When did Landstar agents begin brokering out freight?

[Cam]

Gman, Mike, anyone else who thinks you can become a millionaire in 5 years at Landstar.... 8)

I first heard it maybe in January. I was in Phoenix looking for a load. I got a call about a load, 'Oh boy', and I called back right away. 'I just brokered it out' is what I heard, the first time I knew anything about that. The load boards are lean, lean, lean. Chicken feed in California, the NW and my next destination, Denver. It wasn't like this just last year.

I'm told agents actually make more when they broker out a load than when they give it to a BCO- that's been confirmed more than once. So, my question is this, when did it start? I haven't found a good load going back to the house in over two months! Is this because new Landstar policies have made our selections fewer or has this been going on all along, even back in the days when you could become rich if you could 'think outside the box' :P

BTW, the load I'm taking out of Salem OR, $1.21 all in to the truck in a $3/gal fuel climate. 40k ish on the weight, hazmat, destination Denver! I booked this load 5 days in advance as soon as I got the call. I equivocated at first, but it was better than anthing else I was seeing and I didn't want to get stuck up there.

[Cam]

Now that I think about it, I was talking to a guy at the Flying J a few years ago who left Landstar, got his own authority and was still pulling Landstar freight. So, I guess the brokering out has been going on for years. Now, I did hear somebody say that Landstar began 'pushing' the agents to broker out loads last spring.

Right now, the load offerings are terrible compared to last year. It's either due to the economy or it's due to policy changes at Landstar they don't tell us O/Os about, or both. It's like the fsc, apparently they purposely try to keep their guidelines from the O/Os. I just want to know what if anything is due to head office decisions so that I can make decisions of my own. :?

[GMAN]

Gman, Mike, anyone else who thinks you can become a millionaire in 5 years at Landstar.... 8)

Na, it will take at least 6 years. :wink:


I think they were brokering out freight when I was leased to them and that has been several years ago. I have heard stories about the splits and gotten different stories. Some say their brokered freight pays the broker carrier more (80%) while the BCO would get 73%. I think it depends on how much they need to move the load. I can tell you that I am making more per mile running my own authority and dealing with Landstar. Since there has been such a long gap between the time I leased to Landstar and now, I am not sure that it would be a fair comparison. I will tell you that the cheapest load I have taken from them running my authority, at least in the last year, has been $1.85. That was coming out of Florida. That was a very good rate coming out of that area. It was an unusual situation that I could get that rate. I believe everything else I have accepted from them has paid me at least $2/mile. There was one other load, but I don't recall what it paid. It may have paid less. It isn't that I have not been offered much cheaper rates, but I won't take them.

I have been told that Landstar is pushing for more broker carriers to haul their freight. As a broker carrier I can get most of the same benefits as leasing on with them, if I want to take advantage of them. I won't go into all of the details right now, but will if you want to know. The primary advantage I have as a broker carrier over a BCO is that I can go elsewhere to find my loads. As a BCO, you can find your own loads but must run them through an agent. I did that a couple of times when I was leased to them.

I think you have the impression that I think Landstar is the greatest carrier with whom to lease. That isn't necessarily the case. Sometimes a BCO or owner operator is treated like an employee. If you own your equipment and lease to them, you are an independent businessman. One of the negatives about them is their bureaucracy. They have gotten so large that they have become pretty rigid in the way that they deal with their owner operators. I don't care for that part of their business climate. I also think some of their agents skim money off the top before running it through Landstar. Many of their agents have their own brokerage businesses aside from Landstar. In fact, some were in their own brokerage before contracting with Landstar.

This business is about negotiating. When you run on percentage, you have a greater opportunity to negotiate better rates and terms. It is up to the owner operator to decide whether he will run for a rate offered him. With a carrier like Landstar, it is up to you to decide whether to take a load or not. I know of several BCO's who have been leased to Landstar for a number of years. Evidently they are happy with their choice. I have known of some who previously ran their own authority who have gone to Landstar and similar carriers. The main reason is the paperwork.

As a broker carrier, I would like to run more Landstar loads if the price were right. One thing about Landstar is that I don't have to worry about my money being there for me.

If I were to give up my authority I would consider Landstar along with a couple of other carriers. I almost went back with them several years ago. In my situation, I am glad that I didn't. I doubt whether I will give up my authority to lease on to a carrier. It really isn't that much of a hassle dealing with the extra paperwork. Most of it has to be done even if you lease to a carrier anyway. It does cost a bit more for my insurance, but I pay quite a bit less for my base plates and permits by going through my home state. I don't think every driver is cut out to be an owner operator. Nor do I think every owner operator should run their own authority. Some people are just better at the paperwork side of this business than others. Some simply don't want to deal with it. They would prefer to driver and let someone else deal with the paperwork and red tape. It takes all kinds to make this business work. In an ideal situation, I would like to see everyone running their own authority, but that isn't going to happen, nor should it.

