[Phoenix]

I am thinking about signing on with Landstar as an o/o. I'm willing to take the risk of buying a truck but the only thing that makes me hesitate is that I've farmed for 30 years and am nearly driven out of business by NAFTA, CAFTA, insurance regs, and fuel prices. I am currently driving as a company driver but I can never seem to get the kind of runs I want and everything seems so inefficient. If I could choose my own loads and run the way I'm capable of, I think I could make a living. I just don't know what questions I should ask other than the obvious like rate of pay and fuel surcharges, maintenance costs, etc. I understand that Landstar pays a % of the freight rather than cpm. That seems to me to be a good thing, but I don't know. The drivers I've talked to seem to like the company. Help and thoughts are appreciated.

[MADLUX]

send Gman a pm, he used to work for landstar at one time

[Paul McGraw]

Originally Posted by Phoenix

I am thinking about signing on with Landstar as an o/o. I'm willing to take the risk of buying a truck but the only thing that makes me hesitate is that I've farmed for 30 years and am nearly driven out of business by NAFTA, CAFTA, insurance regs, and fuel prices. I am currently driving as a company driver but I can never seem to get the kind of runs I want and everything seems so inefficient. If I could choose my own loads and run the way I'm capable of, I think I could make a living. I just don't know what questions I should ask other than the obvious like rate of pay and fuel surcharges, maintenance costs, etc. I understand that Landstar pays a % of the freight rather than cpm. That seems to me to be a good thing, but I don't know. The drivers I've talked to seem to like the company. Help and thoughts are appreciated.

A lot depends on type of trailer and area of the country. A carrier that is strong in the Midwest might be very weak in the Southeast for example. In some areas reefer is best, in other areas Van might offer more opportunites. You get the idea.

What area of the country are you in? Do you want to pull Dry Van or Flatbed? Landstar offers both. Any interest in Reefers, Tanks, Hoppers, End Dumps or other more specialized areas?

One advantage of Landstar is that the recruiter will print out for you all of the loads in their computer in your area of interest. The printout will show the pay, I think you have to take something like 68% of 92% of what is shown or something like that. The recruiter can explain it to you exactly.

It is very, very hard to make it as an O/O right now. It was much better in 2005. Still, you can make money if you stay busy at decent rates and manage your costs carefully.

[BanditsCousin]

I talked to a Landstar flatbedder and he loves it. He talked about the occasional rate that definitely pays the bills.

I'd ask the recruiter about fixed monthly expenses, advances, and #'s of what they guys/gals are plunking down annually on their 1099 (and how many miles they ran).

[GMAN]

Phoenix, Landstar is a somewhat unique company in trucking. You don't have an assigned dispatcher. It is probably the closest you can come to running your own authority without actually doing the paperwork. Landstar pays 67% of 98% of the line haul for power only. They pay 75% of 98% if you have your own trailer.

You can make money with Landstar or lose your shirt. It is up to you. I have met people on both ends. I did well when I leased to them. Not everyone does. If you are used to having a dispatcher and having someone else make your decisions on loads, then there will be an adjustment period. I would allow about 5-6 months to learn their system. If you are a self starter and like doing things on your own, then you could do well with Landstar. They have a good freight base. The way Landstar is set up you work through their agents. Landstar agents operate primarily like brokers. In fact, that is what they really are, except that they only work for Landstar. At least that is what is supposed to happen. There are some agents who also represent other carriers. There seemed to be a lot of fees when I leased to them. They can nickel and dime you to death on their fees. They are real sticklers for making sure logs are correct. They are pretty rigid in the way they want things done. Sometimes you can feel like a glorified company driver. If you learn their system and manage your business then you can do pretty well. I know BCO's (their term for owner operators) who have been with them for many years. A good friend of mine is thinking about leasing on with them again after running his own authority. He is tired of all the headaches of running his authority. He and I were leased on to Landstar at the same time. I think it was a positive experience for both of us.

I am not down on Landstar. In fact, I still do some business with them on their brokerage side. You don't have to worry about the money being there. They are a solid company with strong financials. They have a good orientation. If you take to heart the things they cover about running your business, you can make a good living.

What I am saying is that with Landstar your success is in your hands. There are some on this board who are currently leased to Landstar. There are also those who have had experience with them. I am sure you will find positive and negative opinions concerning Landstar. If I were thinking about leasing on to another carrier, I would give Landstar consideration.

