| Metric                                             | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-----------------------------------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Average Truckload Linehaul Cost per Mile            | -24.0%  **[CHRW_3226407_1]**  | -28.5%  **[CHRW_3247549_1]**  | -19.0%  **[0001043277-23-000029_chrw-20230630.htm:24]** **[0001043277-23-000029_chrw-20230630.htm:30]**  | -13.5%  **[0001043277-23-000036_chrw-20230930.htm:26]**  | -10.5%  **[CHRW_3371449_2]**  | -7.5%  **[0001043277-24-000026_chrw-20240331.htm:23]**  | -3.5%  **[0001043277-24-000042_chrw-20240630.htm:27]**  | -0.5%  **[0001043277-24-000051_chrw-20240930.htm:31]**  |
| Average Truckload Linehaul Rate Charged             | -21.0%  **[0001043277-23-000003_ex991earningsreleaseq41231.htm:3]** **[0001043277-23-000003_q42022earningsdeck.htm:1]**  | -27.5%  **[0001043277-23-000016_chrw-20230331.htm:22]**  | -23.0%  **[0001043277-23-000029_chrw-20230630.htm:24]**  | -16.5%  **[0001043277-23-000036_chrw-20230930.htm:26]**  | -13.5%  **[CHRW_3371449_2]**  | -7.5%  **[0001043277-24-000026_chrw-20240331.htm:23]**  | -2.0%  **[0001043277-24-000042_chrw-20240630.htm:27]**  | +2.5%  **[0001043277-24-000051_chrw-20240930.htm:31]**  |
| Ocean Freight Volumes                               | -9.5%  **[CHRW_3226407_1]**  | -14.5%  **[0001043277-23-000016_chrw-20230331.htm:22]**  | -7.0%  **[0001043277-23-000029_chrw-20230630.htm:24]**  | -0.5%  **[0001043277-23-000036_chrw-20230930.htm:26]** **[0001043277-23-000034_q32023earningsdeck.htm:2]**  | +4.0%  **[CHRW_3371449_2]**  | +7.0%  **[CHRW_3381897_2]** **[0001043277-24-000026_chrw-20240331.htm:23]**  | +4.0%  **[0001043277-24-000042_chrw-20240630.htm:27]** **[0001043277-24-000039_q22024earningsdeck.htm:2]** **[0001043277-24-000039_q22024earningsdeck.htm:3]**  | +7.0%  **[0001043277-24-000051_chrw-20240930.htm:31]**  |
| Air Freight Tonnage                                 | -19.5%  **[CHRW_3226407_1]**  | -18.5%  **[0001043277-23-000016_chrw-20230331.htm:22]**  | -2.0%  **[0001043277-23-000029_chrw-20230630.htm:24]**  | -2.0%  **[0001043277-23-000036_chrw-20230930.htm:26]**  | -6.5%  **[0001043277-24-000011_chrw-20231231.htm:48]**  | +23.0%  **[0001043277-24-000026_chrw-20240331.htm:23]**  | +11.0%  **[0001043277-24-000042_chrw-20240630.htm:27]**  | +20.0%  **[0001043277-24-000051_chrw-20240930.htm:31]**  |

8e4bf8917414d7bc3aa11305514b88ed8de3ea76901c54d3a4e3911d4628a0cc

| Metric (USD Thousands) | 2022 Total | 2023 Total |
|------------------------|------------|------------|
| U.S. Revenue           | 20,696,448  **[0001043277-23-000005_chrw-20221231.htm:90]**  | 14,795,659  **[0001043277-24-000011_chrw-20231231.htm:94]**  |
| Other Locations Revenue| 4,000,177  **[0001043277-23-000005_chrw-20221231.htm:90]**   | 2,800,784  **[0001043277-24-000011_chrw-20231231.htm:94]**   |
| Total Revenue          | 24,696,625  **[0001043277-23-000005_chrw-20221231.htm:90]**  | 17,596,443  **[0001043277-24-000011_chrw-20231231.htm:94]**  |

