Beware of Landstar Sky Bitz and E-Log Mandate

truckfam · Jan 23, 2014

G/MAN said: ↑

Landstar has a system in which not everyone will be successful. A number of other carriers have attempted to follow their formula for success. I have seen some succeed and others fail under their system. Landstar stated the agent based system when most other carrier were still dispatching owner operators and paying mileage. It is easy to be critical of any carrier, but Landstar has a system that works for them and many owner operators. Even back when I leased to them, they did not hold your hand. It isn't that they just threw you to the wolves, but they did give you the basic tools and then assign you to a person at the corporate office to help for the first few months to navigate their system. I never cared for all the fees that they charged, but everything was laid out in their contract. I read it thoroughly and when I signed on the dotted line, I agreed to all the terms. That included any and all fees listed in the contract. Landstar worked for me in part because of my previous background in business. In fact, it was similar to running your own authority. There were a couple of differences. Under your own authority you do all the paperwork, but keep the entire rate that you negotiate. When you lease to Landstar, they handle all paperwork and compliance issues. They have agents all over the nation which you are free to call. Every owner operator and agent are independent businessmen. For the most part, you are treated as such. The difference is that Landstar still likes to control much of what you can do. The latest is the EOBR issue. Apparently, you have no choice as to whether you will have them in your truck or not. If you want to lease to Landstar then you MUST install an EOBR in your truck.

Over the years I have spoken with many owner operators who are leased to Landstar. Until recently, I think that most of them liked being leased to them. According to some of their BCO's (owner operators) too many of the agents are using brokers or 3pl's to find freight rather than spending time to develop their own shippers. That has resulted in lower rates to the owner operators. Some of their agents do have direct shippers and decent rates. Landstar will take a cut of every load you haul for them, as will any other carrier to whom you lease. If you don't have money to buy your own base plates and permits, they will front the money and take out a fixed amount from your weekly settlements. They will also advance money on loads once you pick them up and pay you the balance within a week. They take a high percentage (35%) if you use their trailer, or (25 or 27%)with your own trailer. They will charge you for using their money. But, they also offer fuel discounts when you use their fuel card and fuel stops. There are also discounts you can get on tires and equipment through their LCAPP program. Most of the same benefits are available from other carriers, such as fuel discounts. Landstar is in business to make money. And they make a lot of money. Some of their owner operators also do well, even with all the fees and high percentage that they take off the top. Their cut isn't much different than most other carriers who lease on owner operators. Landstar is really a large brokerage and bank. They own nothing (or almost nothing). Yet, they do make money.

Sometimes, dealing with Landstar is like dealing with the government. Other times, it is very simple and easy. In fact, I have usually found them to be quite helpful with most issues that I had with them. No company is perfect. There is no way to please everyone. I do think that they do try to be helpful. I don't know that I would want to least to them again, but it was a good fit at the time I was with them. I also don't think that I would want to lease to any other carrier. There are a lot of carriers around. If you are looking to lease on to a carrier, you need to do your research. Find out about deductions, pay and what is expected of you and what you can expect from the carrier. What may be a good fit for one person might not be a good fit for someone else. Landstar uses an outside company to do their background checks. Frankly, I think that they probably own the company. It usually takes several weeks to get through their approval process. The time does seem excessive to me, since other carriers can usually complete the process in a day or two unless your references are difficult to check or not willing to verify employment in a timely manner. I have known of some who tired of the long wait and went elsewhere to lease on their truck. You will find those who like Landstar and others who don't. I think it likely depends more on how successful they were while leased to them or an experience with one or more agents.

Any owner operator who is interested in leasing to Landstar or any other carrier should talk with those currently leased to them and ask about the company. I would want to know about rates, freight lanes, type of freight, company policies, etc., You also want to speak with the recruiting people at the carrier. Compare notes and then make your decision. One thing about Landstar is that you take your drug test and get all the qualifications out of the way before getting to orientation. At least that is the way it was when I was leased to them. I believe that I had to pay for my own drug test. I also had to pay for a current annual inspection. The orientation center where I went had an inspection facility nearby. I believe that they also had a clinic where you could go if you had little time on your physical. Landstar requires that you have your equipment inspected every few months. I think that it is every 3 months. If you fail to have it inspected the company will stop loading you until you comply. In that respect, you are treated more like a company driver rather than an independent contractor. It can be a little aggravating, but looking back it is a good idea. You can find things that need to be repaired before the DOT and prior to them major problems.
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TL;DR: Nothing on the topic.

We're required to install the EOBR. Does anyone know about it?

truckfam · Jan 23, 2014

LSAgentOZR said: ↑

I found this post for you. You might try and read it: http://www.thetruckersreport.com/tr...warning-you-responsible-your-posts-under.html
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TL;DR: LSAgentOZR is also off topic. The topic is EOBR's.

truckfam · Jan 23, 2014

LSAgentOZR said: ↑

Stop spreading rumors. Earn credibility by posting facts. I've spoken to carrier qualifications about this and it's simple - OOIDA's insurance rider is not given an AM Best Rating of B+ or better and has a history of poor payment. The policy is in place if the company's AM Best is not a B+ or better, they won't permit them to pull Landstar freight. There are more companies than just OOIDA who will result in you not being able to pull Landstar freight.
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Really? Our insurance is with OOIDA. Landstar takes it just fine. Both of you are full of it. We've hauled freight, with OOIDA insurance, for four + years.

truckfam · Jan 23, 2014

We have the e-log equipment in our living room. Anyone know anything about it? (Beside LSAgentOZR and other banned/retired folk)

person · Jan 23, 2014

Is Landstar going to pay for installation?

fortycalglock · Jan 23, 2014

truckfam said: ↑

Really? Our insurance is with OOIDA. Landstar takes it just fine. Both of you are full of it. We've hauled freight, with OOIDA insurance, for four + years.
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You're a BCO not an outside carrier. LS doesn't care if you have physical damage on your truck or not, or who writes the policy. If you're an approved carrier, they DO CARE who your liability and cargo insurance is written by. You're the one that doesn't know what she's talking about in this instance.

milskired · Jan 23, 2014

Not meaning to start a fight or anything about old news that I just caught, but why did LSAgentOZR get banned or retire or whatever? Forty if you don't mind would you PM me about it maybe?

fortycalglock · Jan 23, 2014

milskired said: ↑

Not meaning to start a fight or anything about old news that I just caught, but why did LSAgentOZR get banned or retire or whatever? Forty if you don't mind would you PM me about it maybe?
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I don't know. I'll email OZR in the morning.

fortycalglock · Jan 24, 2014

He was banned because he was supposedly advertising the Landstar agency he works for. Seriously, there are a lot of others here that do the same, and have done so for years. A lot of these lease purchase guys get money for every driver they get signed up, but they don't get the hammer. BBB was probably the worst offender out there for a long time.

fencitup · Jan 24, 2014

At Landstar, what's the difference between an outside carrier and a BCO?

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