Landstar Agents

#3
I am slightly confused, Do landstar agents give their loads to Landstar drivers or do they broker them out to other trucking companies?
They try to move it on Landstar equipment via their network of Independent contractors and if there are no takers it ends up being brokered to an outside "aproved" carrier or broker like G Roch or Traffic Tech. Fact is, if you're hauling Landstar freight, you're being paid a fraction of what the shipper/receiver paid for it to be moved. Recently I have noticed a Landstar agent on loadlink running under the name LANDSTAR CANADA based in Jacksonville, FL. They appear to take all the canadian freight agents have and re-broker it.

Where does all the $$$ go ?? Wall Street of course!

NASDAQ:LSTR
 
#4
I am slightly confused, Do landstar agents give their loads to Landstar drivers or do they broker them out to other trucking companies?
They try to move it on Landstar equipment via their network of Independent contractors and if there are no takers it ends up being brokered to an outside "aproved" carrier or broker like G Roach or Traffic Tech. Fact is, if you're hauling Landstar freight, you're being paid a fraction of what the shipper/receiver paid to that shipment moved. Recently I have noticed a Landstar agent on loadlink running under the name LANDSTAR CANADA based in Jacksonville, FL. They appear to take all the canadian freight agents have and re-broker it.

Where does all the $$$ go ?? Wall Street of course!

NASDAQ:LSTR
 
#5
We use Landstar in TX to do some US to US and US to CAD loads but were told they only use Landstar agents. we will have to be a bit more careful when we put them under our freight. thanks!
 

Rob

Site Supporter
#6
Landstar

I haul Landstar direct for Landstar agents they are just like any other broker you just have to be set up and approved by them (landstar head office). The only difference between Lanstar and joe blow broker is you know Landstar is going to pay you as it all goes through head office in Jacksonville for payment.
 
#8
selling for Landstar

Hey there, so I'm being offered a job doing sales with a dude I used to work with at another company who has now become an agent for Landstar out in eastern Ontario. I'm reading what you guys are saying here as I'm waiting for the phone call from him to discuss how this would work and now I'm thinking, geez, HOW is this going to work?

Has anyone else been a sales rep for Landstar? This is the first time going into sales as I was laid off last week so I just want to make sure I don't screw myself or end up wasting my time making money for someone who isn't going to be fair.

I have committed to it yet as we have yet to agree to a salary and compensation structure and figure out how the heck customers get set up with an agent if all the accounting is in Florida.

Any input would be appreciated. Thanks!
 

theman

Well-Known Member
#9
The way it goes is that Landstar affiliates have the first dibs to all the freight -- meaning a Landstar truck has first right to their freight and Landstar agents can see all Landstar freight and have the first right to broker it.

As far as how it gets to G Roch, Rockman and the other crap out there, well these guys represent themselves as carriers and get away from it -- simply because Landstar is too big to really check them out to see that they are rebrokering freight. It's the same problem with Exel offices in the US, some Hub offices, and some other big guys.

Landstar pays its agents 50% of the profit but expects for your 50%, you sell, dispatch, trace etc ... just using their network and their administration and money.

Hence, most Landstar agencies are quite small ... people go with Landstar to set up and once they are well enough capitalized, they tend to split.
 
#10
I also heard that if it goes on a "Landstar" truck that the % is set from landstar. For example if the agent is getting $1000 for the load maybe the Landstar truck gets $800 but if they can sell it to joe blow they could give them $500. So to the agent half of $500 is better than half of $200. Well it used to be anyway.
 
#11
Landstar

LandstarBroker.com Load Board - is a load board very similar to load link - anybody with internet access can surf for freight but without having to pay monthly dues - but you have to get set up with them ie insurance, authority before they have you move any freight or you can post your available trucks on the site . I think the Landstar agents make better margins when they sell freight on their load board to outside carriers as opposed to moving the freight with Landstar equipment - that my opinion anyway
 
#12
LandstarBroker.com Load Board - is a load board very similar to load link - anybody with internet access can surf for freight but without having to pay monthly dues - but you have to get set up with them ie insurance, authority before they have you move any freight or you can post your available trucks on the site . I think the Landstar agents make better margins when they sell freight on their load board to outside carriers as opposed to moving the freight with Landstar equipment - that my opinion anyway
They do make more when brokered to an outside carrier. Example: Landstar agent has a load posted with a rate of $2,000.00 now their own drivers also have access to the same load board showing the $2,000.00 rate but they decline the load, the agent now brokers out the load, but, here's the catch, that agent cannot sell the load without holding back 20% of the 2G, so he can only sell it for $1,600.00 That is standard for every Landstar agent. So originally you can count on that load paying $2,400.00 when Landstar first got the load from the customer. 20% off the top when it goes on their truck, then another 20% when it goes to another carrier. A few friends of mine were agents and drivers so the info is pretty accurate, they even showed me the agents load boards, not to much different than the public board they have available.
 
