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How Landstar manages the driver shortage

Tags: Landstar, Blog posts, Industry News

Over the last several years the driver shortage and turnover rate in the transportation industry has become a serious problem and experts say the problem will get worse before it gets better.

Some companies are calling to aggressively increase driver pay in order to keep owner-operators with their fleets. However, Landstar is seeing a different trend – owner-operators who have found success and are sticking with Landstar despite the turbulence within the industry and high turnover rates elsewhere. 

“Landstar’s turnover is far below the 95-percent national average. In 2014, it was at 22 percent and for 2015 we saw just a slight increase to 25 percent,” explained Landstar Executive Vice President of Capacity Development Rocco Davanzo.

Landstar’s owner-operators averaged $176,000 in revenue per truck during 2015 and Davanzo believes the earnings potential for Landstar Business Capacity Owners plays a big role in low turnover rates.

“There’s plenty of opportunity for Landstar BCOs to make what they want to make and then some,” said Davanzo.

Landstar’s potential earnings, self-dispatch, flexible opportunities and percentage revenue are key points when it comes to owner-operator retention. Landstar’s owner-operator fleet stands at over 9,500 BCOs, proving that the self-dispatch business model not only attracts owner-operators, but keeps them. 

Throughout 2016, Landstar is offering new orientation classes and online webinars that are designed to show new and existing BCOs how to find a load, maximize their revenue and understand the difference just one extra load can make.

The hands-on orientation class is revenue focused and concentrates on teaching new BCOs the importance of hauling an additional load at the end of the week, month or year, and how vital that one load can be to their success as an independent owner-operator. The two day classes are being held Monday through Thursday in the orientation center located in Indianapolis, Indiana.

Landstar executives are also working to educate existing BCOs on how to increase their revenue during 2016. The Orientation and CABS departments are conducting webinars for existing BCOs to demonstrate how they can take advantage of all the opportunities Landstar has to offer. Classes began in January and will continue every Wednesday and Friday throughout 2016.

Both the webinars and new orientation classes utilize live load board data to show new BCOs that improving their “top line” will inevitably improve their bottom line. The two day classes are being held Monday through Thursday in the Indianapolis, Indiana, orientation center.  BCOs interested in taking Landstar’s Load Board Demo webinar can sign up through LandstarOnline.com or new BCOs can get more details about the hands-on orientation class by calling 1-866-205-9123.