Landstar Income

[GMAN]

Pepe, I have gotten quite a few loads from Landstar that pays $2/mile or so. You need to understand that Landstar agents are brokers who primarily work with Landstar. They need to move the freight whether it is through Landstar BCO's or by brokering the load to a carrier. According to some of the agents and corporate people with which I have spoken, Landstar pays a higher percentage to carriers than their BCO's. Whether you lease to Landstar or broker freight through them, you need to find those agents who have the better paying freight. It takes time and effort to find better paying loads. If you are willing to haul cheap freight you can find it with Landstar or any other broker. If you want to spend the time and effort to find better paying loads, then that is also available. It is up to you.

[satch]

sorry to drag this thread back up from the dead.

if a driver with his own authority books a load from landstar, does that driver just get quoted a price of what the load will be paid to him. take it or leave it. or does he have the option to see the original bills showing what the shipper is paying L.S. ?
is becoming an approved carrier for landstar more easy in terms of backround and work history check if you have your authority then compared to leasing on under their authority?

[merrick4]

sorry to drag this thread back up from the dead.

if a driver with his own authority books a load from landstar, does that driver just get quoted a price of what the load will be paid to him. take it or leave it. or does he have the option to see the original bills showing what the shipper is paying L.S. ?
is becoming an approved carrier for landstar more easy in terms of backround and work history check if you have your authority then compared to leasing on under their authority?

Well as I mentioned earlier they called me today as I'm posted on the boards. Glad you brought this thread back up as I read Pepe's comment above how they offer stuff the Landstar drivers don't want. He wanted to send me to Texas for $1.40. I looked at trucks posted and saw a few trucks posted in the area.

As for signing up with them I never got that far as I declined the load.

Edit to clarify I meant I saw some Landstar Ranger trucks in the area.

[GMAN]

sorry to drag this thread back up from the dead.

if a driver with his own authority books a load from landstar, does that driver just get quoted a price of what the load will be paid to him. take it or leave it. or does he have the option to see the original bills showing what the shipper is paying L.S. ?
is becoming an approved carrier for landstar more easy in terms of backround and work history check if you have your authority then compared to leasing on under their authority?

Landstar requires their BCO's (owner operators) to have a minimum of 1 year driving experience and have an acceptable MVR and background check. When you have your own authority, they only care that you have motor carrier authority and acceptable levels of insurance from a top insurer. They will not accept OOIDA's insurance. They don't check your personal driving record when you become an approved carrier. I am not sure whether they have minimum length of time as a carrier or not. They will usually check your safety rating. When you first start out you will not have a rating. I don't think that will prevent you from getting approved by them, but a bad rating will.

It can take several weeks to get approved as a BCO with them. It usually only takes a short time to get approved as a carrier. As long as your authority and insurance are in order they should get you approved fairly quickly.

Whether you lease your truck to them or broker loads from them, you need to pick and choose your loads. Some pay well, others I would be ashamed to quote the rate. They are no different than any other broker in that they have rates on both ends of the spectrum.

[merrick4]

Actually this just came out today:

Landstar upgraded as it snags larger retail accounts

By Christopher Hinton
Last update: 9:36 a.m. EST Jan. 7, 2008

NEW YORK (Marke****ch) -- Landstar System Inc. was upgraded Monday to outperfrom from peer perform at Bear Stearns, citing a return to growth after two years of flat revenues and earnings. "We believe that Landstar is gaining traction recently by growing agents and getting into larger retail accounts," the investment firm said in a note. The airfreight and surface transportation company appears to be taking market share from the largest asset-based truckload providers such as Werner Enterprises and J.B. Hunt , which have been reducing fleet sizes. Landstar revenue could now grow at a mid-single percentage digit to double-digit in calendar '08, Bear Stearns said. Landstar was up 4.6% to $40.26

Oh to be one tiny tiny cog in the wheels of transportation and here I sit in a truck. Well not that I have the intention (or the possibility) of attempting to grow into a Swift or JB Hunt but it's hard to imagine that the original owners (well current again of Swift) started off sitting in a truck too. A less comfortable one too.



So I guess it is true that the J.B Hunts of the world are reducing fleet sizes.

[GMAN]

Many of the larger carriers are changing their focus from company drivers to owner operators and brokerage. They shift much of the liability of ownership to others while maintaining their level of profitability.

[satch]

since they have rates on both ends of the spectrum i would guess the driver would never see or have a legal right to see the contract between the shiper and the L.S. agent.
do they make drivers sign a form where as they can"t pick up any of L.S custumers on their own for a certain amount of time after leaving L.S.

[GMAN]

I don't think you are entitled to see the original shipping agreement between the shipper and carrier. On the other hand, if you lease to them you can legally ask them for a copy of the rate confirmation from the shipper for a particular load. You are legally entitled to see those documents by law. I believe it is under the Federal regs around 376.11 if you care to look it up.

I don't recall there being anything in the lease agreement with Landstar about back soliciting when you are a BCO or owner operator leased to them. With their customer base, I don't think that is something for which they would need to worry, anyway. As a broker carrier, there is a provision in the contract which addresses back soliciting. It is pretty much the same with any broker. Most will not allow you to solicit any shipper that you have haul for through the broker. It seems the majority of brokers with whom I have done business have a 1 year provision in their contract. If you solicite and get any business from that shipper then the broker is entitled to a percentage of any money for that period of time.

From what I've seen with big companies like steel mills and such is that they don't deal with individual carriers. They usually have a contract setup with a large carrier and they are very much tied in with their computer and it's all very automated.

What I have seen twice was a private carrier showed up then asked if there was any extra loads. I spoke to both these guys and one did get a load and the other was told to wait the afternoon if he wanted and if a truck didn't show up by a certain time he would get a load.

[GMAN]

Some steel mills have logistics companies to handle their loads. There are a couple who come to mine that handle several steel plants. Steel plants prefer dealing with them because they don't have to worry about getting trucks. These companies can find 100 trucks a day, if that is what is needed. It is much easier for the steel plant than dealing with 100 different carriers.