The odds are in favor of the house

Im an owner op . i pull loads off the boards. I can tell you i had a prime disp. Call me to pull a load out of TN. I asked them with all the Prime drivers you have why is load on the board.
I was shocked at their reply. They basically said if the load is critical rather that be delivery time or the load value itself they look to see what prime drivers they have in the area . Now if the driver is new or has habit not making deliveries load goes on the boards day before pu date. If they cant get rid of it then they put it on 1 of their drivers. So i said basically if you got 3 drivers at tstop looking for a load you dont trust them you broker load out. Yep thats what we do that why we post the loads 24hr in advance.

 

Some companies like mine allow their lease drivers to work loads boards as well under certain conditions where as most wont. So thats an incentive as well

 

Yep, at Swift we had an outside broker we could run spot loads from. Unfortunately Knight killed that program and that was it for me. Moved my operation to a company where basically I just use their authority and find my own loads.

 

I disagree......you're only reading what you want to read. There's plenty of success stories; I happen to be one of them

 

Yea okay. I know 500 failures to your one
Success story.
Every company I worked for is littered with
Ex-owner/ops and leased drivers who went flat broke
And vowed to never do it again.

 

well, honestly, ask yourself this. Of those 500 failures, how many were people who had no business whatsoever leasing a truck? How many leased for all the wrong reasons? How many failed because they were failures in life to begin with.
I'm not saying every lease is good, however, I can tell you that if you lease from Schneider and have a good work ethic and are reasonably intelligent, you will win. Schneider will back you if you're trying. If you're a slacker who can't balance a checkbook, you will likely fail in any endeavor. It's called life.

 

Now see you lumped owner ops and lease drivers in there together ... It's not the companies being evil or greedy. It's the fact that most fools haven't got a clue what a business is , much less how to properly go about starting and running one.

100%of the people who try to solo an airplane without knowing how will crash. Doesn't mean airplanes can't be flown.

 

Everybody makes good points. My issue is companies wanna pay 1.20 mi when they got the load for 4.25mi.
An honest lease will show the driver a rate con . Then let the driver have a percentage if that rate.
Companies dont wanna pay % if they did and the driver saw the REAL rate of the load then they would no longer do lease programs.
The problem is companies wanna do lease prog to be more profitable because the lease op his shouldering all the debt to pull the load for a fraction of the rate. No company out there wants you to get rich but to only pay the truck off.
Personally the amount of money companies are making off lease drivers there is no reason why company drivers dont make more. The only reason company drivers dont get a raise is because if they do lease ops will go back to being company drivers. Fleets dont want that eats into their profits

 

Actually it's not that hard to figure out. The large carriers are working off of contracts. Each lane for that customer has a contracted rate. Some lanes pay well, some lanes pay crap. But if the carrier wants the contract, they eat the crap lanes.

Now, if you dig through the quarterly reports you will find that dry van carriers sit right around $2.00 per mile for loaded miles and run about 10% mt. Basically they track the averages. Sort of like a mutual fund. As opposed to a single truck owner ops, who operates like day trader focusing on the big score.

So a lease op gets $1.20 mile loaded and mt. Giving them a loaded mile rate of a $1.32 with 10% mt miles. Throw in paid tolls, IRP and whatever and a lease op can be around $1.40 in total compensation.

That's 70% of the load. What's Landstar paying?

The problem is the $2.00 floor.
There's just no opportunity to do better. But you won't do any worse

 

Sounds bout right. At 2.00 i seem to break even. So i try to clear 2. and thats not easy. It seems every broker out here pays 2.