October 28, 2020

By Transport Intelligence

C.H. Robinson has reported its Q3-20 results. In the quarter ending, September 30, 2020, total revenues increased by 9.6%, compared to the same period in 2019, to $4.2bn, driven primarily by higher pricing and higher volume across most of its service lines. Net revenues decreased by 7.0% to $589.3m, driven mainly by rising costs and lower margin in truckload services, partially offset by contributions from the acquisition of Prime Distribution Services (“Prime”) and higher pricing in most of its service lines. Operating expenses decreased by 2.6% to $421.0m, due to approximately $40m of cost savings. Average headcount also decreased by 5.6%, which included headcount additions from Prime that added approximately 2.0 percentage points.

For Q3-20, total revenues for C.H. Robinson’s North American Surface Transportation (NAST) segment totalled $2.9bn, an increase of 3.5% over the prior year, primarily driven by higher truckload pricing and an increase in less than truckload (“LTL”) shipments. NAST net revenues decreased by 15.2% in the quarter to $367.9m, with the March 2020 acquisition of Prime contributing 3.5 percentage points of net revenue growth in the quarter. Net revenues in truckload decreased by 24.1%, less than truckload net revenues decreased by 4.4%, and intermodal net revenues increased by 6.1% versus the year-ago period.

Third quarter total revenues for the Global Forwarding segment increased by 39.2% to $832.0m, the main factor in this was the higher pricing in ocean and higher pricing in air due to reduced air cargo capacity, increased charter flights and larger shipment sizes. Net revenues increased by 16.1% in the quarter to $157.7m. Ocean net revenues increased by 14.3%, driven primarily by higher pricing and a 1.5% increase in volumes. Net revenues in air increased by 29.2% driven by higher pricing, partially offset by a 19.0% decline in shipments. Customs net revenues decreased by 5.3%, mainly driven by a 2.5% reduction in transaction volume.

Over the third quarter, Robinson Fresh net revenues decreased by 7.3% to $24.4m, primarily due to a 4.0% decrease in case volume, which was driven by a decline in foodservice volume. Managed Services net revenues increased by 11.5% in the quarter, primarily due to a 17.0% increase in volume. Other Surface Transportation net revenues decreased by 4.6% to $15.2m. Europe truckload net revenue was down 7% in the quarter.

“We believe we are still in the midst of a strengthening freight cycle that we anticipate will continue into 2021. Freight markets are continuing to tighten in the fourth quarter due to higher demand as we enter the holiday season and lower availability of carrier capacity.” stated, Biesterfeld, C.H. Robinson’s CEO.

Source: C.H. Robinson

October 28, 2020

By Transport Intelligence

C.H. Robinson has reported its Q3-20 results. In the quarter ending, September 30, 2020, total revenues increased by 9.6%, compared to the same period in 2019, to $4.2bn, driven primarily by higher pricing and higher volume across most of its service lines. Net revenues decreased by 7.0% to $589.3m, driven mainly by rising costs and lower margin in truckload services, partially offset by contributions from the acquisition of Prime Distribution Services (“Prime”) and higher pricing in most of its service lines. Operating expenses decreased by 2.6% to $421.0m, due to approximately $40m of cost savings. Average headcount also decreased by 5.6%, which included headcount additions from Prime that added approximately 2.0 percentage points.

For Q3-20, total revenues for C.H. Robinson’s North American Surface Transportation (NAST) segment totalled $2.9bn, an increase of 3.5% over the prior year, primarily driven by higher truckload pricing and an increase in less than truckload (“LTL”) shipments. NAST net revenues decreased by 15.2% in the quarter to $367.9m, with the March 2020 acquisition of Prime contributing 3.5 percentage points of net revenue growth in the quarter. Net revenues in truckload decreased by 24.1%, less than truckload net revenues decreased by 4.4%, and intermodal net revenues increased by 6.1% versus the year-ago period.

Third quarter total revenues for the Global Forwarding segment increased by 39.2% to $832.0m, the main factor in this was the higher pricing in ocean and higher pricing in air due to reduced air cargo capacity, increased charter flights and larger shipment sizes. Net revenues increased by 16.1% in the quarter to $157.7m. Ocean net revenues increased by 14.3%, driven primarily by higher pricing and a 1.5% increase in volumes. Net revenues in air increased by 29.2% driven by higher pricing, partially offset by a 19.0% decline in shipments. Customs net revenues decreased by 5.3%, mainly driven by a 2.5% reduction in transaction volume.

Over the third quarter, Robinson Fresh net revenues decreased by 7.3% to $24.4m, primarily due to a 4.0% decrease in case volume, which was driven by a decline in foodservice volume. Managed Services net revenues increased by 11.5% in the quarter, primarily due to a 17.0% increase in volume. Other Surface Transportation net revenues decreased by 4.6% to $15.2m. Europe truckload net revenue was down 7% in the quarter.

“We believe we are still in the midst of a strengthening freight cycle that we anticipate will continue into 2021. Freight markets are continuing to tighten in the fourth quarter due to higher demand as we enter the holiday season and lower availability of carrier capacity.” stated, Biesterfeld, C.H. Robinson’s CEO.

Source: C.H. Robinson