Landstar responds to Supreme Court decision on carrier liability

Landstar System, Inc. (NASDAQ: LSTR) issued a statement addressing the U.S. Supreme Court's decision in Montgomery v. Caribe Transport II, LLC, which concerns the Federal Aviation Administration Authorization Act's safety exception to state law negligent selection claims preemption.

The Jacksonville, Florida-based transportation company operates through a network of approximately 8,500 trucks provided by independently owned Business Capacity Owners and utilizes approximately 65,000 independent third-party carriers. The company stated it applies multi-layered approaches to qualifying carriers and uses technology-enabled vetting tools.

"Safety is fundamental to how Landstar operates," said Frank Lonegro, President and Chief Executive Officer. "For years, we have applied disciplined processes to evaluate, qualify and arrange transportation solutions because it is the right thing to do for our customers, our independent agents, and the motoring public."

The company's carrier approval process includes reviewing federal licensing and safety-related data, ensuring adherence to operational standards, and investing in compliance technology tools. Landstar has reduced its approved carrier network size over time as internal systems and industry tools have enabled more rigorous carrier evaluation.

Landstar called for greater federal clarity regarding carrier selection standards and encouraged Congress, the U.S. Department of Transportation, and the Federal Motor Carrier Safety Administration to define expectations and evaluate current minimum financial responsibility requirements.

The company plans to continue evolving its carrier qualification programs, including ongoing investment in vetting technology and safety monitoring systems. Information is based on a company statement.

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