Executives at the truck brokerage and logistics services provider Landstar System believe impending hours-of-service (HOS) regulations on the U.S. trucking industry won’t have too significant on its beneficial cargo owner (BCO) fleets, according to the investment bank Stifel Nicolas.
Stifel attended Landstar’s Analyst Day, where Landstar laid out its vision and coming expectations. Among the dynamics to emerge: the July 1 hours-of-service changes shouldn’t unduly burden BCOs.
“The company’s business capacity owners are paid on a percentage of revenue and not on miles,” Stifel wrote in an analyst note. “Additionally, the company does not currently have a lot of drivers using the full week’s allowable hours. As a result, Landstar management does not see the new HOS as a huge impact on the BCO fleet. For broker carriers, however, the affects of the new HOS are ‘hard to determine.’”
BCO fleets shouldn’t be hampered by HOS changes
