New Landstar Agent

Dewey, you need to make sure it was the actually the agent's fault on this one. There are a few firms that Landstar agents deal with that are not honest with the agent and the agent is caught by surprise when you, the BCO, call them and ask what is going on. And sometimes it is the actual shipper who will do this without letting anyone know because they feel they can get a lower rate for the load. I do not know what you did in this situation, but hopefully you were on the phone with the agent BEFORE you let them load your truck. It is easier to fix the situation before the load is on then after.

 

Same here, Marc. I usually try to determine our average lane rate for a load I am interested in BEFORE I call to discuss the load. I have had brokers get quite upset when I tell them that our BCO's would not even consider that price. The shipper wants to move it as cheaply as possible while the driver has to get a decent rate to cover everything that goes in to hauling a load. I have found it interesting that 3 different agents can post loads from the same customer in the same location and the rate spread per mile is over $0.50 different. Obviously the shipper will pay the higher rate if the agent would take the time to push it up. In real estate it was location, location, location. In the freight business it is negotiation, negotiation, negotiation.

 

Hi I'm trying to became a Landstar Agent I was trying and trying to get some information but is hard I called Landstar Corporate and they didn't give me to much encouragement to do so... I have been in business for more than one year I have my own authority and Dot and i have a few customers already ... I'm carrier but i want to became an agent !!! how I can start ... what are the first steps do I have to follow ??

 

Lady'Di I suggest you look up a company called Farm2Fleet. They may be interested in an agent with established customers.

 

I think you are actually required to have a customer or two now……..

 

Where did you go for training? Can you get me to someone to become an agent?

 

Ok if I am understanding this thread correctly. It seems a new Agent like Marc does not have much direct business yet. He has had some success in getting a few direct customers but it was a very hard sell to get them up to a good rate for the trucker. Most of his time looks like he is acting as a load finder for LS drivers. Is this correct?

His double brokering is in essence load finding????? I am assuming he is looking for posted LS trucks or is looking for a truck he has dispatched and is trying to find a load for these LS trucks. He is then looking at other brokered freight outside of the LS system and bringing that freight into the LS system with a committed truck.

So outside Broker has deal with shipper for 2250 on say 900 miles, Broker posts on ITS for 1800. Marc sees some LS trucks near it and contacts broker with offer to post it internally on LS bco board. Marc then contacts LS drivers first for the 1800 gross if no takers post on the bco board. Once he has a truck he must call outside broker to see if load is still available.

Assume load is good. LS bills outside broker for 1800, pays truck using LS trailer $1170 on 900 + say 50 DH miles so All mile rate to LS truck is 1.23 PM (and driver not real happy). Marc gets his Agent 7% of gross 1800 for $126 and outside Broker firm gets $450 on load (split between firm and their Agent). LS keeps $504 to cover operations and profit for LS (truck and Agent fees already covered).

This is how a $2.50 mile Freight becomes a $1.23 ttt. On the surface I would say $2.50 PM freight is a lot easier to sell to the shipper than say $3.00 to a shipper. At 3.00PM the LS truck would get 1.48 PM , at 3.50 PM they would get 1.72 PM going through a outside Broker. Assuming the outside Broker only takes 20% and a 50 mile DH (with a LS trailer)

If Marc sells direct at 2.50 PM the BCO gets 1.54 PM, @ 3.00 PM BCO gets 1.85 PM, @ 3.50 PM BCO gets 2.15 PM.

Lots of slices in the Pie, Guessing it is really hard to get a great rate for the BCO. Tons of work. A good Agent or Broker is worth a lot to the Trucker and the Shipper. Marc doesn't drive a truck any more, but I am guessing he is on his computer and phone a ton.

Am I understanding this correctly?
Seems like it might not be very easy to get shippers off of a gross rate of 1.75 to 2.25 PM? the numbers all look way worse at those lower rates.......

 

I didn't get much of that but, many outside LS make the assumption that if a driver gets %65 of 2.50 that the driver gets %65 of that. 1st %65 of 2.50 is 1.62. Its been explained too many times….I was about to do it but don't feel like it now LOL

 

So there are more internal steps being deducted from the gross even on a LS direct sale to a shipper? Like is there a terminal to terminal rate? A shipper to receiver rate? a combination if there is a terminal in use on either end?

For give my ignorance on how these larger Companies operate. My experience is as a IOO with direct pickup and drop offs using my own trailer.