[GMAN]

A & E is ammunition and explosives. They usually require teams for those loads. I am sorry. I should have explained in more detail. There is no reason you should have known. Brian explained about RGN. Some people refer to RGN's as lowboys. They are mostly used for machinery such as bulldozers, excavators, etc., but could haul anything that is tall. Some have adjustable suspensions.

[Nomad_]

Carolina Trucker said,

"If I were to go out and get my own authority and do my own thing, which is an alternative, I don't see how that would be an advantage compared to leasing on to a company like Landstar, though that's just me I guess. "


Question for Gman,

The passage, "I don't see how that would be an advantage compared to leasing on to a company like Landstar..." stands out.

I own the benefit of reading several posts by GMAN concerning Landstar on this and other boards. I think one of the disadvantages is that Landstar has a lot of ways to trim your profits with a lot of service costs (like your telephone bills...lol). Gman went into great length in some of his previous posts explaining some of the Landstar billing (extra costs) details.

The way I see it Landstar is similar to a property manager (this may be a weak comparison) where they provide a lot of services that a Landlord/property owner would just rather not deal with (evictions, rent collection....etc..).

My question for GMan is, what are the companies (competitors to Landstar) that have a better package for new OO's? Or is getting your own authority the best alternative and the new OO needs to condition themselves to handling the paperwork/overhead?

The reason that I ask, is I may consider Landstar or competitor 3 or 4 years from now. Until then I will keep reading and learning.

Thanks in advance Gman. I always see you as the ultimate ambassador/mentor (both in knowledge and approach).

[mrpersons]

I've been leased over here at Landstar for about 3 years now and while I'm in no danger of filling up my checking account, but having a ball and that's got to worth something!

G-man gave a pretty good description of how things work over here. You have to be self motivated and seek your loads. Nothing happens until you make it happen. And it does take some time to figuire out the in's and out's to put your loads together/determine what areas to run in, also areas to stay out of!

Before I came to Landstar, I was operating for one of the major carriers (Heartland), but was sick of some clown in Iowa planning my day for me, sending me off on loads I had no real desire to pull.

I considered going independant, but one big advantage I see to being leased is that heaven forbids you get yourself in trouble, it's nice having a company with deep pockets (and an office full of lawyers) backing you up or at least taking the heat!

I highly recommend buying and owning your own truck outright before coming here. That way, the heats off and lets you relax and enjoy the ride, without all that pressure to make that last dollar to make the payment and a living at the same time. Many a day I've sat to wait for a better paying load. Don't be afraid to say no to an agent, having no payment really helps in that department.

[Jackrabbit379]

Originally Posted by Twilight Flyer

You've got at least 6 agents newly signed onto the messageboard. Shouldn't have any problems getting your questions answered, at least from their side of the coin.

Oh the names. They have "Landstar" in their names. Ahhh,ok.......Nevermind me. :? :shock: :P

[GMAN]

Originally Posted by Nomad_

Carolina Trucker said,

"If I were to go out and get my own authority and do my own thing, which is an alternative, I don't see how that would be an advantage compared to leasing on to a company like Landstar, though that's just me I guess. "


Question for Gman,

The passage, "I don't see how that would be an advantage compared to leasing on to a company like Landstar..." stands out.

I own the benefit of reading several posts by GMAN concerning Landstar on this and other boards. I think one of the disadvantages is that Landstar has a lot of ways to trim your profits with a lot of service costs (like your telephone bills...lol). Gman went into great length in some of his previous posts explaining some of the Landstar billing (extra costs) details.

The way I see it Landstar is similar to a property manager (this may be a weak comparison) where they provide a lot of services that a Landlord/property owner would just rather not deal with (evictions, rent collection....etc..).

My question for GMan is, what are the companies (competitors to Landstar) that have a better package for new OO's? Or is getting your own authority the best alternative and the new OO needs to condition themselves to handling the paperwork/overhead?

The reason that I ask, is I may consider Landstar or competitor 3 or 4 years from now. Until then I will keep reading and learning.

Thanks in advance Gman. I always see you as the ultimate ambassador/mentor (both in knowledge and approach).

Thank you very much, Nomad. I just try to answer as honestly as possible and pass along a few things I have picked up over the years.

Landstar does have a lot of fees. Even if you are a broker carrier, they will charge you an extra $1.75 per load unless you have at least $1MM in cargo insurance. You don't need that much cargo insurance for most loads. You either buy the extra coverage yourself, pay the $1.75 or not take the load. Now, if they do this a few thousand times per week, you are talking about some serious money. They also charge broker carriers a fee for using Trans Flo for your bills. It is another $1.75 per load, as I recall. Trans Flo scans your bills or paperwork into a central data bank of sorts. It enables the receipient to have access to your bills in about 15 minutes from the time you sent them. It is like a fax machine. I am confident that they make money each time you use those services, but it helps you to get paid much quicker and you know that the bills have been received by their accounting people. I believe they also offer that service to their BCO's, as well. Some carriers charge by the page for Trans Flo. It is owned by Trip Pak.