2a7d6aaa1652fa4ca93a06020ddbf1ee75f0b75157e2334d2f4c67a358284b49

Average Truckload Linehaul Cost per Mile

Average Truckload Linehaul Rate Charged

Ocean Freight Volumes

Air Freight Tonnage

a412b0195eba54d1278eb4f175f20fdceb2f802d36f51454fa8e1500264f5f21

C.H. Robinson Worldwide, Inc. is a leading global logistics company that connects customers, carriers, and suppliers to enhance and grow supply chains. The company operates through two primary segments: North American Surface Transportation (NAST) and Global Forwarding, with additional activities categorized under All Other and Corporate **[0001043277-24-000011_chrw-20231231.htm:93]** **[0001043277-24-000011_chrw-20231231.htm:4]** **[0001043277-24-000042_chrw-20240630.htm:15]**. In addition to transportation and logistics services, C.H. Robinson offers sourcing services under the Robinson Fresh brand, which involves the buying, selling, and marketing of fresh fruits, vegetables, and other perishable items **[0001043277-24-000011_chrw-20231231.htm:3]** **[0001043277-24-000011_chrw-20231231.htm:96]**. The company also provides value-added logistics services, such as customs brokerage, managed services, warehousing, and supply chain consulting **[0001043277-24-000011_chrw-20231231.htm:96]**.

1. **North American Surface Transportation (NAST)** - Provides freight transportation services across North America, focusing on truckload and less-than-truckload (LTL) transportation services.
2. **Global Forwarding** - Offers international logistics services, including ocean and air freight services and customs brokerage, through a global network.
3. **Robinson Fresh** - Involves the buying, selling, and marketing of fresh fruits, vegetables, and other perishable items.
4. **Value-Added Logistics Services** - Includes customs brokerage, managed services, warehousing, and supply chain consulting.

45c92a0c76d5f2d48ef431ec11cdc431bb4f79c9fd8f859f9a0a4f91d41ad5e1

Adjustments for Non-Cash Items [USD, Thousands]

Stock-Based Compensation [USD, Thousands]

Changes in Working Capital [USD, Thousands]

Proceeds from / Repayments of Debt [USD, Thousands]

Share Repurchases [USD, Thousands]

Dividend Payments [USD, Thousands]

Net Change in Cash [USD, Thousands]

