The ugly truth about Landstar

Been a BCO for Landstar for a while and yes I basically agree with Jeff. But only because I feel Landstar miss represents how effective the load board is. BCO's new to Landstar have no real choice but to work off the load board until they make some real solid connections with agents who can eventually offer them the better loads never posted on the load board. This may take months or longer to do as the freight is weak in the first place. For a company like Landstar that places so much of its emphasis on the load board for the BCO's. Its embarrassing to have that main link to loads be so non productive for many. I have been told by many who have hauled Landstar loads that their rates of some of the lowest and are typically considered "last resort" kind of loads. I know myself looking at the load board it can be rather discouraging and am amazed at how agents try and distort low rates by posting the load with the FSC include. I have complained myself to my BCO advisor but as some have said Landstar is about moving loads and that's where its profits come from. Its really not so much about any BCO being successful. Let's be honest, Landstar would survive without BCO's. They would become another CH Robinson and go about their business. What frustrates me about being a BCO and working off the load board is the fact you can haul good paying freight to a weak area for outbound freight or you can haul cheap freight to another area with even cheaper freight. Its more about losing less money then actually making a decent profit. Dead head can be ridiculous with Landstar, so just be prepared to understand how to get a decent paying load is. You may need that extra money to buy fuel to get you to that next load. Yes, some old timers with Landstar will argue this type of thing does not happen. But I can say honestly it does and they simply do not run any freight on that load board and do not realize how bad it is. Some old timers probably do not even look at the load board anymore. Landstar has some real issues going forward with creating more customers and crating good lanes for BCO's. But I am not so convinced Landstar is that concerned about their BCO's being successful? That's just me and I am not bitter on my choice I made to go to Landstar. But the reality is that freight is slow right now and rates are bad.

 

Jeff,
Did you reach out to any of the Landstar upper management about your concerns early on? I dont believe any of them read this forum but would probably appreciate your opinion. Especially the part about the trailer and advisers. I have been with Landstar since 1999 and believe me, it hasn't all been peaches and cream. I quit one time back in 2003 and went to UACL for a couple years. That was horrible mistake. I can say I've usually gotten my way or at least felt better about the situation after talking to one of the VP's or someone of authority.
2 weeks waiting for a trailer is #########. Thats ridiculous. Someone higher up ought to hear about that.
Overall, I have found that Landstar was the best place for my trucks. I have paid off 4 trucks leased to Landstar and have made plenty of money over the years. It does take time and networking with the right agents and BCO's. Yes...other BCO's can be instrumental in helping you as well. The ones who are doing well could help introduce you to some of the "good freight".

The grass aint always greener everywhere else. I was leased to 5 different companies before coming here and UACL that time I got mad.
We are all independent business owners. Its easy to get pissed at "the man" but we are still independent to do what we see fit for our business.

Good luck in your future endevours.

 

Just a couple weeks ago I talked to my BCO advisor who did say many new BCO's were dead heading 1000 miles for trailers.
Or they could sit and wait for one closer which was somewhere in their home network. It is a real problem and its unfortunate that they bring on BCO's without the means to get them working from the day they finish orientation. I have very little information to understand why this is going on? But I think Landstar has just become another big company that has lost some of its good management skills. I know for a fact Landstar has turnover problem in corporate just as much as its agents and BCO's. So that does that help matters.

 

I think too many drivers just cannot handle the "freedom" of a system such as Landstar. You need to have some basic understanding of what freight pays, what doesn't, really just common sense about where the money is at or when you've got an agent in a position where they have no choice but to pay your rate. I've got news for you - if you're new to this kind of freedom and thinking that you will book a week or two or three weeks ahead of time... ....you are going to be moving freight that routinely gets moved for very cheap and unprofitable rates. They post some loads up on the boards months in advance, now why in the world would a load like that ever pay anything especially if someone got a great rate going down to where it's at and figures they'll just take it for whatever is offered? That is how it works.

You solar powered drivers who cannot stand not knowing what your next load is going to be, or not having apre-planned week laid out ahead of you, you are going to struggle finding rates. Once you figure that out then you start working the overnight stuff, or picking off the late night Sunday loads that no-one else can book cause they wanted to drive 1,000 miles over the weekend for $1.30 a mile, then you realize hey, it is possible to get fantastic rates on some of this stuff. And over time after you've hauled enough of that freight you establish yourself as a dependable driver, someone who is worth those higher rates, and they are calling wondering where you are at and trying to give you that freight. And with time you'll end up being able to book 3 or 4 loads a few days in advance with your trusted sources for profitable rates...

Nobody is going to give you anything, you're gonna have to earn it, and that doesn't mean you need to haul cheap loads to prove you can deliver on time... that's not what it's about.. Now I've never been leased to Landstar but I almost pulled the trigger about a year and a half ago on leasing there. I chose another option instead. As it is I pick loads off loadboards all the time and pull top dollar rates all the time. I even have networked with a few LS agents who call up offering great things from time to time... When I was a newbie none of them ever called me.. ...I found the stuff and knew what I was in. And took it from there. I've done the same thing with other mega brokers like CHR and even smaller ones..

I don't stay as busy as I'd like to, yes it is slow and rates are down, but in a year and ahalf I am in a place where I rarely have a problem finding enough loads from the folks I have networked with. people who pay solid rates every time. If I can do it on leftover loadboards I know I could pull it off at a company like Landstar with all the inside track I know for a fact they have on some great freight. Some owners need to step up and ask themselves, what exactly am I doing that limits what my potential really is?...

