Landstar Questions

I think we are all on the same page. I agree with just about everything you say. My problem is the ease with which people seem to be accepting these regulations. Yes it would seem as if the writing's on the wall and us peons will be subjected to the whims of the powerful wealthy few, but I say "Not without a fight". I refuse to just lie down and let these people run roughshod over everyone of us.

Unfortunately, these operators that I am referring to, load right alongside me at military bases on a regular basis. It has been a regular occurence now that most loads I move are available on a broker's board somewhere and that I could move them for myself, just as I am for LS without LS taking a cut. This happens at least once a week. Just about every load I have been getting has been from a broker that asks me if I know anyone else looking for a load regardless of the carrier they work for.

This is a recent change that has taken place since Gerkins took over a few years ago and is now in full swing. In fact if you look at LS's 10K:
http://quote.morningstar.com/stock-...TR&ft=10-K&d=4f444fbc4fc4a1f7f9f338db4523293f

You will see that LS gets half its revenue from 3rd party carriers and that LS's largest expense is the insurance it pays for its BCO's. So just about every load I move is available to anyone with a decent CSA rating regardless of their carrier.

If you were an O/O with your own authority say 10 years ago, EVERYTHING has changed. EVERYTHING is on-line now. Most loads are on-line. Sure not the good stuff, but when you perform for a carrier, they ask for you by name, so you just have to build a database of customers.

These are the things that you have to keep in mind as a business owner. Is the business profitable? Will it stay profitable? Is there greener grass on the other side? Of course any O/O reading this already knows that and just about anyone who has ever run any kind of business as well. I know that LS Agents are working with any carrier that LS approves and there are thousands of them. I know that these outside carriers have far less paperwork to do to get a load than ten years ago. Heck most paperwork is done now with the few clicks of a button.

I still can't see every truck with a log book being tracked by law 24/7 via satellite. I don't think we are there yet. Maybe in ten years or more, but to me it is a solution for a problem that doesn't exist. My log is accurate and my truck is always where the log says it is. LS sends me bogus log violations every month that I have to call them on and point out that their system is faulty. I have always been right and they have been wrong, so far.....

I don't appreciate their cagey way of trying to pin the fault on me with some slight of hand that is supposed to make me voluntarily give in and get an EOBR. Frankly I have no issues with using a log book and an EOBR is an unnecessary intrusion into my life and business. This constant suggestion that because people don't want an EOBR, they are running illegally, is insulting to me. I could use this same logic for other technology.

You don't want a chip inserted in your skin like your pet gets? So that if you get lost, we can find you easier. Of course you should get that! If you don't, we are going to say that you must be doing something illegal. It isn't because you value your privacy, its because you are a criminal. Mind you, that technology is available right now. The next big thing is clothing tags.

http://online.wsj.com/article/SB10001424052748704421304575383213061198090.html

I wonder why no one wants these? They all must be criminals. I say that if you don't want a tag on your person 24/7, you should be banned from working in the USA. Of course that would be a violation of your Constitutional Rights, but no one reads that old rag anymore anyway.

 

ok im scheduled for orientation i report monday so here is my absolute last opportunity to get the real scoop islandstar the place to be, please verify im hearing all kinda storys i want tje truth

 

Polarbear, I'm Ranger, and I've been on both sides. There are clear advantages to being leased to LS and clear advantages to running your own authority. As a carrier, I did 100k in a year with Landstar, only running two trucks. Since I've came to LS in 09, they have made it even easier for outside carriers to haul freight with load alerts and such. With the Savings Plus Comdata card, you can still get the cost+ fuel discounts, as well as be paid in a couple days for a 1.5% fee. You can also haul other freight. The downside is, in general, LS takes a 20% or more cut of the freight bill. So, you're at best case scenario, 21.5% compared to 27-28%. Keep in mind, it will be your responsibility to do or hire out all of your filings KYU,NYHUT,NM,OR, AR ad valorem, KS ad valorem, NJ corporate tax(if you are a LLC or corp), as well as others I'm sure I'm missing. Now you pay these at LS already, as they just magically appear on your settlement. Factor in log auditing, drug testing, and keeping your records straight, and the percentage gets smaller and smaller, especially if you factor in time. Add in the loads that aren't available to outside carriers, and it's easy to see how it can be a losing proposition. That's the doom and gloom. Now, if you're the type of guy that wants your authority so you can haul what you know (LS freight) while recruiting direct customers or good brokers, that's another story.

As far as the EOBR's, now that FMCSA got their foot in the door with them before the court ruling, it's a snowball. Inway has risen above the threshold, even though they've reduced their HOS out of service by 18% in the last year. That's because their peer group is running elogs, and that is how FMCSA is going to get everyone on them, unless the industry as a whole revolts (hahahahah)

Good luck in whatever you choose.

 

If you're a go getter, know what customer service is, and are prepared to cold call agents and research freight, you'll do fine. If you expect someone to do everything for you, you'll crash and burn. It's just like real life! Give it 6 months to get your agent base, otherwise you're not giving it a chance. You're coming in at the worst time of the year, because everyone knows freight crashes after Christmas. However, a lot of lazy LS drivers take January off, so you could possibly build relationships with agents in need, due to lack of truck capacity in certain areas (wherever it is snowing). Good luck

 

Thanks 40, that is good info. I am not a paperwork lover, but I have automated a lot of paperwork that used to take me hours to do. You are right on the industry revolt, like THAT is going to happen! HA! It should and I would support it, but I don't know what it would take. Half of these drivers are already living in their trucks and eating peanuts. There really is nowhere to fall to from that point. What are they going to be threatened with? No more peanuts?

 

Do you have to call and talk with broker's to discuss rate's or is it setup already when you choose a load from the board? I have to deal with the broker's at my current job on rate negotiations. I'm a company driver and run the truck like an O/O and find that running the truck at 67 gets the best fuel mileage but set a minimum threshold of $7K a week for the truck to turn a decent buck then take care of a truck not used when a load is cancled and all that good crap. I'm getting ready to step away though because its good money as a company driver but not good enough when I can own my own truck and make more for the extra work involved. Only reason I'm asking is because I don't care much for dealing with brokers as they tend to waste a good bit of time with the "I'll have to get with my boss to ok that rate. I'll call you back" bit. Just wondering how it works. I see Schneider has the same type of system setup to pick your loads in advance from their board but you don't deal with a broker at all because the rates have already been locked in.

 

When you do see a load, that is interesting to you, you do have to call the Agent to get all the info and dispatch. We do not have a central dispatch, as most of the loads are the Agents own customers, not Corporate's. The rate posted, on the board is the minimum. Sometimes you can negotiate more, but it will never be less. Unlike Schnieder, we don't have any company iron to compete against.

 

thx forty ur response appreciatted

 

Every load is different, but yes sometimes the loads that agents get from brokers do end up paying less, at least that has been my experience. They advertise it for $2.00/mile and when you call they say, "oops, its not 4800.00, its 4600.00 instead. That was a wrong figure". To which I say "goodbye". Unless 4600 is a decent rate anyway. It all depends. Most of the time the rate you see on the board is the rate and it is unlikely you will get more unless you are detained at the shipper, reciever, they want extra services etc. etc.

 

Your signature tag is "Capitalisim- The greater of all evil." How can you be an O/O and believe this?