Beware of Landstar Sky Bitz and E-Log Mandate

Yeah, the Unions offer decent bennies.....if you work the required number of hours to get them.

We also have the same people taking money from our pockets, as you do. The difference is that they take more from you than me.

 

In fairness to Landstar, they do spell out all of their deductions in their contract. They do have a lot of small fees, but you do agree to the deductions when you sign the contract with them.

 

Going from a Teamster grocery job to Walmart to Landstar I feel very confident in saying that its really all about the effort a guy puts in. I raised 2.5 kids,took great Mexico trips and bought a ton of toys with that union money but I put in alot of time and effort. Walmart was not a great choice and it cost me alot but were in court now and maybe one day I will get a little for the damage and take a bunch of us to Mexico for a few days of...fun! Landstar seems to be a great fit and Im really liking it but it takes alot of work,if you come here thinking your just going to drive and make alot of money you will be really disappointed. The sucessful BCO's and agents know at the end of the day there is still alot to be done.

 

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.

 

LOOK, plain and simple I like it and they are going to have to through me out! Times are changing and yes I'm an old dog and either have to change or get out. Landstar does spell it all out for you and yes its all up to you how much money you make. With that said There has been way to much Landstar BASHING going on here lately, and all those know who they are, But if you don't like it here or see things going the wrong way then lets change it or atleast get with the Chrystal Palace and see what can be worked out. Ive let them know I'm not happy with the high amount they want us to pay for EOBR monitoring and the rates for the EOBR, I don't have one yet and plan on holding out till Im told get it or get out. But if enough of say something some one will have to do something!
END RANT be safe

 

If carriers, any of them, want to force any owner operator to install an EOBR, then it should be up to the owner operator to decide which recorder he installs in HIS truck. Owner operators can print out and send in hard copies of logs along with their other paperwork. My guess is that should carriers allow owner operators to make their own decision concerning vendors that there would be less insistence on having them. He should be free to negotiate the best deal possible for his recorder and the monthly fee. If an owner operator leaves a carrier that requires elogs and then leases onto another carrier that also requires them, they may use a different system.

 

I found this post for you. You might try and read it: http://www.thetruckersreport.com/tr...warning-you-responsible-your-posts-under.html

 

What are EOBR costs? Also, what costs do they charge for accounting or whatever they do paperwork wise for leases? And what do they charge for ifta filing? Where is a good source to find all the costs encountered when leasing with them? Thanks.

(Btw, they are the ONLY broker that subtracts some small fee every time they pay a freight invoice. At least the only one that I noticed/know of. Like a charge for sending paper work with the payment, or something.)