Carrier Outsourcing

[Twistoff]

Everyone on here knows that Carriers are sometimes forced to outsource loads in order to service their customers properly. What happens though when you are 40 miles from a load & the carrier you are leased to outsources it in order to make more money?

I was speaking to the Detroit agent for Landstar Express America a few months ago & he told me that his preference was to use outsource carriers because he seems to make more money on a per shipment basis. This didnt faze me until recently when I was informed by another agent exactly how much freight is outsourced in the Landstar Express system. In the calender year of 2002, Landstar Express America outsourced over 30% of the available shipments. Is that normal? 30%?? That seemed extremely high especially since LEA has been loosing trucks because there is no freight available for them. Just to get confirmation on this, I happened to get a call on Monday from another Landstar Express Agent that keeps in touch & I asked him. He told me that since January of 2003 to present, LEA is sitting right around the 31% mark for outsourcing loads. WOW!!!! 31% in January & February when almost the entire fleet is sitting idle. I'd love to hear from anybody that can add to this or offer any insight on where to draw the line between outsouring the load or supporting your fleet.

 

[paperback1]

That's sad. I'd say maybe 10-15% tops. When they put that much into getting other folks to take a load, makes me wonder..hmmmmmmm

 

[Twistoff]

Well, you will be shocked with the info that I was given today!!!!! LEA has outsourced over 60% of their loads out of Ontario & over 50% of their loads into Ontario. What ever happened to loyalty??

 

[KandS2]

How much of the Canadian outsourcing is due to drivers refusing to go to Canada? I realize in-bound freight wouldn't be, but what about the outbound?

Stay safe out there!

 

[BULLRUSH]

i'm with landstar express america we have over 70 agents last time i counted and i have only had problems with DETROIT AGENTS OVER THE PAST 5 YEARS. THEY OUTSOURCE TO EAGLE FREIGHT COMPANY I HEARD JACK IS RELATED TO SOMEONE AT EAGLE FREIGHT.IT HAS BEEN GETTING BETTER I HAVE HAD 5 LOADS FROM THEM THIS YEAR OVER THE LAST 5 YEARS I DONT THINK I RAN 5 LOADS FOR THEM. BUT IF LEA IS OUTSOURCING 30% THATS WAY TO HIGH AND THE COMPANY KNOWS IT .IT COMES DOWN TO THE MIGHTY DOLLAR.WHY WOULD LANDSTAR PUNISH AN AGENT THAT STILL BRINGS HOME THE BACON?x(

 

[evilspirit]

Outsourcing has defiently hurt me recently, many times I've sit in areas where freight is moving with other people taking our freight. In some cases the agent can't get the price up to where we'll take it without giving up some of his/her commission, some is just cheap freight we won't haul. However we do have agents who have other interest. Omaha has warehouses in Columbus, Indy, Detroit, and I'm sure in other places. These belong to point to point trucking, I know from experience many LEA loads go on big trucks as LTLs, I've watched them being loaded and checked out the Waybills. Their tendency is to load Express America only when nothing else is available. We have too many agents who's first priorty is how they can make the most money without giving any thought to the drivers. There is a serious problem which I think will eventually bite Landstar in the butt, but what do I know I'm only a truck driver. }> }> }> ;-)