Landstar's Q1 2025: Diverging Insights on BCO Count, Capacity Trends, and Cross-Border Strategy

None



Truck Volume and Market Demand:
- Landstar reported that the number of loads hauled via truck exceeded the high end of their guidance in Q1 2025, marking the first time in at least 15 years that this occurred.
- The increase was driven by efforts by shippers to get ahead of anticipated tariffs and aggressive trade policies.

Insurance and Insurance Claims:
- The company experienced highly elevated insurance and claims costs in Q1 2025, with costs reaching 9.3% of BCO revenue compared to the historical average of 4.9%.
- This increase was attributed to factors such as increased net unfavorable development of prior year claim estimates, higher severity of cargo claims, and truck accidents.

Impact of Tariffs on International Trade:
- U.S.-Mexico cross-border revenue was approximately 11% of consolidated revenue in the 2024 fiscal year, with U.S.-Canada cross-border revenue at 4%.
- The inauguration of new U.S. trade and tariff policies created uncertainty and impacted international trade relationships, affecting Landstar's operations and financial results.

Heavy-Haul Service Revenue Growth:
- Landstar's heavy-haul revenue increased by 6% year-over-year in Q1 2025, driven by a 3% increase in heavy-haul revenue per load and a 3% increase in heavy-haul volume.
- This growth was supported by strategic focus and investment in heavy-haul services, as well as strong demand across various industry sectors.