Published on 21 May 2024 on Zacks via Yahoo Finance
Landstar System, Inc. (LSTR) is being hurt by weak freight conditions. The top line has been suffering mainly due to the below-par performance of its key segment, namely, truck transportation. Revenues are likely to be weak going forward as well. LSTR expects second-quarter 2024 truckload to decline in the range of 5%-9% on a year-over-year basis and truck revenue per load to decline in the range of 0%-4% on a year-over-year basis. Weakness in overall volumes due to headwinds like weak freight conditions, supply-chain woes and slower network velocity is hurting the top line.
Driver shortage continues to be a major challenge facing the trucking industry. As old drivers retire, trucking companies find it difficult to hire drivers since the job does not appeal to the younger generation.