Quote:
Originally Posted by specialkay
The only issue I would have is if the FSC only avg 10% If that's the exception rather than the norm its OK Not great but the economy isn't great either. Keep on truckin LOL
One good thing I can say about my former employer - MacKinnon Transport out of Ontario - is that the fuel surcharge that they paid to flatbedders on a percentage pay was much higher than the 'cents per mile' FSC they paid to owner-operators on cents per mile pay. I often saw a $300 FSC paid to me where a van guy (paid cents per mile) would get $50 bucks. This would happen often with shorter runs. Unfortunately, at Landstar agents ('freight brokers') are motivated to cut the FSC part of the freight price to the bone: the smaller share the FSC takes of the line haul amount, the more money they will make.
Example:
Load 1 pays $3,000 and $300 of this money is FSC. I would get the entire $300 plus 72% of the $2,700. The agent gets 7% of $2,700 or $189. Compare this to:
Load 2 pays $3,000 and $500 of this money is FSC. Now I as driver (BC) get $500 plus 72% of $2,500 and the agent gets 7% of $2,500 or $175.
It's not a big difference but it affects both Landstar and its agents, and when you do 1000s of loads a year and you have 1,000 agents and 10000 drivers, it is a lot.
Which is why I'm still thinking of my own authority down the road