Freight broker Landstar System said Tuesday that its larger scale and long track record of safety will become more attractive to shippers in a post-Montgomery world. The company saw a more material turnaround in operations during the second quarter even though results fell short of ****** ysts' expectations.
Revenue generated by Landstar's (NASDAQ: LSTR) business capacity owners (BCOs) increased 22% year over year to $563 million, as loads were up 10% and revenue per load was up 11%. Landstar's BCOs are owner-operators who haul almost exclusively for the company. Changes among this segment of capacity have historically signaled turns in the broader truckload market.
Trucks provided by BCOs increased 68 units sequentially to 8,544 units in the second quarter. This was the largest increase since the 2022 first quarter. The tractor count is up another 49 units so far in July. BCO turnover improved 310 bps y/y to 28.3% as utilization improved 12% y/y.
BCO revenue per mile—Landstar's preferred metric for TL pricing as it excludes fluctuations in diesel fuel prices—was up 11% y/y and 10% y/y on dry van and flatbed shipments, respectively.
Management sees this segment of capacity potentially growing faster following the Supreme Court's Montgomery v. Caribe Transport II ruling, which widened liability exposure for freight brokers found negligent in their driver hiring practices. The company said it is also having success courting small brokers looking to partner with brokers with better tech, vetting protocols and insurance programs.
#brokers
Revenue generated by Landstar's (NASDAQ: LSTR) business capacity owners (BCOs) increased 22% year over year to $563 million, as loads were up 10% and revenue per load was up 11%. Landstar's BCOs are owner-operators who haul almost exclusively for the company. Changes among this segment of capacity have historically signaled turns in the broader truckload market.
Trucks provided by BCOs increased 68 units sequentially to 8,544 units in the second quarter. This was the largest increase since the 2022 first quarter. The tractor count is up another 49 units so far in July. BCO turnover improved 310 bps y/y to 28.3% as utilization improved 12% y/y.
BCO revenue per mile—Landstar's preferred metric for TL pricing as it excludes fluctuations in diesel fuel prices—was up 11% y/y and 10% y/y on dry van and flatbed shipments, respectively.
Management sees this segment of capacity potentially growing faster following the Supreme Court's Montgomery v. Caribe Transport II ruling, which widened liability exposure for freight brokers found negligent in their driver hiring practices. The company said it is also having success courting small brokers looking to partner with brokers with better tech, vetting protocols and insurance programs.
#brokers
2 days ago
