Landstar pay package

devildog, I guess it's your choice, you can believe Skate Board a software engineer or someone that has been with LS 23 years.

99% of the loads have a FSC or the agent brakes one out of the linehaul, very simple you get more money than the straight %.

Now if one is hauling broker freight it does not matter because you get 100% of what they quote you, they can divide it up into LH,FSC, tarping but it doesn't matter because you are not getting paid a percentage thru a company. You'll never know if the customer is paying a surcharge or not.

 

And you still don't understand. Being a software engineer and owning a trucking company it's simple logic. Who cares if it pays $2.00 a mile or $2.15 a mile of which $.15 is the FSC. You get what you get and that's it. Who cars if you get FSC, tarping fee, and any other fee. It's the total amount that matters.

A broker can tell you the load pays $2.00 a mile or $1.75 plus $.25 per mile FSC. Whatever makes the trucker happy, it's still $2.00 a mile. Break it up anyway you want to make yourself happy.

What is FSC?

When a shipper wants a regular load picked up and delivered from lets say OH to VA every day for the next 6 months brokers quote a price and the lowest wins. Included in that price is an agreement for FSC. That way if the price of fuel goes up the shipper has to kick in extra money for the carrier gets the same amount of money they originally agreed upon. If the price of fuel goes down the rate doesn't normally change unless there is something written in the agreement.

If the load is a one shot deal there isn't any FSC. You get what you get. Why would they add on anything else on a one shot load. Makes no sense. Once again, logic.

You would think after 23 years you would have understood this. Other things I learned in life to say.

I didn't know that
I was wrong

 

i think what skate board is saying is that the FSC he is taking about is between the direct customer and the agent. in those cases its a set rate, or the rate can change to the day when the load is hauled and such. on most brokered loads there is no FSC rate between landstar and the broker. The load pays $1000 and thats all in. The Agent breaks out FSC so the bco gets slightly higher rate. as a landstar bco if the load pays $1000, as long as the broker gets billed $1000 they dont care if the lh is $850 and the FSC is $150, or $900 and $100, so long as they get billed $1000.
To the BCO
.65% 1000, is $650.
.65%x $850= 552.5+150=$702.5
.65%x$900=585+100=$685
on most little short runs like lets say 30 miles its really not much money to break out $6.30
if the FSC is .21cpm. most agents will just break out $50 of $30 of so. i have acutally done a run that was 17 miles and got $2.12 FSC. i two years i had one load where they would not break out the FSC.

 

I concede, I really don't know anything about trucking, if I did I would run my own numbers and play the spot market and be hauling all that high dollar freight that I never get. Oh well , to late to Change now, I'll just stay where I am and chase that elusive $2 a mile freight.

 

Of course I do. But we're on a thread about Landstar pay and you said the FSC is only given on a dedicated run. For guys who are wanting to know how LS works that are reading this thread they need to know that's simply not accurate. Within the LS system it is rare to not have a FSC.

How/what a FSC is in general and not specific to LS is a whole different animal, but I didn't think that's what we were discussing here.

 

It doesn't matter if the call it a FSC or beer money, it is revenue you get at 100%, so you get more than the 65% or what ever your contract pays.

 

Only if it's a lane that Landstar bid on and includes FSC. Other then that, you get $1.30 on a $2.00 per mile rate. LS gets the rest.

 

Like I said before, the only time I didn't get FSC broken out was on a DOD load that paid crazy good money anyway. They always break out FSC at current rate based on DOE index, even on the cut-n-paste double brokered stuff. I'm not sure how they work that out with whatever broker they're getting the load off of, and frankly I don't care so long as I get the FSC broken out at 100%.

I'm pretty sure they are just billing the broker a flat rate like you say, but internally as far as how they pay me it's always broken out. Lot's of times I will talk them into breaking out a few hundred as 100% loading/unloading also and I'll bet the outside broker never knows about it, but it is paid to me that way from LS. They pay me a higher price based on the breakouts I negotiate for and they still end up getting the same flat rate for it from whoever they got it from.

 

I won't comment.

Devildog, what sawmill say is right. I have received over 1200 settlements from LS and I think I know how to figure what my part is.
To confuse you more when you get a advance you get 30% plus the FSC amount.