[Phoenix]

Thanks to everyone for their comments. I've always been a self starter and run my own business, but let's face it. In today's world not even hard work is a guarantee of success. It used to be but not anymore. I like everything I've heard about Landstar. They seem to be a fairly honest company to deal with. I also like the idea of getting to choose my loads. My main problem is that I live in the NE (PA). At least I have a house there which is for sale. My family all lives in California. So long runs from coast to coast is what I would like to do. I know that isn't possible to do all of the time, but I think a company like Landstar probably has a large enough freight base to accomodate me occasionally.

[PhuzzyGnu]

Originally Posted by GMAN

There seemed to be a lot of fees when I leased to them. They can nickel and dime you to death on their fees. . . They are real sticklers for making sure logs are correct.

Care to elaborate on the fees and whatnot?

Also- logs correct as in matching up with dispatch, customer times, fuel tickets, etc. or loge correct as in "Those logs look legal enough."? Remember- Lies, damn lies, and logbooks.

-p.

[GMAN]

Phoenix, Landstar does have a good freight base. They have agents about anywhere you want to go. Rates can vary widely, depending on where you run. You will need to work your way through some agents to find those who pay the best. If you want to run California be prepared to run for low rates. You may do well going out, but if you want to run long across the country then rates coming out tend to be low, depending on the time of year and type of freight you pull. You need to allow yourself time to learn their system.

PhuzzyGnu, Landstar makes money on most everything they do. When I leased to them they charged every time you used their fuel card and every time it was loaded. The fees are not large, only about $1.75, but it adds up. Multiply that small charge by about 7,000 BCO's and it starts to resemble a lot of money. I am only guessing how many owner operators they have right now. They will advance the cost of your base plates, but and deduct a fixed amount each week out of your settlements. You can save money by getting your own base plates.

On their logs, you are expected to log about 3 miles less than the posted speed in each state. I was in their offices in Jacksonville once and they told me that they could take the route you supplied with your paperwork and tell how fast you should have been traveling. Apparently, they have the speed limits on those roads programmed into their computers so that they can tell if you were speeding or not. If you log the posted speed limit you will get letters from their safety department. I believe fuel stops need to match within 15 minutes. This is mostly from memory and has been several years ago, so things could have changed somewhat. These are things that you can live with, if needed. I only had a problem with one agent when I was leased to them. Part of it was a misunderstanding, but I would never haul a load for him again, either as a BCO or carrier, if it was a brokered load. I have also had a few go out of their way to accommodate me. Like most other things in life, it is pretty much what you make of it. Being successful with Landstar requires a lot of self discipline and initiative. There are other agent based carriers similar to Landstar, but they are a little different from most of their competitors. I would hesitate to recommend Landstar to someone who has never been an owner operator. Those who seem to have the most difficult time with them bought a truck and leased to them without knowing what they were getting into.

[GMAN]

Originally Posted by BanditsCousin

I talked to a Landstar flatbedder and he loves it. He talked about the occasional rate that definitely pays the bills.

I'd ask the recruiter about fixed monthly expenses, advances, and #'s of what they guys/gals are plunking down annually on their 1099 (and how many miles they ran).

I am not sure Landstar would supply those 1099's, BanditsCousin. When I was leased to them, they were a bit vague about the income of their BCO's. I think the main reason is that each person is responsible for their own success. Some people work smarter than others. There are still those who think that the more miles they run the better off they are. Those of us who have seen the light know that it isn't the miles that make you money, but the rate. They should be willing to give you some average numbers. When you look at "average" numbers you need to decide if you are above average or below. One other thing to check is whether they are quoting gross numbers or truck money. Some quick math can tell you what the truck makes. I have found that most Landstar BCO's quote gross revenue not truck money when they tell you what they make. Of course, that can be said of other owner operators who are leased to percentage carriers. I prefer discussing truck money. It doesn't make much difference what the carrier makes when you run percentage. It is what the truck makes that is important. CRST Malone, Mercer and others pay percentage. I know of some of the older carriers, such as Besl, who only quote truck money when they give an owner operator the rate. That is just another thing to keep in mind when talking to these recruiters and owner operators. You need to make sure that when they talk money it is truck money or that money that is paid to the owner operator rather than what the gross pays.