Landstar Sees Growth in BCO Fleet Amid Regulatory Changes
Freight broker Landstar System reported strong growth in its business capacity owner (BCO) segment during the second quarter of 2026, with a significant increase in tractor units and improved utilization. Revenue from this segment rose by 22% year-over-year to $563 million as loads increased by 10%. Landstar anticipates further growth following recent regulatory changes like the Supreme Court's Montgomery v. Caribe Transport II ruling, which could shift liability dynamics for freight brokers. Landstar also noted a reduction in its approved carrier list from over 100,000 to 64,600 carriers since early 2022 as part of efforts to mitigate cargo theft and improve safety. The company has attracted smaller brokers seeking better technology and vetting processes, including one Midwest broker generating $18 million in annual revenue. Despite a second-quarter earnings per share (EPS) miss due to prior-year claim developments, Landstar's consolidated revenue rose 18% year-over-year to $1.43 billion, exceeding analyst expectations.
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