Carrier Profiles
Doing Things A Little Differently: A Fleet Profile of Landstar Express America
Landstar Express America, Inc. (LEA) is a little different than the typical expedited freight carrier.
Sure, they carry the same general commodity freight like other carriers, and it is often picked up and delivered to similar locations as the other carriers.
They even use the typical cargo vans, straight trucks and tractor-trailer unit sizes in their fleet.
What makes LEA a little different is their method of dispatching, and by extension, the relationship of the company and their independent contractors.
This Jacksonville, FL-based company, which began life as Express America in 1987 and was acquired by Landstar in March of 1995, uses a dispatching system that is unique in the just-in-time freight industry.
With many typical expedited carriers, the independent contractors and drivers are deadheaded to certain areas across North America that historically (hopefully) have proven to generate freight. There, the truck will sit until a load is dispatched, or the contractor is relocated to (again, hopefully) a busier region.
A unique approach
LEA does it differently. Rather than utilizing a centralized company location with a large dispatching department, the company instead has a nationwide series of over forty regional LEA agents. Each of these agents is accessible (through toll-free numbers) by LEA's independent contractor fleet, also known in the company's parlance as Business Capacity Owner (BCO's.)
Additionally, Darin Mark, Director of Recruiting at Landstar Express America, says that LEA's100% Owner/Operator and Small Business Fleet Owners can find loads through their network of 800-plus Landstar Inway, Ligon, Ranger and Logistics Agents.
Because of the truly independent nature of the contractor/company relationship at Landstar Express America, self-reliance and self-motivation are key elements in the success of a BCO with this company. The LEA system does require more "pro-activity" than that of conventional dispatch methods, but by the same token, this can mean the difference between a full truck and an empty one.
LEA's system offers their BCO's true independence of movement, layover choices and load selection with no dispatch refusal or out-of-service penalties imposed on the contractors.
Company Requirements
Landstar Express America, Inc. is a publicly owned company operating in 48 states and Canada. Their current fleet size is 350 units of all size trucks, with sleepers required for straight trucks and tractors. LEA says that their company offers opportunities for single and team operations
The company requires that its independent contractors possess Commercial Driver Licenses with Hazardous Materials Endorsement. Company-provided insurance includes Third Party and Physical Damage coverage. Communication between the company and trucks is accomplished with cell phones, pagers and the Highway Master Satellite System.
Darin Mark says the keys to success for a Landstar BCO include: "Being a true business person and making quality, safe business decisions on how they want their operation to be run. Building good working relationships with constituents associated with Landstar Express America."
"Presenting a good and willing attitude. Again, being able and allowed to run their truck as their business and being able to run it as they see fit."
Mark says that when questioned about potential revenue with LEA the answer is simple: "When a prospective BCO has questions about income projections with LEA, I simply tell them that It's up to them and how hard they are willing to work."
"We are constantly looking to add quality Express Centers throughout the whole US."
Tom Larson, Vice President of Business Development of Landstar Express America offers a business level projection: "We foresee continued growth with further incorporation into supply chain systems and processes across various industries. Considering the changes in security issues with respect to air transportation, we expect expedited trucking to expand even further."
Overstaffing is a common concern among many expediting owner/operators; after all, if there are a thousand trucks in the company X fleet and two hundred runs in a day, that means many company X drivers will be sitting for a while.
Darin Mark says that's not a problem at Landstar Express America: "Overstaffing, that is, adding more trucks to the fleet without having the business to justify it, has never been an issue at LEA because we constantly monitor the truck to load count ratio. We do, however, have to project future business levels and not recruit for just today, but look where we will be down the road."
Vehicle service life is also an issue for many in this industry. The longer one can operate a vehicle that's paid for, the longer one can enjoy a higher degree of profitability.
LEA has a generous service life policy for their independent contractor's trucks; as long as the vehicle is in good, safe operating order and is still in good shape appearance-wise, the company will keep the unit in service.
The Package
A visit to LEA's web pages reveal an extensive program of safety meetings in locations across the country, open to all BCO's, regardless of their Landstar operating company.
An example of a well-placed BCO meeting was the one held recently in Indianapolis during Brickyard weekend. Transportation to the track and lunch was provided for anyone interested in seeing the IROC race or Winston Cup practice session. A drawing was held for the BCO's as well, with the winners receiving tickets to the Brickyard 400 on Sunday.
Darin Mark lists some of the benefits for the owner/operator leased to Landstar Express America: "We pay 62% line haul and accessorial charges, we offer weekly settlements with direct deposit and we also have LEA Comdata cards."
"We also offer a Safety Awards Program and Driver's Recognition Programs; we even have an Internet load board for our BCO's to use."
"LEA has available an authorized passenger program with pre-approval, paid permits and cargo insurance and we can cover fuel tax reporting."
Mark says that another very powerful incentive LEA offers is LCAPP® - Landstar's Contractor's Advantage Purchasing Program. Using group purchasing power, LCAPP® can save the owner/operator money on trucks, trailers, long distance phone service, fuel, tires and other item.
Tom Larson gives high marks to LEA's fleet of independent business people, the BCO's: "One of the unique aspects of our company is that it is an owner/operator-only company. They are the force that allows us to exist; we serve the needs of our owner/operators and provide safe transportation for our customers."
At this time, LEA is actively recruiting straight trucks and tractor-trailers, preferably with teams, in all of their operating areas.
Darin Mark
Director of Recruiting
800 449-9742
Web Information
Landstar Homepage
Landstar Online Application