Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
Stout L Kevin
  2. Issuer Name and Ticker or Trading Symbol
LANDSTAR SYSTEM INC [LSTR]
5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
VP, CFO and Asst Secretary
(Last)
(First)
(Middle)
13410 SUTTON PARK DRIVE SOUTH
3. Date of Earliest Transaction (Month/Day/Year)
11/10/2016
(Street)

JACKSONVILLE, FL 32224
4. If Amendment, Date Original Filed(Month/Day/Year)
6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)
2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)
4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)
5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)
6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)
7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock 11/10/2016   M   1,895 A $ 44.32 21,276 D  
Common Stock 11/10/2016   M   16,460 A $ 41.57 37,736 D  
Common Stock 11/10/2016   F   13,323 (1) D $ 79.31 24,413 D  
Common Stock 11/10/2016   S   5,000 D $ 79.3182 (2) 19,413 D  
Common Stock 11/14/2016   M   2,619 A $ 38.18 22,032 D  
Common Stock 11/14/2016   M   1,105 A $ 44.32 23,137 D  
Common Stock 11/14/2016   M   3,540 A $ 41.57 26,677 D  

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)
2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)
5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)
6. Date Exercisable and Expiration Date
(Month/Day/Year)
7. Title and Amount of Underlying Securities
(Instr. 3 and 4)
8. Price of Derivative Security
(Instr. 5)
9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)
10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)
11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Stock Options (Right to Buy) $ 44.32 11/10/2016   M     1,895   (3) 02/01/2017 Common Stock 1,895 $ 0 1,105 D  
Stock Options (Right to Buy) $ 41.57 11/10/2016   M     16,460   (4) 01/02/2018 Common Stock 16,460 $ 0 3,540 D  
Stock Options (Right to Buy) $ 38.18 11/14/2016   M     2,619 01/02/2012 01/02/2017 Common Stock 2,619 $ 0 0 D  
Stock Options (Right to Buy) $ 44.32 11/14/2016   M     1,105   (5) 02/01/2017 Common Stock 1,105 $ 0 0 D  
Stock Options (Right to Buy) $ 41.57 11/14/2016   M     3,540   (6) 01/02/2018 Common Stock 3,540 $ 0 0 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
Stout L Kevin
13410 SUTTON PARK DRIVE SOUTH
JACKSONVILLE, FL 32224
      VP, CFO and Asst Secretary  

Signatures

 /s/ James P. Todd, attorney-in-fact   11/14/2016
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) Represents shares withheld to pay the exercise price and tax withholding obligations.
(2) The price reported is the weighted average sales price for the transactions reported. The prices received ranged from $79.275 to $79.3556. The reporting person will provide to the issuer, a security holder of the issuer, or the SEC staff, upon request, full information regarding the number of shares sold at each price within the range.
(3) Options became exercisable as to 600 shares on each of 02/01/2008 and 02/01/2009, 95 shares on 02/01/2010 and 600 shares on 02/01/2012.
(4) Options became exercisable as to 4,000 shares on each of 01/02/2009 and 01/02/2010, 2,865 shares on 01/02/2011, 4,000 shares on 01/02/2012 and 1,595 shares on 01/02/2013.
(5) Options became exercisable as to 505 shares on 02/01/2010 and 600 shares on 02/01/2011.
(6) Options became exercisable as to 1,135 shares on 01/02/2011 and 2,405 shares on 01/02/2013.

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