[GMAN]

Now that I think about it, I was talking to a guy at the Flying J a few years ago who left Landstar, got his own authority and was still pulling Landstar freight. So, I guess the brokering out has been going on for years. Now, I did hear somebody say that Landstar began 'pushing' the agents to broker out loads last spring.

Right now, the load offerings are terrible compared to last year. It's either due to the economy or it's due to policy changes at Landstar they don't tell us O/Os about, or both. It's like the fsc, apparently they purposely try to keep their guidelines from the O/Os. I just want to know what if anything is due to head office decisions so that I can make decisions of my own. :?

Cam, you have a couple of things going on right now. First and foremost, the economy has been in a slump for almost a year now. Things haven't come to an abrupt halt, but several industries have slowed, including construction and automotive. Both are critical for the growth of rates and trucking in general. One thing I dislike about Landstar is the way they allow their own agents to compete with one another. When I was leased to them I found 3 agents with the same load, all with different rates. All that does is drive rates down. There is a Landstar agent who now has an account hauling tractors out of Gainesville, GA. She really slashed the rates to get the account and is now having difficulty covering the loads. I saw rates about $0.40-50/mile higher before she got the account. I won't haul for them at the rates they offer. CRST Malone used to get a much better rate from them than Landstar is now getting. I will NEVER haul her freight just on principle. You don't have to give away the farm to get the business. I get and keep business by providing better service, as do others. I won't get into a price war to get or keep an account. Unless an account if profitable, I won't get involved with them. I have had brokers to tell me that they can get something hauled for less than I will haul it. I tell them, fine. Let someone else haul it. I won't haul below a minimum amount. If a shipper or broker can't or won't at least meet my minimum then I will either sit or deadhead out of that area.

[Cam]

You're a good sport, Gman! Even as I wrote that I was thinking, 'Man, as much as he helps you, you don't have to be that nasty with him!' :twisted: Hey, I've got to work, can you believe that!?! :x I'll be back.

[GMAN]

That is all right, Cam. If you are having difficulty finding better paying loads, let me know. I will be glad to share a few names with you. Some had good rates when I was leased to them. Just tell me where you want to run.

[rank]

Cam,

Go here (page 2) for one of my Landstar rate dialogues.
http://www.classadrivers.com/phpBB2/...r=asc&start=15

I just got a call from Landstar and hauling a load 2800 miles for $1.50 per mile.

Actually it's $1.62 per mile but I have to deadhead 200 miles to get it.

[Cam]

How about this one?

Company Logistics Agency BRF
Contact Number (800) 233-0026
Load Number 397423 Load Type T
Revenue $700.00 Rate/Miles $0.87
Rate Code CSA N
Pickup Date 05/09/07 00:00 Delivery Date
Origin GREELEY, CO Destination COPPELL, TX
Trailer Group VAN Trailer Type VAN
Length 0.000 Height 0.000
Width 0.000 Load Weight 0
Miles 803 Commodity
Pre-Loaded N A&E N
Date Posted 05/08/2007 Time Posted 13:31
JIT Team Load N

It's a full truckload, $.87 x .65= .55/mile. What do you think, should I take it? I wonder why it doesn't tell the weight... :?

[Cam]

I just got a call from Landstar and hauling a load 2800 miles for $1.50 per mile.

Actually it's $1.62 per mile but I have to deadhead 200 miles to get it.

Yeah, see, it's your damn fault I'm starving to death!!! 8)

They pay for your fuel though right?

Doesn't matter. They just called back and asked if I had a headboard. The load is 54' long and can't hang over the back the whole way. So much for that load.

[Cam]

They pay for your fuel though right?

Doesn't matter. They just called back and asked if I had a headboard. The load is 54' long and can't hang over the back the whole way. So much for that load.

That's it, that's all in, every bit of that .55/mile goes to the BCO!

Of course you know I don't believe that guys who use Landstar brokerage are doing anything wrong. It's an HQ decision. I'm just wondering if they are brokering out more now and if that has contributed to what appears to be a bigtime slow down since last year.

Rank and Gman, I still want to follow up. It's just this 'work' thing, messes up my internet time. :x

Ya, just all of a sudden they are calling me and emailing me about loads. I setup with them last year and never heard a word from them until the other day.

What is BCO?

[mike3fan]

What is BCO?

"Buisness Capacity Owner"

Fancy wording for O/O,Slave,Another #

[GMAN]

Of course you know I don't believe that guys who use Landstar brokerage are doing anything wrong. It's an HQ decision. I'm just wondering if they are brokering out more now and if that has contributed to what appears to be a bigtime slow down since last year.

Rank and Gman, I still want to follow up. It's just this 'work' thing, messes up my internet time. :x

I hate it when work interfers with my internet time.

