Landstar has cut more than 35,000 carriers from approved network
Landstar says it has removed more than 35,000 carriers from its approved network over the past four years. The post Landstar has cut more than 35,000 carriers from approved network appeared first on FreightWaves.
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Landstar System has dramatically reduced the number of motor carriers approved to haul its brokered freight, cutting its carrier pool by about 35% over the past four years.
Matt Miller, Landstar’s vice president and chief safety and operations officer, disclosed the reduction during the Jacksonville, Florida-based company’s second-quarter earnings call on July 28. “Over more than 20 years in brokerage, we’ve always looked for ways to enhance our carrier vetting with people, process, technology, and information,” Miller said.
“Over the past four years, we’ve gone from over 100,000 approved carriers in the second quarter of 2022 to just over 64,000 at the end of the second quarter or a 35% reduction.” Landstar officials said the aim of the reduction was to tighten its focus on safety, security and service.
The reduction represents more than 35,000 carriers removed from Landstar’s approved network since mid-2022. window. googletag = window. googletag || {cmd: []}; googletag. cmd. push(function() {googletag. defineSlot('/21776187881/FW-Responsive-Main_Content-Slot1', [[300, 100], [320, 50], [728, 90], [468, 60]], 'div-gpt-ad-1709668545404-0').
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Overdrive, a sister publication of CCJ, reported that Landstar’s effort initially focused on combating cargo theft and freight fraud, with the company deploying enhanced vetting technology, identity checks and stricter compliance measures.
Jacksonville, Florida-based Landstar (Nasdaq: LSTR) is a major asset-light transportation logistics company operating through a network of independent freight agents and third-party capacity providers.
Landstar’s approved carrier pool stood at approximately 64,600 at the end of the second quarter, down another 7% year over year after declining 19% in the first quarter, according to previous FreightWaves reporting. Miller indicated that the company has no plans to ease its scrutiny of carriers.
“As new technologies and information become available, we’re going to continue to do just that, exactly what we’ve been doing,” Miller said. “We’re always looking for opportunities to drive safety, security, and service.”
Related: Landstar expects to emerge a winner in post-Montgomery world Carrier vetting takes on greater significance after Montgomery Landstar’s multiyear carrier purge takes on additional significance following the U. S. Supreme Court’s May ruling in Montgomery v.
Caribe Transport II, which widened the potential liability exposure facing freight brokers over the selection of motor carriers. The ruling has heightened concerns across the brokerage industry about how companies select and monitor carriers, potentially increasing the importance of documented vetting procedures. window. googletag = window.
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collapseEmptyDivs(); googletag. enableServices(); }); googletag. cmd. push(function() {googletag. display('div-gpt-ad-1665767553440-0'); }); Landstar CEO Frank Lonegro said during the earnings call that the company believes federal regulators need to provide clearer standards for the industry.
“We believe greater Federal clarity around carrier vetting and selection standards would help support a more predictable operations, insurance, and claims environment for truck brokers, carriers, and shippers,” Lonegro said. Landstar reported approximately $10. 5 million in unfavorable adjustments to prior-year claims during the second quarter.
Three of the five claims responsible for nearly all of that adjustment involved truck brokerage operations. The company has also said its scale, safety record, technology and insurance programs could become competitive advantages following Montgomery.
Landstar recently signed an $18 million Midwest freight broker as an independent agent, and Lonegro said inquiries from prospective agents have accelerated since the Supreme Court decision was released in mid-May.
Landstar CFO Jim Todd said the decision means broker liability cases that previously may have been dismissed on federal preemption grounds could now have to be litigated. window. googletag = window. googletag || {cmd: []}; googletag. cmd. push(function() {googletag.
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This briefing is based on reporting from Freightwaves. Use the original post for full primary-source context.
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