Sorry if this is a dumb question BUT was that $700 what showed on the board? before or after LS got their cut? We're still debating on whether to lease onto LS or go straight under our own authority...so thanks for this thread is (and you) are very imformative.
Rate comparison between own authority and Landstar
Discussion in 'Ask An Owner Operator' started by Preacher Man, Aug 8, 2015.
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For several months Landstar has really been in the dumps. Total loads on the board has been averaging almost half of what it had been last spring, early summer. Rates have also taken a nose dive. What has saved our bacon is an agent that works as a dispatcher for a group of drivers. He has been able to keep us rolling and at the rates we need. When I talk of what is on the board, that is before Landstar takes their cut. Because of the freight downturn, we have adjusted what we do. I go home every other week instead of weekly. We'll have to do this until things pickup.
LampkinOO Thanks this. -
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There's been nothing but scraps around my home base TN area on Landstar broker for at least 2 years now (van freight). This past year LS broker was the absolute pits. Everything is down everywhere on open loadboards, not just LS broker. You can still make it but you're gonna work hard for it. Kind of seeing the same thing as Preacher Man in that it used to be easy to go out and back home in 4 or 5 days and make great money. But not so much so anymore.
If you're going to get your own numbers you need some solid direct, not ######## scraps direct - good direct, and just supplement that with what good brokered freight you can scrounge. Most of the brokered stuff right now is the dregs. Going to be an uphill battle making any broker connections in this current market. If they don't know you you're just another cheap truck to be taken advantage of. Even the ones that know you are scrambling to make as much as they can off cheap carriers as long as they can. -
Something to keep in mind is that just because you see a load on an open board doesn't mean they will book the load with you. We have a problem with many brokers who won't work with Landstar because of double brokering, turning uncovered loads back in at the last minute and drivers not getting the job done. As a driver with a new authority you have no track record and so many brokers won't use you. You would have to find brokers to work with while you build a track record.
In the current climate, I think I would go with Landstar and then find a broker who will work with you to pull freight from other boards. Regardless of what you do, it will take at least a year to really get things going.whoopNride, hawkjr, LampkinOO and 1 other person Thank this. -
Curious is Fleet2Farm or Schneider Choice would be better options
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The challenge in this market is expectations. Sadly, many think 2014 is the baseline to base things off of. But there where many external factors that created capacity issues and drove rates higher. Now has the volume has normalized, fuel is at levels I am not sure any rational person thought it would be at (looking at the prices on our new program I saw a lot of $1.30 rates) that puts gross rates lower but profits should be higher.
If anyone looks at 5-year rate trends after taking fuel out you will see that we still increasing. But many have kept their gross rate per mile fixed and not accounting for the fact that costs have fallen off a cliff.
Bigger challenge (as I am seeing it in our fleet) is because of the decrease in freight volumes, you have to have the relationship that are going to talk to you before they go to the open boards. And then you need to make sure that you are realistic about what is happening in the market. Someone can love you but if your rate is higher than they are making they have no choice but to look for someone else.
I would also expect to see more customers are going to be looking to work with asset based brokers in the coming years. They have short memories and are hoping that they will be spared the next capacity crunch if they have contracts in place (not that it helped them in 2014).whoopNride and Skate-Board Thank this. -
After doing this for many years, I am always wondering why 2014 seemed to be so wonderful To so many Compared to some years in the past it wasnt anything to go wild about. I guess it depends on your point of reference
Last edited: Jan 19, 2016
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