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 during the company's second-quarter earnings call that the approved carrier count fell from over 100,000 in the second quarter of 2022 to just over 64,000 at the end of the second quarter of 2024, a reduction of more than 35,000 carriers. The Jacksonville, Florida-based logistics company said the move tightens its focus on safety, security, and service, and it has no plans to ease scrutiny. The carrier purge takes on added significance after the U.S. Supreme Court's May ruling in Montgomery v. Caribe Transport II, which widened potential liability exposure for freight brokers over carrier selection, and Landstar CEO Frank Lonegro called for greater federal clarity around vetting standards.
Landstar System IncLandstar's carrier reduction is partly a response to increased legal liability from a Supreme Court ruling, tightening vetting standards.
