Very Little Negotiations

Not a lot we can do to stop them fron doing it, except calling them on it. One of my customers uses me exclusively - I've seen Landstar repost those loads, too, and then try to call me to get the load. It's deeply irritating.

 

Do you have a non compete contract with them? Like if they work directly with you customer you get 15%?

 

Yep, we have a non-compete. We also have a "no double brokering" clause. I've had to beat them about the head a couple of times with that. It's a matter of scale, though, seems like. You raise hell with one office doing it, two more pop up to take that guy's place.

 

Landstar gets away with what it gets away with because of its sheer size and scale. Truthfully the big legal reason why brokers hate double brokering is the risk that the guy you paid to haul the load won't actually pay the guy who hauled it and you'll find yourself fighting his attempt to collect on a load you already paid for.

Landstar at least is going to pay what they agreed to pay to the carrier... Which means it's not as bad as double brokering theoretically could be. My big issue with Landstar double brokering is that they are comically promiscuous about carrier selection... And I'm kind of the opposite.

I honestly feel like any broker that gives Landstar loads is flagging themselves for PVP and has whatever happens next coming.You're paying a major competitor to do your job for you... what could go wrong?

 

Sorta. I'd have to look at the contract verbiage.

 

Not really.

Landstar is basically taking a slice off the rate.

Keep in mind, landstar may have a wider pool of signed on carriers than a small broker. Case in point: my first go to broker is CHR. why? They give me zero hassles, and I qualified as a "key carrier". Going thru carrier setup, paperwork while driving is not possible, so a simple peek at the CHR loadboard gets me reloaded quicker.

I suspect that's the reason Landstar appears to "double-broker"

 

If LS gets the load covered, PPDCT still gets his cut.

The loser is the Carrier.

PPDCT posts the load for $3/mile, LS approved carrier gets it at $2/mile, thru LS system, then LS keeps $1/mile.

As I like to say, "convenience costs money".

We don't know what other "perks" PPDCT offers/lacks compared to LS.

I booked loads with smaller brokers that required me to print/sign/fax carrier packet + my MC cert etc, while in middle of IOWA!!!!, luckily I have a mobile office, so 30 mins on the shoulder took care of that.

Imagine same scenario, with an e-log driver, no mobile office, but already plugged into LS.