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FinanceLandstar System, a major asset-light transportation logistics company, has removed more than 35,000 motor carriers from its approved network over the past four years, reducing its carrier pool from over 100,000 in Q2 2022 to just over 64,000 by Q2 2026. The reduction, disclosed by VP Matt Miller during the company's Q2 earnings call, aims to enhance safety, security, and service, with initial efforts targeting cargo theft and freight fraud through improved vetting technology and identity checks. The move gains added significance after the U.S. Supreme Court's May ruling in Montgomery v. Caribe Transport II, which widened broker liability for carrier selection. Landstar CEO Frank Lonegro called for clearer federal standards, while CFO Jim Todd noted the ruling may embolden plaintiffs. Landstar reported $10.5 million in unfavorable prior-year claims adjustments, mostly from brokerage operations, but sees its scale and safety record as potential competitive advantages.
FreightWavesNeutral / independent
Landstar cuts 35,000 carriers after Supreme Court broker liability ruling