47a16b4a561dbf460f408ce21a8cd583a99162557f6314aa3bbd21264f0332a1

| Metric (USD Thousands) | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| North American Surface Transportation (NAST) | **3,563,071**  **[0001043277-23-000003_ex991earningsreleaseq41231.htm:10]**  | **3,304,187**  **[0001043277-23-000013_ex991earningsreleaseq133123.htm:7]**  | **3,079,268**  **[0001043277-23-000026_ex991earningsreleaseq263023.htm:12]** **[0001043277-23-000029_chrw-20230630.htm:15]**  | **3,086,970**  **[0001043277-23-000034_ex991earningsreleaseq393023.htm:12]**  | **3,000,650**  **[0001043277-24-000007_ex991earningsreleaseq41231.htm:13]**  | **3,000,313**  **[0001043277-24-000023_ex991earningsreleaseq10331.htm:9]**  | **2,989,909**  **[0001043277-24-000039_ex991earningsreleaseq20630.htm:11]**  | **2,934,617**  **[0001043277-24-000049_ex991earningsreleaseq30930.htm:13]**  |
| Global Forwarding | **1,013,306**  **[0001043277-23-000003_ex991earningsreleaseq41231.htm:10]**  | **789,978**  **[0001043277-23-000013_ex991earningsreleaseq133123.htm:7]**  | **779,867**  **[0001043277-23-000026_ex991earningsreleaseq263023.htm:12]** **[0001043277-23-000029_chrw-20230630.htm:15]**  | **719,045**  **[0001043277-23-000034_ex991earningsreleaseq393023.htm:12]**  | **708,814**  **[0001043277-24-000007_ex991earningsreleaseq41231.htm:13]**  | **858,637**  **[0001043277-24-000023_ex991earningsreleaseq10331.htm:9]**  | **921,223**  **[0001043277-24-000039_ex991earningsreleaseq20630.htm:11]**  | **1,141,190**  **[0001043277-24-000049_ex991earningsreleaseq30930.htm:13]**  |
| All Other and Corporate | **490,444**  **[0001043277-23-000003_ex991earningsreleaseq41231.htm:10]**  | **517,505**  **[0001043277-23-000013_ex991earningsreleaseq133123.htm:7]**  | **562,721**  **[0001043277-23-000026_ex991earningsreleaseq263023.htm:12]** **[0001043277-23-000029_chrw-20230630.htm:15]**  | **535,015**  **[0001043277-23-000034_ex991earningsreleaseq393023.htm:12]**  | **512,423**  **[0001043277-24-000007_ex991earningsreleaseq41231.htm:13]**  | **553,361**  **[0001043277-24-000023_ex991earningsreleaseq10331.htm:9]**  | **572,216**  **[0001043277-24-000039_ex991earningsreleaseq20630.htm:11]**  | **568,834**  **[0001043277-24-000049_ex991earningsreleaseq30930.htm:13]**  |
| Consolidated Total Revenues | **5,066,821**  **[0001043277-23-000003_ex991earningsreleaseq41231.htm:10]**  | **4,611,670**  **[0001043277-23-000013_ex991earningsreleaseq133123.htm:7]**  | **4,421,856**  **[0001043277-23-000026_ex991earningsreleaseq263023.htm:12]** **[0001043277-23-000029_chrw-20230630.htm:15]**  | **4,341,030**  **[0001043277-23-000034_ex991earningsreleaseq393023.htm:12]**  | **4,221,887**  **[0001043277-24-000007_ex991earningsreleaseq41231.htm:13]**  | **4,412,311**  **[0001043277-24-000023_ex991earningsreleaseq10331.htm:9]**  | **4,483,348**  **[0001043277-24-000039_ex991earningsreleaseq20630.htm:11]**  | **4,644,641**  **[0001043277-24-000049_ex991earningsreleaseq30930.htm:13]**  |

01de80cd2ce308e93f870d71ac1c89c209344dfa1366b01b5e2978ba0ebb6c4a

1. Given that you're implementing a new operating model and expecting significant productivity improvements of 32% over 2023 and 2024 combined  **[CHRW_3395347_2]** , how confident are you that these improvements are sustainable and won't negatively impact service quality or employee morale, especially as you decouple headcount growth from volume growth?
2. You've mentioned that the freight market is in an elongated recession with no immediate signs of inflection  **[CHRW_3395347_13]** , yet you're focusing on gaining market share and expanding margins  **[CHRW_3395347_8]** ; how do you plan to achieve margin expansion in such a challenging environment without compromising on competitive pricing or sacrificing volumes?
3. With the sale of your European Surface Transportation business to focus on your four core modes  **[CHRW_3395347_2]** , can you elaborate on how this divestiture will impact your global operations and whether you foresee any risks in narrowing your geographic presence?
4. Your goal is to deliver higher highs and higher lows over the course of freight market cycles, targeting 40% operating margins for NAST and 30% for Global Forwarding  **[CHRW_3395347_10]** ; given the current tough market conditions, what specific actions are you taking to reach these targets, and how realistic are these margins in the near term?
5. Given the leadership changes, including the transition of Arun Rajan to Chief Strategy and Innovation Officer  **[CHRW_3395347_3]** **[CHRW_3395347_4]**  and the appointment of a new CFO  **[CHRW_3395347_2]** , how are you ensuring that these changes won't disrupt your ongoing transformation efforts, and what measures are in place to maintain continuity and effective execution of your strategy?

