Truckload giant Landstar System increased net profit 38.5 percent to $30.2 million on a 9.8 percent increase in revenue to $684 million in the third quarter.
The $1.3 billion trucking operator saw freight volume increase year-over-year each month in the third quarter, said Henry Gerkens, chairman, president and CEO.
“Recent trends in September, and thus far in October, indicate continued strength in revenue per load and load volume,” Gerkens said in a statement.
Loads hauled by the company’s owner-operators dipped 2 percent, but brokered loads rose 4.5 percent year-over-year to 43 percent of total volume. Rail intermodal, ocean and air cargo volumes also increased slightly. Landstar’s total load volume for all business segments was up 0.9 percent in the quarter.
Owner-operator yield or average revenue per truckload rose 9.6 percent from a year ago, while yield on brokered loads rose 9.5 percent in the same period. The company reduced its owner-operator fleet by about 1.2 percent, while expanding its active and approved brokerage fleet 5.8 percent year-over-year.
That indicates non-asset Landstar is shifting more freight toward third-party brokerage as it raises truckload rates and fuel surcharges on shippers.