DC Velocity: “Robinson gets caught in buy-sell squeeze as second-quarter truckload net revenues plunge”
Robinson gets caught in buy-sell squeeze as second-quarter truckload net revenues plunge
Truckload shippers, it seems, will not agree to contract rate increases even if there are only two trucks left on the road.
C.H. Robinson Worldwide Inc., the nation’s largest freight broker and a major third-party logistics provider (3PL), felt the wrath of shipper stubbornness during its second quarter, the results of which were disclosed after the markets closed late yesterday. In Robinson’s core truckload business, net revenues—revenues after backing out the costs of purchased transportation—fell 14.3 percent year over year. Net revenues in its intermodal business fell 7.9 percent year over year. Less-than-truckload net revenue climbed 2.4 percent year over year.
The company reported strong net revenue gains in air, ocean, and customs brokerage. Gross revenues—total revenue before transport costs—rose 12.4 percent.
Read more here.