33029d3981fc68317acf02e3eff2d348e671b3319b573b29df8829443bd129c5

8dc2f22ad125c7a87b79dd790018eba024e0257a75aa19cdb24c2a52012e53ae

### Q2 2024 Earnings Call
   - **Issued Period**: Q2 2024
   - **Guided Period**: FY 2024
   - **Guidance**:
     - **Personnel Expenses**: Expected to be in the range of **$1.4 billion to $1.5 billion**, likely below the midpoint  **[CHRW_3395347_7]** .
     - **SG&A Expenses**: Expected to be in the range of **$575 million to $625 million**, likely below the midpoint. Includes depreciation and amortization expense of **$90 million to $100 million**  **[CHRW_3395347_7]** .
     - **Effective Tax Rate**: Expected to be in the range of **17% to 19%**  **[CHRW_3395347_7]** .
     - **Capital Expenditures**: Expected to be toward the lower end of **$85 million to $95 million**  **[CHRW_3395347_7]** .
     - **Net Debt-to-EBITDA Leverage**: Was 2.4x at the end of Q2, down from 2.73x at the end of Q1  **[CHRW_3395347_7]** .

### Q1 2024 Earnings Call
   - **Issued Period**: Q1 2024
   - **Guided Period**: FY 2024
   - **Guidance**:
     - **Capital Expenditures**: Expected to be between **$85 million to $95 million**  **[CHRW_3381897_6]** .
     - **Personnel Expenses**: Expected to be in the range of **$1.4 billion to $1.5 billion**  **[CHRW_3381897_5]** .
     - **SG&A Expenses**: Expected to be in the range of **$575 million to $625 million**  **[CHRW_3381897_5]** .
     - **Depreciation and Amortization Expense**: Expected to be between **$90 million to $100 million**  **[CHRW_3381897_5]** .
     - **Effective Tax Rate**: Expected to be in the range of **17% to 19%**  **[CHRW_3381897_5]** .
     - **Productivity Improvements**: Targeting an additional **15% improvement in NAST shipments per person per day** and **10% improvement in Global Forwarding shipments per person per month**  **[CHRW_3381897_2]** .

### Q4 2023 Earnings Call
   - **Issued Period**: Q4 2023
   - **Guided Period**: FY 2024
   - **Guidance**:
     - **Personnel Expenses**: Expected to be between **$1.4 billion to $1.5 billion**, a **0.2%** increase at the midpoint compared to 2023  **[CHRW_3371449_6]** .
     - **SG&A Expenses**: Expected to be in the range of **$575 million to $625 million**, a **0.8%** decrease at the midpoint  **[CHRW_3371449_6]** .
     - **Capital Expenditures**: Expected to be **$85 million to $95 million**  **[CHRW_3371449_7]** .
     - **Effective Tax Rate**: Expected to be in the range of **17% to 19%**  **[CHRW_3371449_7]** .

### Q3 2024 Earnings Call
   - **Issued Period**: Q3 2024
   - **Guided Period**: N/A
   - **Guidance**: The documents do not contain information about the Q3 2024 earnings call for C.H. Robinson, so the guidance metrics for that period are not available.

744aad97051a6733d2947b22b1fe6970593c0324a41d22a60778f63cfed145f1

a9b989a14dcb7dd785f3dd2ea41856b695349fd4a6eb215b564a27b4e7bf4a35

U.S.

Other locations

Total Revenue

336dfcf500cbf80b02350777888f891a0508ac6e7be85f55e215920bada04f6a

28dfc646e07db34574046b030d661d5104dd2cc5fb0b1e41d8e1ddeed78a83f2

**Annual guidance for FY 2024:**
- **Effective Tax Rate**: 18% to 20%  **[CHRW_3404750_6]** (raised from 17% to 19%  **[CHRW_3404750_5]** )  
- **Capital Expenditures**: $75 million to $85 million  **[CHRW_3404750_6]** (lowered from $85 million to $95 million  **[CHRW_3404750_5]** )  
- **Personnel Expenses**: below midpoint of $1.4 billion to $1.5 billion  **[CHRW_3404750_6]** (no change from prior guidance  **[CHRW_3404750_5]** )  
- **SG&A Expenses**: toward the low end of $575 million to $625 million  **[CHRW_3404750_6]** (no change from prior guidance  **[CHRW_3404750_5]** )  
- **Depreciation and Amortization**: $90 million to $100 million  **[CHRW_3404750_6]** (no change from prior guidance  **[CHRW_3404750_5]** )  

