landstar info please

The webinar is the "Razzle Dazzle Show".

 

The webinar is the "Razzle Dazzle Show". When they click on get load count and it shows 12 to 14 thousand available loads, most of them don't exist. Some agents fabricate loads, while others inflate the price. I am not sure why they do it, but I think they are fishing for drivers in the same way drivers are fishing for loads. The East European agents are the worst to deal with. They don't answer the phones and some are outright rude. Don't bother complaining because Landstar is not looking to get rid of any agents, no matter how bad they are. Don't bother leaving messages when you are trying to reach an agent for a good paying load. The reason he did not answer is because his phones are ringing off the hook. There are some agents with good paying direct customers, but those are few and they have their favorite drivers .

You pay landstar 28% of the gross if you own your trailer. The agent gets 7% of that. Landstar keeps 21%. Plus you have to pay for fuel, IFTA, 2290, Registration and plates, Tolls etc.They don't tell you about all the nickel and dime fees they charge you. If you ask for a printed list of all fees and charges they refer you to your signed contract. There is no list there. You have to search with a microscope (not magnifying glass), and you still will not find every fee. You have to pay for Workman's Compensation insurance or Contractor Protection Plan insurance. Landstar will force BCOs from some states to carry mandatory Workmans Compensation even when they don't need it. Workmans Comp is approx 90/wk. (almost 5k annually). CPP is about 35/wk. If you scan paperwork using Transflow app on your phone, its $2 per load, if you direct scan via your pc, its $1.00 per load. They say direct deposit, but they never direct deposit to you bank. They put the momey on your comdata card. Direct deposit fee is $1.75 per transaction. Then additional 1.75 when you transfer it to you bank. Plates through landstar are about $1600/yr. If you do a card balance inquiry through comdata, over the automated phone system there is a $3.00 fee. Fees for elogs. Fees to capture your IFTA mileage logs. If you do a power only load, you get only 70% and that too only if the agent is properly setup to pay you 70%. Otherwise you get screwed and they pay you 65%. (or whatever your contract is). Oh if you have a spill or accident and its your fault, your contract says that you will pay Landstar up to $5000 per occurrence. They force you to call the police, even if it is on private property. Bobtail Nontruking and Physical damage is through their subsidiary Gallagher. Its priced fairly but shop around before you sign up with them. Physical damage is not mandatory and they do not tell you that unless you ask. If you have older equipment make sure you don't insure for more than what insurance will pay out. They'll willingly insure for any amount you ask for, and assess your premiums based on the insured value, but you'll learn the hard way when it comes time to get paid on a claim.

So if you come with your own trailer, you'll be lucky if you get to keep 50% of your gross. If you want to take home $3500 per week before truck and trailer payment you'll have to gross about $7500 per week. I've been at landstar a little under a year and have grossed that only once with dry van. I stay out around 2 to 3 weeks max. The trick is to keep your profits up. Don't haul garbage paying loads. For the last month or so I will not haul loads under $2/mile and my profitability has increased. However occasionally I've had to deadhead home or to a better paying location.On weekends most agents don't work. If you want to drive weekends, book your load in advance.

I think I made a mistake coming to Landstar. I know freight is down everywhere, but If I were leased to a small carrier, I'd still be hauling the same scavenger load board freight that is posted on Landstar boards, but my commissions would be lower around 9 to 10% and I'd pay a fixed insurance monthly and I would not have to dispatch myself.

Word to the wise. Stay away. Its not a good time to jump ship.

 

If you have your own company and truck, do Lanstar still scrutinize your experience if you won't to use them as a Direct shiper?

 

Yes.

Your company is just the strawman who they address.

When you get approved by Landstar and sign the contract you become an employee that can quit at any time. Except they do not call you an employee to mitigate their risks and for legal reasons: No benefits, no minimum wage, nobody to really complain to. Take it or leave it.

I think if you can get into Landstar (the bar is pretty high) and survive as a rookie for a year or two, the big bucks might roll in after that. The key is, are you disciplined enough to survive? Do you have the finances to survive two years?

And by the way, Landstar is NOT a direct shipper. They have some agents that have direct customers.

 

Thanks Good to know, I think I have what it takes.

 

From reading some of your other posts, it seems you are a new Owner Operator. Have you leased to any other carriers? If not, I recommend you research some smaller carriers, where your overheads might be lower.

It takes about a month or two to get approved at Landstar, because they outsource the screening to some cheap company, who will repeatedly ask you to send the same information. It is a somewhat frustrating process.

If you still decide to take the plunge and sign on to Landstar, take a deeeeeep breath and release very slowly. It is not a bed of roses after you sign the contract. They have BCO advisers who will assist you for the first few months, but BCO advisers cannot manufacture good paying loads. BCO advisers cannot fix the systemic problems at Landstar and some of them think they are God's gift.

Read the contract with a microscope. Fees fees and more fees and charges everywhere.

 

Driver I appreciate everything you telling me. If you could, where could I find such info about the smaller carriers or there names. I've only driven for another owner o/o for a few years. Now I won't my own and make my own moves.

 

Wrong, you are not anyone’s employee other than your own when you run your own truck and choose to lease on to a carrier, any carrier.

You are your own employee as you are now running your own business. If you choose to lease your truck onto a carrier's authority rather than get your own authority that is your business choice.

Best to understand that and take responsibility for your business and your own choices.

 

Exactly. An "employee" has a boss that tell him what to do, uses company furnished equipment, and gets a W-2.

 

if you are capable of doing flatbed would you do it with Landstar? Mercer got my interest for fb.