 

great post!

 

You make some good arguments RollinCoal. The problem is you have not experienced the Landstar load board where good paying freight is freight that goes into areas with no outbound freight or very cheap. You do make a good point about the need to make solid connections with the people who can provide those good paying loads. I myself take it one load at a time. But if you read these forums about Landstar you will find some with many years on at Landstar who have become frustrated with the direction of Landstar and its agents. So its not just the inexperienced rookies finding difficulties with how Landstar provides load opportunities. I think many forget that their is no "freedom" to go where you want to go if you cannot make money. Lot of guys like running South especially in the Winter or they avoid the tolls going out to the North East. But truth be told if the loads that pay well go there. You must go there. The other variable with Landstar is equipment. I can definitely say van BCO's make less on average then a Step deck or Flat. That is a fact in the marketplace with loads. I think many times BCO's fail at business management rather then anything else. After all when you get forced dispatched the company is making the business decisions that benefit the company. Now you are the company and you must decide where you go and if it makes you money. From my experience with Landstar and van freight, the BCO's that make money in that sector are the ones who are on automotive or on a dedicated customer account with a agent. Because they have constant freight and your not sitting at a truck stop trying to find that next great load.
If your going to be a BCO that has to work within the load board then you need a person searching and calling to find that load before you deliver the current one. In the end I think you need to not only understand that just because your not forced dispatched does not mean you do not need to force yourself to take those loads that help the bottom line but may not always be the ones you want to take. The other elephant in the room has nothing to do with freight causing their demise. It has to do with a expensive repair or a personal expense that simply overcomes your ability to recover. A lot of what I have seen in recent years since the recession is more drivers buying older fleet trucks to try and become a owner operator. many times with very little in savings initially to cover break downs or major repairs. The end result is early failure. Landstar's model has always been drive less miles for more money. But I think they forget to tell everyone that means all miles. Deadheading is a way of life for this type of system. Don't expect every where you deliver to go 50 miles to your next load. Look out far enough to find better paying freight. Its not like working for a big company where that next load is just a few miles away. Companies like that plan lanes and drop and hooks because they typically give customers breaks on rates because they want those types of lanes. Landstar is not so much about lanes unless you the BCO can find a couple agents with regular freight at both ends. As I said earlier, the more successful BCO's with van get on automotive or get on a account . Its no different then a dedicated account with any other company. The end result is maybe a little lower rate but a lot less dead head. I have known BCO's on account who deliver freight one way and dead head back for another because it pays so well. Its much better then looking for a back haul and its more productive to dead head back to a good paying load then sitting at a truck stop for a bad one. I think what Rollin Coal said just proves that the failings of a owner operator are not exclusive to Landstar. Its a different system that many simply do not handle well.

 

I am not going to dispute anything the OP posted as it was HIS experience and not mine, but I must add my 2 cents nonetheless:

first and foremost I'm sorry the OP had such a bad experience with LS and I wish him the best of luck wherever he goes or does.

I have been a BCO here at LS for over 4 years and doing just fine. LS is NOT a perfect company by any means but I also don't believe there is such a thing especially in this industry. I personally am making enough to pay my bills and squirrel away a little each week, which with the current economy is about all I can ask for. If anyone thinks they are going to become wealthy driving a truck they are sadly mistaken and have a better chance at winning the lottery.

LS will tell you upfront in orientation that your success or failure here is solely on you....they say this because YOU are the one calling all the shots, YOU decide what freight you want to haul (or not) for the "advertised" rate and freight lane(s). This in its self can be a great challenge for many whom are used to having dispatchers or load planners telling them where to go and when. They also tell you that "one" key to success here is to develop good rapports with agents as the "good loads" never make the load board. This takes time. I have several agents in various places across the country that I will call upon when I am looking at taking a load into, as the OP stated...a "dead area", this helps me tremendously in deciding on taking certain loads.

As for the trailer utilization department, well I have seen first hand from friends and other BCO's here that yes there have been times when they have to go long distances to get a trailer.....HOWEVER, what the OP fails to mention is that LS pays you to go get that trailer....that is a FACT. I have also seen that when there is a waiting period for a trailer they will give you "busy work" such as local drop and hooks until your assigned trailer is ready, that may not be the most ideal situation but at least you can be making some $$ than not....I can NOT say for 100% certainty that this is the case with EVERY new BCO but I do know it happens.

Bottom line is that LS is NOT a good fit for everyone.

 

look, being in business is about negotiation, and negotiation is about leverage.... who has it and who doesn't.... when you are in an area that is short on trucks and long on freight, then you are in position to set the rate, rather than having the broker set the rate... that is the reality of the spot market and brokered loads. Learn your markets, learn your lanes, learn your operating costs, and learn negotiation... there are a ton of techniques and tactics in negotiation, and if you're going to run a trucking business then you better learn to negotiate...

The problem with an operation like Landstar, from what I've heard as I've never been leased to them, is their loadboard.....

For the BCO it's a "take it or leave it" situation.

Now, walking away from a deal is a negotiation tactic, but if that is your only option, then you are very limited as to the practicality of that, and your situation...

A one dimensional load board, with all loads being offered by one broker, at a fixed price.....in a take it, or leave it situation....

Is a gilded cage.

 

You must be talking to the wrong people to get your Landstar Info..I am making a killing over here and only work 7 months a year...

 

Probably specialized.... I think the specialized haulers do ok there....