Landstar Supply Chain Solutions (NLM) being bought by XPO

XPO has gotten cheaper and less accommodating with their growth, in my opinion. It seems like they are tracking along the TQL model, only with more haggling over accessorials to add a little sting to the mega-broker low ball pricing.

In fact, if we're talking about load board calling in a desperate market, I'd call TQL before them. Or, more likely, just leave MT before calling either of them.

Unless you're competing in the race to the bottom, I wouldn't see much of a threat to your business.

 

It seems like there is revolving door of large brokerages. Someone new starts growing fast borrowing a bunch of money, etc. XPO is the newest addition to the list. They are growing fast. I haven't dealt with them much, but if they are worse than TQL that is saying a lot. I refuse to call them.

 

Never heard of them before. How did NLM fit into the LS model?

 

10 4 on that. Recently XPO was added to my no loads list and yeah, if I were desperate, really desperate, I'd call TQL first.

 

so NLM = Landstar Supply Chain Solutions ? well, if they can't even get an acronym right.... Do I want to know what XPO stands for ?

 

3PL Never lose money haha I think it's "national logistics management" it manages the supply chain for auto makers Ford, GM, Nissan etc. NLM doesn't make it's money from the rates off loads. They make it off access to that freight and manage the carriers accessing it. One of the problems or possibly a frustration for Landstar is the vast majority of that freight never went on Landstar trucks and never would have. The automakers have their own preferred carriers they work with. They say who they work with not NLM. All a carrier has to do is maintain a good service record. These are loads where you have to call in with updates within 7 minutes of "arrival at shipper", your bol load info when loaded, sometimes get calls even in transit. Failure to do these check calls and keep the system updated is a service failure regardless if the truck is on time. You have to do exactly what you say you will on these loads. You can't load them on a slacker's truck who thinks the updates are annoying and unecessary or you'll lose access. Thy have tariff on any given load which is the maximum rate they will pay. It's normally a fair rate, it's not like gouging brokers, more in line with what you do working direct Danny. You CAN bid above tariff, on many loads I cover from it they have to squeeze another $50 or $100 or I won't/can't accept the load/rate. We sometimes get those but many times don't. Hit and miss there circumstances dictate. Tariff will get the load most times unless a carrier is bidding less than it, which does happen. Sometimes I have seen LS agents, very few of them post these loads. It's very rare and they risk losing access if the put on the wrong truck inside or outside (technically I don't think they are supposed to broker it outside but they do) in some circumstances I have seen these loads from LS agents rise, rise, rise after time but that is very rare. Usually by the time it gets to LS agency it has been passed over by several other carriers already or those other carriers have been covering dozens of the loads and already in on the action. I used to get some of those loads from Landstar agents then I saw how much Landstar missed out on when we got in with Nissan and NLM. Lots more opportunity and volume that way instead of hit and miss. The rates were lower but of course still good rates and much better than typical loadboard stuff.

 

Interesting post now that they bought Con-way

 

Who bought Conway?

 

XPO is buying all Conway divisions and rebranding them as XPO