#13
Because people on this site are very helpful, I wanted to share some information in return. Went to an interview last night with a Landstar agent and while he doesn't have enough business right now to generate the income I was making (honestly, can't work for free or cheapen 18 years experience), he said I could get set up and do it part-time from home, which isn't really going to cut it right now.

For the record, this is how it works (looking at his sheet):

If load is hauled by a Landstar truck:
5% of 98% of gross revenue for agents who do up to $1 million
5.5% of 98% of g.r. for $1 million to $2 million
6% of 98% of g.r. for $2,000,001 to $3 million
capped at 7% of 98% of g.r. for agent business over $3 million

Landstar gets fuel (about 27 cents/mile right now) and accessorials

example: Load pays $1000 so commission would be 5% of $980 = $150

If load is brokered out then you earn 70% of NET profit to agency and agency receives 50% of net on load.

example: Customer pays agent $2500
Load brokered out for $2000
Net profit on load = $250
Agency takes 50% of $500 = $250
Sales rep takes 70% of $250 = $175

If the rate is "all in", agency backs out fuel at 17% or 27 cents/mile to get rate before fuel.
 
#15
Does anyone have information on Landstar and Phoenix - what that relationship is all about and how these agents are representing other brokers?
Hi, I have no idea about Phoenix, but Landstar, like most US companies with agent opportunities all follow the same playbook, which generally is 8% of LH revenue goes to the agent if the load ships on a company truck. Two wrinkles come about with this system though. As others have stated, if a load pays $1000 and you can sell it for $800.00 and you have a 50/50 arrangement with head office (some do 70/30 in your favour too, or they used to), a lot of agents will sell the load and pocket the extra $20 rather than load a company truck. The other wrinkle, and the one that bugs me the most is there is nothing stopping you from becoming an agent for every outfit that will take you on. I've known outfits that were agents for, in no particular order, Landstar, Dallas Mavis, Pacer, Sammons, and Packard Logistics all at the same time. So as an agent, you post an available load on your internal board (in this case we'll say Dallas Mavis as I was there long before the bankruptcy/ Greatwide deal). The agent mentioned above books your load claiming he has a DM truck, turns around and sells it off of Landstars board and pockets $$$$ from both ends.

Then makes an end run around you by soliciting your customer as Landstar/Universal etc. It's a classic example of a system that in theory should work great but greed sends it straight to the ditch.
 

martinetav

Well-Known Member
#16
Does anyone have information on Landstar and Phoenix - what that relationship is all about and how these agents are representing other brokers?
We took a load from them a couple of weeks ago from Toronto to Quebec City. It is being paid in Canadian dollars ( so they are playing with the exchange rate also) It's the first time that we are to be paid in Canadian dollars with Landstar. We were given an email address for billing, which is also not the usual. I'll keep you posted on how it goes for payment.
 
#18
I have worked with Phoenix Logistics for several years. They are an agent for Landstar and Yevgeny has integrity. I would recommend all day long.
He is diligent, honest and understands how to keep his clients happy. Some 3 pl's have a "agency based", business model. So its down to relationships, and who you trust. For sure, if you have been "ripped off" by anyone, or an agent, then take to corporate and say something. I was in this business model in my past life with Mark VII, Exel etc. ( 6 acquisitions). Our clients looked at our office and operations staff as a "single source" for their business. No different than a single carrier. So , bad stuff happens if you don't do your homework. cheers
 
#19
ps. Landstar has over 30 Canadian agents. They are not "playing with the exchange rate". If the o/d pair is in Canada, you will be billed in Canadian. They do have both options. Who doesn't?
 

martinetav

Well-Known Member
#20
We took a load from them a couple of weeks ago from Toronto to Quebec City. It is being paid in Canadian dollars ( so they are playing with the exchange rate also) It's the first time that we are to be paid in Canadian dollars with Landstar. We were given an email address for billing, which is also not the usual. I'll keep you posted on how it goes for payment.
We did have a great experience with Yevgeny. And the invoice sent on Sept 28th has been paid. Now we will wait for the check that pays waiting time. Not sure why but they have us send two invoices. One for the transport and another for the waiting time.
 

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