Trucking news and briefs for Wednesday, March 2, 2022:
Landstar projects $100M hit if two Ukrainian agencies shut down
In an 8-K filing to the U.S. Securities and Exchange Commission Monday, Landstar System (CCJ Top 250, No. 9) projects it could lose $100 million in the first quarter of fiscal year 2022 if two independent commission sales agencies it works with in Ukraine shut down due to the Russian invasion of the eastern European nation. Landstar said its priority, though, is the safety of the workforces in Ukraine.
"The priority for Landstar and both of these agencies is the safety and well-being of these agencies’ Ukrainian workforces and their families," the company said in the filing.
According to the filing, one of the agencies is located in eastern Ukraine, and the other is in western Ukraine. The agency operating in eastern Ukraine is the largest Landstar independent commission sales agency, the company says. The western Ukraine agency is another of the company’s largest.
Combined, the two agencies generated approximately $860 million, or 13%, of Landstar’s consolidated revenue in fiscal year 2021, the company notes.
Landstar estimated that the complete disruption of both Ukrainian-based agencies would have an adverse impact of $20 to $25 million per week in its truckload revenue. With four weeks remaining in the quarter, Landstar projects a potential $100 million revenue hit if the agencies’ operations are disrupted.
Landstar noted, however, that even if there is a complete disruption of the two Ukrainian agencies, the company still anticipates that revenue for the first quarter would exceed the high end of the range of $1.70 billion to $1.75 billion that it estimated in January.
Cargo Transporters promoting safety with new program
Cargo Transporters (CCJ Top 250, No. 170) is kicking off the Lytx Score Challenge, a new program aimed at promoting safety.
For the Lytx Score Challenge, randomly chosen pairs of Cargo Transporters drivers will compete against each other for the lowest weekly Risk Score. The scores will be determined based on events captured on their on-board dash camera systems that are reviewed by Lytx analysts. When the video system is triggered, and using established agreed upon criteria an event is designated as coachable, it is also assigned a score based on circumstances.
“Our Lytx Score Challenge is another way we are putting a spotlight on safety,” said Jerry Sigmon Jr., COO at Cargo Transporters. “It will engage our drivers in a fun and friendly competition. Our drivers have access to their scores all the time, but too few actually know them, and while management can talk about safety and best practices, with this challenge drivers will be doing the talking.”
Through April 4, after each matchup, the driver with the lowest Risk Score will advance to the next round. All Cargo Transporters drivers taking part in the program will receive a participation gift, and prizes will be awarded to the ultimate winner and to those reaching the groups of 16, 8 and 4.
