Analyst Note| Matthew Young, CFA |
Wide-moat truck broker Landstar’s fourth-quarter gross revenue soared 30% year over year as the truckload backdrop has swung decidedly favorable since the summer months. Dry van demand is seeing tailwinds from staggeringly strong consumer goods spending and related retailer restocking. U.S. industrial end markets are still sluggish but sequential progress lifted flatbed demand. On top of that, truckload market capacity tightened and spot-rates have surged. The firm also saw a jump in substitute linehaul opportunities serving the parcel carriers. Overall, total-truckload volumes rose 13%, while average revenue per load jumped a notable 16%.