Landstar is a unique animal in the freight business. There are few carriers who don't have a dispatcher system. CRST Malone, Jones, Mercer are a few who are agent based. There are some other good companies which I don't discuss much on this forum because their requirements may be more stringent. Besl is a good old company. A friend of mine leases to them. He used to have a fleet of trucks but got tired of the hassle and sold all but two that he takes turns driving. Kaplan is another good company. I know owner operators who lease to them, as well. Most of the carriers I have mentioned are flat bed companies. Some of them also have vans. Landstar only pays on 98% of the line haul. I believe Mercer pays on 99%. CRST and Jones pay on 100%, I believe. I know CRST Malone does. It depends on the type of freight you want to haul as to their competitors. You see, there are specialty areas and specialized carriers who do very well within their niche. There is a carrier who primarily hauls jet engines. They are mostly shipped on step decks. The pay is very good and it is not uncommon to see one of their owner operators who have one of the big custom sleepers. Weight doesn't matter because that is about all they haul and jet engines are usually not that heavy.

The advantage you have leasing to a carrier, such as Landstar, is that they have deep pockets and a strong freight base. There are some loads which will not be brokered out of the Landstar system. You must be leased to them to qualify for the load. If you run your authority, you have the option to haul freight offered by other brokers, which may pay more to the truck. It could also pay less. Most of the time you will make more brokering a load through Landstar than leasing on to them. I have gotten to know some of their agents over the years. I also know agents for other brokers.

Getting your authority isn't difficult. All it takes is money. Not so much for the authority itself, but insurance and working capital. There is additional paperwork when you have your authority. You must be careful to be compliant with all DOT regulations. It sounds complicated, and can be, but it mainly takes a lot of attention to detail. If you aren't good with managing yourself and time, then you may be better off leasing to a carrier who will take care of all the paperwork and details for you.

There is no need for you to get in a rush. You have plenty of time. Most carriers pay about the same percentage. Most will be right around 75% of the freight rate. That can be misleading. It is better to make 65% of a great rate than 80% of a cheap rate.

[Dejanh]

Thing i dont understand in regards to Landstar and the discussions i've seen here and elsewhere about them is people talking about these little fees involved in running their system. If they take 1.75 for extra insurance then just pay the darn thing if you think the load is good and if if you're happy and doing well thats not a reason for one to dislike them!
As I understand, most of these fees can be avoided and they are provided to you as a courtesy to run smoother,faster and be more productive and if you are, then i would concider anyone who complains to be.....(well, i am not gonna say it :wink: )....

If they make money by doing this then hats of to them, they found another way to make some extra change in the process and i personaly would not have a problem with it !

[GMAN]

If you lease to Landstar there are ways in which you can avoid some fees. You can get your own base plates, not take advances and find your own insurance. You are not required to have them do any of those things for you. Most carriers don't nickel and dime their owner operators like Landstar does with all their little fees. You can still make decent money with them. They do state in their contracts what they charge and how much. It is up to you whether you are willing to pay the fees or walk. Most carriers have some fees attached to the services they provide. I saved about $500 when I got my own base plates and permits under my own authority as opposed to having CRST Malone get them for me when I leased to them. It would likely be about the same with Landstar. I don't recall exactly what I paid them, but both carriers plate in Illinois. Most carriers make money off of fees from their owner operators, whether they are obvious or not. Even if you pay more with their fees, they will front the money for your base plates and permits and take weekly payments out of your settlement checks. They are basically acting like your bank. If you don't have the funds to pay for them yourself, then you will need to find a carrier who either pays for them at no charge or finances them for you. If they are the ones who pay then they are within their right to add additional fees to cover their costs and expenses. If you don't want to pay the charges, you can always get your own authority. There is considerable risk when a carrier puts their signs on a truck that they don't own. When you are the one with the authority, it is your neck if the owner operator or driver is involved in an accident or damages his cargo. A carrier has to pay out a lot of money to stay legal and follow the regulations of the day. For instance, a motor carrier MUST participate in a drug consortium. That runs around $100-150 per driver, whether they are an owner operator or company driver. It isn't an option. Participation in a drug consortium means that you are involved in a random drug screen program. There are a lot of other costs involved. I just got my insurance quote to renew my policy in a couple of weeks. It comes to $3,955 per year, per truck. If I leased on owner operators, it would cost $3,955 for each one that I leased on to my company. I am sure some of these carriers pay that much or more. I got a quote from the folks who do many of the members of ATA (American Trucking Association) and I am getting better rates than they offered. However, the larger carriers will likely have more claims. Rates are based upon risk. Insurance must be provided for each owner operator. That is money which must be paid up front to the insurance company. Even if it is financed, you still need to come up with about 20-30% of the annual premium. The truck must be insured before it picks up the first load. That is a lot of money.

[Nomad_]

Thanks Gman, I will log this post away (like many others). Fortunately, I have plenty of time. While lurking on your other posts, I never saw alternative carriers mentioned (just gaining your own authority), so I thought I would ask.

Whether I am trucking or doing something else in 4 years, if our paths cross, it would be an honor to buy you a steak dinner.

[rank]

Most of the time you will make more brokering a load through Landstar than leasing on to them. I have gotten to know some of their agents over the years. I also know agents for other brokers.

Did I read this right, Gman? I believe you and I were having a chat elsewhere about a load...we got $2400 and the LS o/o got $2900 (98% of 75% of $4,000). I figured this was typical....you're saying no?

If you run your authority, you have the option to haul freight offered by other brokers...

So, if I lease to LS, I can continue to operate as a private carrier and as an independant?

Seems like the best of both worlds no? Why NOT lease then?

[Dejanh]

I know they give you the option to run for them thru your own authority which is the option i'll be concidering as well..