LSTR’s transportation logistics segment
Landstar System’s (LSTR) transportation logistics segment provides its customers with a wide range of integrated transportation management solutions. These solutions include truckload and LTL transportation, as well as expedited ground and air delivery of time-critical freight, heavy-haul, project cargo, and customs brokerage through an array of trucks, rail, air, and ocean services. To learn more about these terms, read Important terminology in the trucking industry.
Truck services provide freight services over irregular or non-repetitive routes, as well as Less Than Truckload (or LTL) services. It utilizes a fleet consisting of dry and specialty vans of various sizes; unsided or platform trailers such as flatbeds, drop decks, and light specialty trailers; and temperature-controlled vans and containers.
Rail intermodal services
The segment’s rail intermodal services enable the company to transport freight via rail throughout the United States, Canada, and Mexico. This is made possible through a number of contracts with Class 1 domestic and Canadian railroads and local trucking companies that handle pickup and delivery of rail freight. These services are also made possible through agreements with stacktrain operators, as well as container and trailing equipment companies.
The segment also executes international freight transportation as an IATA-certified Indirect Air Carrier, a Federal Maritime Commission licensed non-vessel operating common carrier (or NVOCC), and as a licensed freight forwarder. It provides door-to-door transportation to most points in the world for a vast array of cargo types.
The segment also provides nationwide access to its available warehouse capacity consisting of independently owned and operated regional warehouse facilities.
During fiscal year 2013, the transportation logistics segment contributed to about 99% of the total revenue of the company. Plus, 93% of the segment’s revenue came from its truck services, including the contribution by BCO Independent Contractors and Truck Brokerage Carriers of 50% and 43%, respectively.
Truck transportation revenue hauled via van equipment, platform trailing equipment, and LTL came to 60%, 37%, and 3% respectively, of the truck services revenue. The rail intermodal services and the air and ocean services contributed to 3% each respectively to the segment’s total revenues. The remaining 1% was contributed by the warehouse facility provided by the company.