Landstar tackles cargo theft, fraud with AI and specialized department
The company recently discovered a fraud incident that impacted its freight forwarding operations.
Trucking Dive, By Alejandra Carranza, May 16, 2025
Dive Brief:
- Landstar System saw elevated insurance and claim costs in Q1 due to cargo theft, carrier imposter scams and increased severity of trucking accidents, which it plans to tackle through the use of AI, according to a May 13 earnings call.
- In Q1 2025, insurance and claims costs were $39.9 million versus $26.3 million in Q1 2024. Insurance and claims costs were 9.3% of business capacity owner or independent owner-operator revenue in the quarter, compared to 5.8% in the year-ago quarter, according to CFO Jim Todd.
- Near the end of the quarter, the company discovered it fell victim to a fraud incident that impacted its international freight forwarding operations. The inception of the fraud dates back to 2019 and is isolated through a single satellite agent office, CEO Frank Lonegro said.
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