Simply supply and demand. Don't under estimate the power of brokers to under cut each other on rates. Landstar agents compete against each other all the time. I see countless repeat load postings from multiple agents who's rates vary as much as .30 cents a mile! I have also experienced loads that had their rates padded up to get responses only to tell me the customer will only pay less. In fact in the last 2 years I have had more loads cancel then my last 10 years with Landstar. Some agents will admit they simply were out bid on the rate. These days, with technology of web based load boards the shippers know they can shop around rates and they know in weak areas they can pretty much move freight a lot cheaper by simply posting loads on multiple load boards. Even Landstar is nothing more then a logistics company working with multiple smaller logistic providers who share loads. Its certainly not benefiting owner operators in the rates. It may very well offer you more freight but at what costs? Its no secret that with so many out of work that many people saw becoming a broker or agent as a way to make money. To me load boards are limiting rate increases in some areas. It really does not matter if you lease to Landstar or have your own authority or lease to someone else. Your basically all compete for the same loads on a broader scale then ever before. The reality for the owner operator to survive is find niche lanes that pay well and reduce costs wherever possible to deal with the rates.
Landstar and rates for independent carriers
Discussion in 'Freight Broker Forum' started by Skate-Board, Sep 25, 2014.
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I'm about to leave Landstar. Their rates do suck. I've learned enough to move forward.
KB3MMX Thanks this. -
KB3MMX Thanks this. -
Is Mercer any different than LS, structurally? I don't see them post loads on public loadboards as much.
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One of the things you'll see a lot is heavily asset based brokerages struggling to pay market rate prices with high spot rates. This is because the brokerage side of the business often exists to allow them to broker out additional freight they've gotten from customers through their asset backed contract side of the business..
In other words they are getting the loads for the long term contract rates that they set with the customer in more normal times. Those rates might have been pretty good in 2017, and they might have been really happy to get them after 2015-2016, but today they simply aren't sufficient. They will be sufficient again at some point in the future, but until then they will probably lose a lot of money keeping their customers happy.
It is important to note that these same types of brokerages MINT money during down periods. Show me a Landstar/Mercer agent who lost 30k last quarter and I'll show you someone who had 25% gross margins in 2015-2016. Also LS and Mercer agents who just broker won't be affected at all... It's the big agents with significant national contracts who will be feeling the burn.KB3MMX, jsnell, DSK333 and 1 other person Thank this. -
Hi, boredsocial.
Can you PM me? I would like to ask some questions, if that is o.k.
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@UltraZero - we self-identified brokers don't have the ability to PM folks on these forums. Just an FYI.
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If you are dealing with one of Mercer's agents directly, like CNC, you might get quoted $2.00 less per mile than if you dealt with a Mercer handler.
I had a Mercer agent put "Call xxx-xxx-xxxx (agent office) for dispatch because she didn't want me to see the rates that Mercer Kentucky sees.
Either way, their rates are in the toilet right now around here. Better to surf the load boards and check Mercer agent freight when it goes back up. And check through their corporate office. -
Is there no way to get in touch other than this forum thread?
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