Landstar Logistics offers full brokerage, intermodal and logistics services, analyzing customers’ needs and offering cost-effective distribution solutions. These include on-site transportation management, multimodal distribution and safe, dedicated fleet operations. In August 2000, Landstar Logistics became licensed as a Non Vessel Operating Common Carrier (NVOCC) offering full container load export service from the United States to ports around the world. As a neutral NVOCC, Landstar Logistics provides one-stop service including freight consolidation for its customers whose businesses are international in scope. In contracting for space with steamship lines with sufficient volume, Landstar Logistics arranges discounts over normal published tariffs, reducing freight charges to customers. The service is available to all Landstar customers via their local independent sales agents.
In 2000, Landstar continued its ongoing commitment to building success through the effective streamlining of administrative functions, standardization of systems and consolidation of operations. To that end, the Company relocated Landstar Ligon from Madisonville, Kentucky to Jacksonville, Florida in June, merged much of its operation with existing Jacksonville based carriers and established a recruiting and orientation center in Madisonville. While the move resulted in a one-time pre-tax charge of approximately $3 million in the second quarter, it reduced administrative costs and strengthened Landstar Ligon’s role in enhancing synergistic opportunities within the Company’s carrier group.
In its new location, the 66-year-old company shares Landstar’s headquarters with Landstar System, Inc. and its subsidiaries, Landstar Gemini, Landstar Express America, Landstar Logistics, Landstar Ranger and Signature Technology Services. The Company now operates from two strategic locations, the other at Landstar Inway headquarters in Rockford, Illinois. The two locations provide excellent geographical and marketing coverage of the country with critical information technology capabilities. They also provide technological back-up capabilities protecting critical information.
Landstar builds success through its ongoing extensive safety and compliance programs. In 2000, the Company removed the compliance function from its Safety department and built a separate regulatory Compliance department. Both departments serve the entire Landstar system. The new Compliance department provides all Landstar business capacity owners, independent sales agents and employees with consistent, uniform information regarding Landstar and regulatory compliance issues. The Safety department has expanded its efforts, focusing on education, orientation and awareness programs aimed at loss prevention. As a result, the operating companies delivered outstanding 2000 safety results — accidents were fewer and less severe. Last year, the Company had a crash involvement rate of only 3.3 per million miles driven and Department of Transportation recordable accident rate of .61 per million miles driven.Finding freight isn’t the only way Landstar business capacity owners utilize Internet and other advanced technology, new devices on the market can result in safer working conditions. On-board communications include diagnostic reporting, collision avoidance systems, docking radar, global satellite positioning and “smart cruise,” a combination cruise control and collision avoidance system. These valuable tools influence performance — helping professional truck operators drive safer and more efficiently.
The Company continues to offer PrePass weigh station bypass systems to its BCOs. PrePass uses transponders on trucks to electronically weigh them and verify their safety credentials before they turn off at weigh stations. Once they’re verified, a green light signals them to proceed around the station. The program promotes safety by reducing backed-up highway traffic at weigh stations across the country and is only open to carriers with safe Department of Transportation records. Last year, the state of Florida deployed PrePass which currently operates at 106 locations throughout the country with an additional 72 sites committed. More than 151,100 trucks from across the United States are enrolled in PrePass. Landstar is its largest customer.