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Landstar System Inc. is a transportation company that specializes in freight services, third-party logistics and supply chain solutions. It offers a variety of multimodal transport services throughout the United States, Canada and Mexico, as well as other countries around the world. The company works primarily through a network of third party operators and independent sales agents linked together via a series of information systems that it provides and coordinates.
The company transports a wide variety of cargo, including steel, iron, paper, lumber, foodstuffs, automobile products, chemicals and military hardware. It accomplished this through focusing on truckload freight services across a number of different modes of transportation. Since the company is an asset-light provider, it does all this through using a number of third-party capacity providers to store and transport their customers’ cargo.
This approach has proven to be profitable for the company. It consistently registers revenues of at least $3.3 billion per annum and owns assets estimated to be worth $1.04 billion. Furthermore, the company employs just over 1,200 people. It also has a network of over 9,000 third-party operators and 1,000 independent agents. The company’s headquarters are in Jacksonville, Florida.
A Connecticut-based industrial services firm named NEOAX acquired IU International Corp. in 1988 through a hostile takeover. IU International had, in turn, acquired a number of trucking companies before this, which the company operated under the umbrella of IU Truckload Group. Their major clients included the U.S. Department of Defense and several different auto makers.
NEOAX proceeded to reorganize its new acquisition, which left it with five transport carriers, each with its own specialties. These carriers included Ranger Transportation Inc., Gemini Transport Inc., Independent Freightway Inc., Poole Truck Lines Inc. and Ligon Nationwide Inc. These entities had generated combined sales of over $570 million in the previous year.
Landstar System Inc. was formed in the last months of 1988 with the main focus of purchasing IU Truckload Group from NEOAX. The company successfully carried out this management buyout, with NEOAX retaining a 49 percent interest in the new enterprise. The head of the Truckload Group, John B. Bowron, then became the CEO and chairman of Landstar System Inc. In 1989, Jeffrey C. Crowe from Independent Freightway took over as the company’s CEO.
NEOAX sold its stake in the company to Landstar in 1991. Crowe then took over the position of chairman of the board after this deal went through. From that time, Landstar’s revenues increased significantly and the company began buying several small- and medium-sized carriers. The company then moved its corporate headquarters from Stamford to Shelton, Connecticut in 1992.
Landstar went public in 1993. This IPO enabled the company to shift its focus to expanding its operations. This is why the 1990s are characterized by numerous expansions and acquisitions for the company. These acquisitions allowed the company to increase the range of services it offered to include long hauls and refrigerated freight, among others.
In 1995, Landstar invested in upgrading its communications and information technology systems. This move helped improve how the company communicated with its drivers and field stations. Soon after, the company was ranked as the third-largest truckload operator in America. By 1997, the company’s revenues were an estimated $1.2 billion and it relocated its corporate headquarters to Jacksonville, Florida.
Unlike many other transport companies, Landstar System Inc. has been able to operate an asset-light business with great success. This is because the company has implemented a unique business model known as BCO (Business Capacity Operators).
This means that Landstar gets freight contracts directly from its clients but uses its network of third party operators to store and transport the customers’ freight. This is the perfect system that has ensured the company keeps its overhead down while reaping maximum profits.
Today, Landstar works with an extensive network of more than 10,000 operators throughout America, Canada, Mexico and other parts of the world. Unlike traditional trucking firms, the company allows its drivers to choose their own loads. In turn, its independent agents get freight contacts and loads directly from shippers.
The company operates in two major segments, including its transportation logistics segment and its insurance segment. Unlike traditional truckers, this company delivers its services through a network of third party capacity providers and independent sales agents. This extensive network is linked via a series of sophisticated IT applications and innovations that are provided and operated by Landstar. This allows the company to operate an integrated, streamlined transport management solutions enterprise.
13410 Sutton Park Dr S.
Jacksonville, Florida 32224