Does Landstar pay by the mile or percentage of the revenue?
 

Each Landstar owner operator is called a BCO, which stands for Business Capacity Owner. Pay is calculated according to the type of trailer the BCO is pulling and whether or not it is provided by Landstar or owned by the BCO.     

  • TRACTOR-ONLY: 65% of freight revenue.
  • TRACTOR-TRAILER: between 72% and 75% of freight revenue, depending on trailer type.

Some accessorial charges including Fuel Surcharge, Tarp and others are paid at 100%

Call us at 913-341-5858 to learn more or click here to schedule a phone meeting

How is a Landstar Owner Operator’s pay calculated?
 

Consider the following examples segregated by trailer type and trailer ownership:

Income scenario for a BCO pulling a 53’ Dry Van provided by Landstar

$ 1500.00 freight bill invoiced to a customer and itemized as follows:

                   $ 1275.00 Line Haul

                   $   225.00 Fuel Surcharge

$ 1053.75 is paid to the BCO, itemized as follows:

                   $ 828.75   Line Haul at 65%

                   $ 225.00   Fuel Surcharge at 100%

 

Income scenario for a BCO pulling a their own 53’ Dry Van

$ 1500.00 freight bill invoiced to a customer and itemized as follows:

                   $ 1275.00 Line Haul

                   $   225.00 Fuel Surcharge

$ 1143.00 is paid to the BCO, itemized as follows:

                   $ 828.75   Line Haul designated for the tractor at 65%

                   $   89.25   Line Haul designated for the trailer at 7%

                   $ 225.00   Fuel Surcharge paid at 100%

 

 Income scenario for a BCO pulling a their own 48’ Flatbed

$ 1700.00 freight bill invoiced to a customer and itemized as follows:

                   $ 1275.00 Line Haul

                   $   225.00 Fuel Surcharge

                   $   200.00 Tarp Fee

$ 1355.75 is paid to the BCO, itemized as follows:

                   $ 828.75   Line Haul designated for the tractor at 65%

                   $ 102.00   Line Haul designated for the trailer at 8%

                   $ 225.00   Fuel Surcharge paid at 100%

                   $ 200.00   Tarp Fee paid at 100%

 

Income scenario for a BCO pulling a their own 48’ Temperature Controlled Trailer

$ 1800.00 freight bill invoiced to a customer and itemized as follows:

                   $ 1575.00 Line Haul

                   $   225.00 Fuel Surcharge

$ 1406.25 is paid to the BCO, itemized as follows:

                   $ 1023.75   Line Haul designated for the tractor at 65%

                   $   157.50   Line Haul designated for the trailer at 10%

                   $   225.00   Fuel Surcharge paid at 100%

 

Call us at 913-341-5858 to learn more or click here to schedule a phone meeting

How much money can I earn as a Landstar Owner Operator?


“In a percentage based system, it’s not about chasing miles.”
 

Remember, Landstar owner operators / BCOs select their own loads and are paid a percentage of the revenue, not a flat rate per mile. This successful business model encourages a “run smart, not hard” attitude, because Landstar offers thousands of loads each day with revenue varying by location, commodity, and equipment required.

All loads are offered by over 1000 independent Landstar agencies located throughout North America. Landstar agencies are not confined to territory boundaries, which means you can be in Charlotte, NC loading for an agent located in Overland Park, KS.

This business model for Landstar agencies results in higher paying rates for owner-operators /BCOs, because Landstar agents are essentially competing with each other for you and your equipment. The result is many Landstar loads are the highest paying in the industry, which truly allows you the ability to “run smart, not hard”.

Since you are in complete control of the operation of your equipment, your success and revenue potential is directly connected to your dedication, work ethic, and how prudently you run your operation.  People who are organized and self starters are typically the most successful.

Call us to discuss in greater detail 913-341-5858 or click here to schedule a phone meeting.

How can a Landstar Owner Operator increase their bottom line revenue? 

 
It’s not about what you make, it’s about what you keep.
 
Consider these tips on maximizing revenue:
 
Be Efficient.
Landstar not only allows, but encourages, the pre-booking of loads. The goal is to always be moving toward the next load. Properly utilizing Landstar technology and tools will help accomplish this goal and our staff is always ready to help. Remember: increased miles do not always correlate to more money. The goal is to generate the most amount of revenue for the least amount of miles. 
 
Be Flexible.
You will always choose the loads you take, where you go, when you go home and how long you stay there. Remember, you are your own dispatcher. However, being too selective and not open minded to all types of freight may negatively impact revenue potential.
 
Be Smart.
Reduce operating costs with LCAPP (Landstar Contractor Advantage Purchasing Program) on fuel, tires and many other products and services. 
Participate in continued education class help both online and in the class room. 
 
Call us to discuss in greater detail 913-341-5858 or click here to schedule a phone meeting.
 

What are Landstar’s settlement deductions?

 
Escrow
A $500.00 escrow is required, deducted at $33.33 a week for 15 weeks.
 
Plates
Illinois annual base plate is $ 1,650.00, deducted at $91.67 per week for 18 weeks. Deductions do not start until 5th week. 
 
Permits
Illinois annual base plate is $ 200.00, deducted at $11.11 per week for 18 weeks. Deductions do not start until 5th week. 
 
EOBR
An Electronic On Board Recorder is required. Airtime service costs are deducted at $ 27.25 per month.  
 
Seal and Lock Program
Vans:  “Warlock” or “Enforcer” lock kit. Includes locks for trailer, kingpin, and air cuffs. Cost is $125.00, which is deducted at $25.00 per week for five weeks. 
Platform trailers require air cuff lock, and monthly deductions for Enforcer and Warlock locks are $35.00 and $45.00 respectively, deducted for five weeks.
 
Landstar Communications Network
$ 3.69 deducted weekly, which provides Landstar owner-operators / BCOs access to Landstar’s Load Board and Automatic Load Update programs. 
 

What are other business costs I should consider?
 

  • Fuel.  While Landstar pays 100% of its fuel surcharges to its owner operators, maximizing fuel economy directly impacts your bottom line.
  • Tractor / Trailer Loan Payments. Oftentimes a newer tractor with higher payments, but with much better fuel economy and less maintenance expense, can end up being a more profitable than a less expensive tractor with poor fuel economy.
  • Physical Damage Insurance.  This can be obtained through Landstar, with premiums deducted monthly from settlement.
  • Tires
  • Oil Changes
  • Tractor Maintenance Fund At your request, this can be a settlement deduction.
  • Cell Phone / Internet Service and Equipment
     
Call us to discuss in greater detail 913-341-5858 or click here to schedule a phone meeting.
 
 

How can Landstar help reduce my operating costs? 

 
  • Fuel Surcharges: Landstar passes back 100% of all billed fuel surcharges to its drivers, which amounts to hundreds of millions of dollars annually.
  • Discounts: Discounts on fuel, tires, equipment, services, and more through the Landstar Contractors Advantage Purchasing Program (LCAPP) help Landstar owner operators / BCOs reduce the cost of doing business and increase their bottom line.
  • Education: Landstar continually educates its drivers on many topics that can help reduce your operating costs and improve revenue.
 
Call us to discuss in greater detail 913-341-5858 or click here to schedule a phone meeting.