CH Robinson: overall solid performance masks modal differences
01 / 08 / 2019
Third-party logistics provider CH Robinson achieved net revenue of USD695.2m during the second quarter of 2019, up 3.5% year-on-year, in what chief executive Bob Biesterfeld described as a “solid performance”.
However, a breakdown according to different business areas reveals a mixed picture. While the strength of CH Robinson’s North American trucking activities bolstered the overall results, the company’s Global Forwarding segment saw its net revenue drop by 1.5% to USD141,936.
This was driven by a fall in both ocean and airfreight rates as well as a decline in airfreight volumes. Indeed, net revenues from airfreight fell by 15.4% for the quarter, to USD26,134.
On the other hand, the recently acquired Spanish forwarder Space Cargo Group contributed 3 percentage points of net revenue growth to the Global Forwarding segment during the second quarter.
Looking forward, Biesterfeld said he expects the soft freight environment to continue through the rest of 2019.
But: “Despite the current freight environment, our long-term goals remain unchanged,” he said. “We remain focused on taking market share, automating core processes while delivering industry-leading quality service to our customers and carriers, and improving operating leverage in our businesses.”