lstr new presentation

• Traded Nasdaq Stock Exchange - LSTR ticker symbol

• 1,300 Employees

• 1,400 Agent Offices

• 8,500+ Exclusive Business Capacity Owners

• Over 25,000 Contracted Capacity Providers

– Motor Carriers– Railroads– Ocean lines– Airlines– Warehousing

Corporate HeadquartersJacksonville, Florida

Customized Transportation• Multi-Modal Capabilities

- Blended Truckload Capacity - Intermodal / Rail - Ocean Forwarding / Container Drayage

• Expedited Services (time critical / time definite) - Express Truck and Air Freight Shipments - Air Charter

• Contract Services• Dedicated Operations• Project Cargo

Tailored Logistics (3PL) Services• Transportation Management Services• Warehousing and Distribution Services• Consulting & Optimization• Technology Solutions

Domestic & InternationalSupply Chain Management Solutions

5 Year Revenue (in millions)

2004 2005 2006 2007 2008

$1,956

$2,241

$2,413

$2,478

$2,615

$63.8

$275.9$100.7

$8.5$27.6

Disaster ReliefCore Business

Landstar Top Customers

Innovative Warehousing Model

• Warehouse Capacity Owners™ (WCO™)– Independent regional 3rd party providers– Well-established companies in their region

• World-Class Warehouse Management System

• Inventory visibility & control

• Management level reporting

• Standardized operating procedures

• Cycle time measurements

The Landstar Intermodal Advantage

• Intermodal Marketing Company

• Contract with all Class I railroads and all smaller shortline rails

that do intermodal - NS, CSXI, UP, BNSF, CPRS, CN, KCS, IAIS

• Over 3,500 “approved” draymen under contract

• Senior level contact with all service providers

• Routing and service options

• Recognized by Logistics Management as a IMC Industry leader.

LTL Service

Landstar LTL.com – LTL Van Service

• Innovative web based solution helps manage your LTL van operations, customer managed or Landstar Agent managed

• Ability to select your own LTL Carrier or use Landstar LTL Carriers at pre-negotiated rates or mix and match to meet your requirements

• Landstar LTL.com features “Click & Ship” functionality including “Track & Trace” along with freight “bill auditing” before shipment moves to help manage your ultimate LTL freight costs

• Service Areas included all United States and in and out of Canada

Flatbed LTL Service

Landstar Flatbed LTL

• Landstar agent managed

• Competitive rates and transit times

• Flatbed LTL delivers on same equipment that made the pickup resulting in fewer claims and more reliable service

• Service areas included all of United States

Capacity Qualification & Requirements

Third Party Capacity• Validate active authority and Satisfactory DOT rating or, if not rated, evaluate DOT

reportable accident history and/or SEAs as reported on SAFESAT• Verify liability insurance and cargo coverage with insurance providers that are rated

B+ or better by A.M. Best Company• Execute a Landstar Transportation Brokerage Agreement that clearly establishes

responsibilities, liabilities, indemnifications and insurance coverage requirements• Daily re-verification of all broker carriers qualification requirements with FMCSA data

on carrier

Dedicated Capacity – BCO• Extensive Background Screening including criminal back ground check and work

history verification• 23 years old with a minimum of 1 year of verifiable over the road experience in past 3

years• Class A CDL with Hazmat Endorsement

Total Available Truck Capacity Providers

8,677 8,728 9,205 8,993 9,039

18,221

22,511

23,821

24,102

25,021

Contract Carriers

Landstar BCO’s

300,000

Estimated

#

Of Trucks

20052004 2006 2007

as of fiscal year end Landstar Capacity2008

2008 Fiscal Year End

Landstar Trailer Capacity

*300,000+ Trailing units from Third Party Providers

2008 Fiscal Year End

Landstar Tractor Turnover %

BCO Orientation Process

• 2-Day Orientation

• Ongoing Safety & Business Planning

• Annual BCO Performance Reviews

• Hazardous Materials Orientation

• Defensive Driving Programs

• Quality Process

Undeveloped Frequency Per 1000 Shipments

Cargo Claim Ratio

Undeveloped Frequency Per 1,000 Shipments

A Quality Safety Process• BCO Safety Meetings

• Safety Thursdays

• Landstar Safety Officers (LSO)

• Safety Awards and Recognition Programs

• Truck Giveaway

• M.U.S.T. (Mutual Understanding of Safety Together)

“A unique program that brings shippers and Landstar representatives together to build safer working environments and solid business relationships”

DOT Recordable Accidents

Per Million Miles Traveled

0.580.51

0.47 0.470.51

0.180.160.160.170.18

0.77 0.770.830.83

0.74

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

2004 2005 2006 2007 2008

All D.O.T. Preventable D.O.T. Industry FrequencyPer Million Miles Traveled

Quality Standards!• Certified to the ISO 9001 standard since 1998

C-TPAT Certified June 2003

Information Sharing

L.E.A.D.S.® (Landstar Electronic Administrative Dispatch System)LCN (Landstar Communications Network)

EDI (Electronic Data Interchange)I.V.R. (Interactive Voice Response System) a.k.a. LYNN

North American Integration

Seamless Movements Throughout the World

• Contract covers all of North America• 1,400+ agents in North America• Agents at major border crossings• Bonded carriers• Experience in Canada & Mexico