[GMAN]

Originally Posted by 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.

It would be good to sit down with you sometime, Nomad.

Originally Posted by rank

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?

I recall the conversation, rank. I was told by Landstar that they pay broker carriers 80% and BCO's with their own trailer 73% (or 75% depending on how you figure it). You don't know for sure unless you see the actual bills. I have also heard that they pay the BCO's more. It would make sense that they would pay broker carriers more, since they pay their own insurance. I it may depend on the agent.

Originally Posted by 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..

Landstar will not allow you to run under your authority while you are leased to them. You can broker loads through them if you have your own authority. Most carriers will not allow you to use your authority and be leased to them at the same time.

[Orangetxguy]

I had the opportunity, in 2004, of spending a weekend layed over in LA, with a couple pretty decent LS BCO's. They sat in the restaruant with me for about 4 hours on the saturday afternoon of that weekend, and showed me how the LandStar system works. Seeing the rates posted for loads available to O/O's working for LandStar, and knowing the rate of the LandStar broker load I was picking up on the following monday AM, I was shocked. That same load that I was going to pull from the LS brokerage, was available to an LS operator for an additional $650.00. I would have loved to have the extra $$ for the checkbook...but we got a rate that was comfortable enough. We did not lose money on the turn. I found that most times, whether it was an LTL or full load, LS always gave us a fair rate on brokered loads, and always had our money to us in 12 days on a faxed BOL and Invoice.

The packet I have sitting here, tells me that if I lease into them, my tractor will receive 67 1/2% of 98% of the load revenue, plus 100% of fuels surcharge, and 100% of extra item charges, if I pull a LandStar Van.
If I choose to rent one of their flatbed or stepdeck trailers, then the to the truck rate goes to 75% of 98%.

The packet also lays out what surcharges I can expect to pay, as well as what services I would be encouraged to participate in....The biggest being the Maintenance account.

Right now I am still considering 3 tanker companies along with LandStar.


:moose:

[Dejanh]

Originally Posted by GMAN

Landstar will not allow you to run under your authority while you are leased to them. You can broker loads through them if you have your own authority. Most carriers will not allow you to use your authority and be leased to them at the same time.

I called Landstar 4 months ago to get some more detailed information about doing buisiness with them and as i explained to them that i will have my own authority and all, nice lady on the other side of the line told me that they do buisiness with independents and that i would have to get approved by their brokerage department to haul their freight.
Landstar will take you on as a 100% independent but i dont know how much they take out of all of that, did not finish my conversation as my line broke and i didnt wanna call back and have to explain everything all over again to some1 else.. :roll:

I guess thats the same thing that C.H. does as if you are willing to book their loads you have to get approved first and then the rate is nagotiable..
I have a friend who pulls only for C.H. Robinson and nobody else and i suppose LS will let you do the same if you got what it takes !

[rank]

Originally Posted by Dejanh

Landstar will take you on as a 100% independent...

That's called being LS approved....but you're not leased and you don't get the same rate.

Originally Posted by Dejanh

but i dont know how much they take out of all of that.....

I do. If you were leased to LS, you got $2900 from Dayton to Oshawa two weeks ago. If you were an "LS Approved" independant you got $2350. We had to buy our permits...don't know who buys the permits for the leased guys.

[Dejanh]

[quote="rank"]

Originally Posted by Dejanh

That's called being LS approved....but you're not leased and you don't get the same rate.


I do. If you were leased to LS, you got $2900 from Dayton to Oshawa two weeks ago. If you were an "LS Approved" independant you got $2350. We had to buy our permits...don't know who buys the permits for the leased guys.

Thank you for the reply, i havent checked more closely at this and it really clears the picture...

[no_worries]

Dejan, how's your buddy do that pulls only CHR loads? I'm sure he has the option to pull loads from somebody else. I was just looking over CHR's program and in order to be the type of carrier that would be dedicated to them you have to supply more than most small O/O's can. But I would be curious to hear how he does pulling exclusively for them.

[Dejanh]

Originally Posted by no_worries

Dejan, how's your buddy do that pulls only CHR loads? I'm sure he has the option to pull loads from somebody else. I was just looking over CHR's program and in order to be the type of carrier that would be dedicated to them you have to supply more than most small O/O's can. But I would be curious to hear how he does pulling exclusively for them.

I heavent asked him how he does what he does but, he does it :wink: with just his truck and a single trailer..
He runs ONLY for them and no1 else, he has his own authority which got him contracted to C.H. and i know he's not complaining....some of the rates he's been getting are really attractive, i know he recently did a load from Charlotte here to SLC for 3600 flat and they had him comming out for 1.30 to Cali...
I think they give you better prices if you only haul for them, dunno but will have to research it some more..

I will ask him though...

[GMAN]

Rank, when you look at the rates posted on the Landstar BCO board, they are gross rates, not what the truck makes. If the number you noted was what was listed, then that is not what the BCO or owner operator makes. You will need to do some mulitplication to find what the load actually paid the owner operator or BCO.

Whether it is Landstar, C. H. Robinson or any other broker, you can haul as much or little for them as you choose. If you haul a lot for a particular agent you may get offered better paying loads, once you prove yourself. Keep in mind that most agents or brokers may not give you their best paying loads until you prove yourself. I have met a couple of independents who primarily haul C. H. Robinson. They seem to be doing well.

You will need to pay for your base plates and permits if you lease to Landstar. The main difference is that you can pay for your base plates and permits weekly out of your settlements. They will advance the money to buy base plates and permits, but you will pay about $75/week until the money is paid back. A lot of owner operators find it difficult to come up with $2,000 or more at one time for base plates and permits. Landstar plates in Illinois, as do a number of other carriers. I would count on $2,000-2,200. I can buy my own in my home state for about $500 less. You pay a premium for them getting the plates for you.

[rank]

Originally Posted by GMAN

Rank, when you look at the rates posted on the Landstar BCO board, they are gross rates, not what the truck makes. If the number you noted was what was listed, then that is not what the BCO or owner operator makes. You will need to do some mulitplication to find what the load actually paid the owner operator or BCO.

Yeah, the loads were posted at $4000 IIRC. $4000 x 75% x 98% = $2900 and $2900 is what the LS driver on the jobsite said he was getting so the numbers jive.

True, I didn't have to take the loads at $2350, but that was $5/mile ($2.50 for all miles after I deadheaded back). Not saying I was treated unfairly because I wasn't....just saying the leased guys seem to get offered more. $550 more.

[GMAN]

That is a lot of difference in money, Rank. I have spoken to some who have told me that they got much more than the owner operators with Landstar. It may have as much to do with the agent as anything else.