Cam, these carriers are going to do what is in their best interest or makes them the most money. There has been a general slowdown in this business since last year. It isn't just Landstar. However, it could also have something to do with where you are running. There are areas of this country where freight is typically dead or slow. Unfortunately, I think it will continue to be somewhat slow this year. Not like it has been, but slower than usual. You just need to work a little smarter to make a good living. I have seen rates come up. I also see more availability of freight. Don't get discouraged. Things always get better.

[Cam]

Man it's hot in Cali today. But, I got loaded a day early and now I can take my desperately needed beauty rest, wash my nasty body and maybe click off 100 miles or two. Right now, I'm listening to George Tenet's new book.

Rank, yeah I remember that thread. I re-read a lot of it though, there is useful info in there.

Steve, at Landstar we are not mere O/Os

G-money, I'm cooling out on the brokered freight thing right now. I keep my ear to the ground and my eyes wide open but it sounds as though it could all be due to the general freight slowdown. I also post to a fledgling Landstar board and one of the experienced guys over there thinks the situation at Landstar is just a reflection of the overall situation in the country right now. Still, the volume at least on the boards seems nothng like it was at this time last year.

One thing, I called an agent and she said they never post their loads on the board :shock: I knew that happens at times but I've never heard an agent say they post nothing and I've also heard the erroneous argument that they are required to post everything. I guess the moral of the story is not to worry about pestering agents by cold calling them and saying,'Hi, name is Schmuckatelli, got any high-paying freight going to a good freight area that you can't get rid of?' (or some variation thereof.)

[GMAN]

There are some agents who have certain BCO's running for them. They will offer their best loads to them first. If they cannot cover them they will either post them on the Landstar board or some of the other loads boards. It is much easier for them to book a load if they do it with a BCO or approved broker carrier. As you found out, some of the best paying loads will never see any load board. Once you find an agent or two who has freight in your primary travel lanes and good rates, you need to continue to build that relationship. It is easier for an agent to call a couple of dependable BCO's or broker carriers whom they know. There is nothing wrong with calling agents to see if they have something you can haul. You should have received a book of agents with a place where you can make notes about them such as where the pull freight, type, etc., There is a system in place with Landstar. But you need to work the system.

[rank]

I've pulled a grand total of 11 loads for Landstar. The 10 that paid well required double drop trailers. The one that paid crap was a step deck load of farm equipment that I will never do again for that rate.

I only use them when they are desparate enough to pay ....which isn't very often.

[GMAN]

Rank, I have no idea how many Landstar loads I have pulled. I have turned down many more than I have taken. There are some who typically have cheap freight. There are a few who nearly always seem to have higher paying loads. One of their agents whom I have hauled seems to have dropped their rates, at least with one shipper. It may be because another carrier has gone in and undercut their prices. I believe Maverick is the culprit, in this situation. I suppose there are no real salesmen any more. I would NEVER lease to a carrier who's only selling point is a cheap rate. If it was Maverick, they will only have the account until someone else comes in with a cheaper rate. I have never seen the point in hauling freight for cost or less just to get or keep the business. I had an account that I no long haul for because of rates. Their freight is usually time sensitive and warrants a premium price. The last load I hauled for them paid me $3.45/mile including fsc. The load went from Georgia to California. Another carrier went in to this account and took the business for $1.45/mile. How smart is that? I won't get into a pricing war with anyone. I would rather lose the business than lose money hauling freight. I won't go to California for $1.45/mile, especially today. I don't even haul freight that cheap in the South where fuel is usually cheaper.

Landstar does have agents who know how to sell. Those are the ones who have the decent paying freight. I don't waste my time with those who always have cheap rates. I just spoke to a friend of mine who has been leased to Landstar for several years. He seems to stay busy and is getting decent paying rates. He runs the West coast quite a bit.

[Ian Williams]

How about this one?

Company Logistics Agency BRF
Contact Number (800) 233-0026
Load Number 397423 Load Type T
Revenue $700.00 Rate/Miles $0.87
Rate Code CSA N
Pickup Date 05/09/07 00:00 Delivery Date
Origin GREELEY, CO Destination COPPELL, TX
Trailer Group VAN Trailer Type VAN
Length 0.000 Height 0.000
Width 0.000 Load Weight 0
Miles 803 Commodity
Pre-Loaded N A&E N
Date Posted 05/08/2007 Time Posted 13:31
JIT Team Load N

It's a full truckload, $.87 x .65= .55/mile. What do you think, should I take it? I wonder why it doesn't tell the weight... :?

If I'm reading this right its an Ammunition and Explosives load to boot. They want a team driven hazmat load for $.55 cpm?!?! What are they smoking?

Heck at my barn company drivers pulling triples earn more than that.