions about this whole Landstar Operation.

This week i had the pleasure to run with a man that owns his own trailer and truck with his own numbers.This man was a wealth of knowledge.The more i spoke to him the more i questioned alot of Landstar's Policies and Procedures.To get started i would like to tell you what i learned from this man...

Being a BCO i pay 70.00 a week for workers comp.That is 52 weeks x 70.00..This is 3,640 a year.Well much to my surprise this man is NOT REQUIRED to carry any workers comp unless he ''employs'' someone.This is a big money saver.I called my Lawyer and my Accountant in NY and they confirmed i DO NOT have to carry this if i only employ myself...

His Plate is only 1,550 for the year.Mine through Landstar is 1,600 plus 200.00 for permits..More savings for the independent.

I question Landstar's IFTA REPORTING.I fuel in high taxed state and still owe money every quarter and they have my truck doing 4.9-5.4 MPG.This is B/S because i get 6-6.9 MPG.Some people think Landstar is making money on the IFTA REPORTING.

His cargo and Liability is 8,000 a year.This covers everything including the bobtail...Landstar makes us pay a weekly 40.00 for bobtail Ins..

E-LOGS.Landstar is slowly mandating all BCO's to have this box but they charge the BCO for this.This is 29.00 a month..Not to mention this is not being treated like an adult.This is not the ''freedom'' landstar trys to sell people.This is a babysitter.

SKYBITZ TRACKING.Ths again is not freedom landstar sells.This system started on a good idea to track the loads.Now landstar has used this to track the professionals they hired.This to me is more babysitting..

The independent i ran with has no tracking what so ever.He is treated like a competent PROFESSIONAL and TRUSTED by many in this business..

Ad valorem tax..Landstar is charging us this tax accordingly in 4 states that we run..

500.00 escrow.

65% to haul crappy landstar trailers.
72% if you have your own.

Landstar may be in Kohoots with Gallager Ins out of Kansas City.It seems i am not allowed to buy ''cheaper'' INS because Landstar wants us to go to Galleger..Maybe Gallager is a relation to some of the investore here at Landstar

After this old timer took me to school about many differences and ways he felt Landstar was shoving it up our ###,i thought i would come here to listen to some of the Independents..What i feel is Landstar is making money off us on many fronts...This is why i am going to slowly dissappear from this Landcrap..

Please do not get me wrong.I have been with Landstar on and off for 20 years.Back in the beginning it was the cream of the crop.Today this is Pathetic...

What i have come to realize is Landstar is taking 28% and 35% for what..?....To do are IFTA REPORTING..In a nutshell this is all that Landstar is really doing for us..That is a big chunk to pay for 1/2 hour of paperwork a week...We are paying for everything anyhow.The only good thing is Landstar is ''fronting'' us the money to get started..At the same time they are skimming us and making money on this ''fronting'' the BCO's the fuel,plate.ins etc etc...

In closing i feel that BCO's are getting ripped off and should look into going on there own.It would actually be cheaper.Not to mention it would open yourself up for more business,more work and even direct customers...

 

Thanks for the reply.I asked the independent and he said he gets paid in 24-48 hours.Some customers take a bit longer too.I know with Landstar Brokerage is where i will prolly start pays in 48 hours at a rate of 1%...I also taked to CH and they will use me too.They pay in 48 hours at !-2%...

 

This is not a thread about leasing to a better place...

 

I do not want to make this a bashing landstar thread..I will allow anyone to keep wearing the Landstar rose colored glasses..This thread is to the true ''independent''...

 

I forgot to mention what this Independent did say..

He did say that the L/S Fuel program is a good one and we BCO's get up to 40 cents of the posted price..He has to look hard for his fuel savings because he is a one man operation...

He also said that L/S LCAPP is a good deal to for getting tires cheaper than he can get them...

That was 2 positives for working under the umbrella of a mega company...