9eaf8c40dbcc23f3fe6ed783062aaaa80b702dfe61a16407b39ec0deeab41c18

| Name                  | Position                                      | Start Date          | Short Bio                                                                                                                                                                                                 |
|-----------------------|-----------------------------------------------|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| David P. Bozeman      | President and Chief Executive Officer         | June 26, 2023       | David P. Bozeman was appointed as the President and CEO of C.H. Robinson on June 26, 2023. He has over 30 years of experience in global supply chain and logistics management, previously working at Ford and Amazon  **[0001043277-24-000011_chrw-20231231.htm:22]** **[0001043277-24-000013_chrw-20240325.htm:16]** **[0001043277-24-000013_chrw-20240325.htm:56]** .                  |
| Ben G. Campbell       | Chief Legal Officer and Secretary             | January 2015        | Ben G. Campbell was named Chief Legal Officer and Secretary in January 2015. He joined C.H. Robinson in 2004 and has held various roles, including Vice President, General Counsel, and Secretary  **[0001043277-24-000011_chrw-20231231.htm:22]** **[0001043277-23-000005_chrw-20221231.htm:22]** .                                       |
| Michael Castagnetto   | President of North American Surface Transportation (NAST) | February 1, 2024   | Michael Castagnetto will become President of NAST on February 1, 2024. He has been with C.H. Robinson since 2005 and has held various roles, including Vice President of Customer Success and Robinson Fresh President  **[0001043277-24-000011_chrw-20231231.htm:22]** **[0001043277-24-000013_chrw-20240325.htm:56]** .                  |
| Angela K. Freeman     | Chief Human Resources and ESG Officer         | January 2015 (CHRO), October 2019 (ESG) | Angela K. Freeman was named Chief Human Resources Officer in January 2015 and ESG Officer in October 2019. She joined C.H. Robinson in 1998 and has held various leadership roles  **[0001043277-24-000011_chrw-20231231.htm:22]** **[0001043277-23-000005_chrw-20221231.htm:22]** .                                                      |
| Arun Rajan            | Chief Strategy and Innovation Officer         | N/A                 | Arun Rajan joined C.H. Robinson as Chief Product Officer in September 2021, became Chief Operating Officer in October 2022, and recently transitioned to Chief Strategy and Innovation Officer  **[0001043277-24-000011_chrw-20231231.htm:23]** **[CHRW_3395347_3]** **[CHRW_3395347_4]** .                                       |
| Michael J. Short      | President of Global Freight Forwarding        | May 2015            | Michael J. Short was named President of Global Freight Forwarding in May 2015. He joined C.H. Robinson through the acquisition of Phoenix International in November 2012  **[0001043277-24-000011_chrw-20231231.htm:23]** **[0001043277-23-000005_chrw-20221231.htm:23]** .                                                               |
| Michael P. Zechmeister| Chief Financial Officer                       | September 2019      | Michael P. Zechmeister was named CFO in September 2019. He has over three decades of finance experience and plans to retire upon the appointment of his successor or no later than May 31, 2024  **[0001043277-24-000011_chrw-20231231.htm:23]** **[0001043277-24-000011_chrw-20231231.htm:22]** .                                        |
| Damon J. Lee          | Chief Financial Officer                       | August 2, 2024      | Damon J. Lee became CFO after the filing of the Q2 2024 Form 10-Q on August 2, 2024. His employment offer letter was executed on June 4, 2024  **[0001043277-24-000042_chrw-20240630.htm:52]** .                                                                                              |

b9aa0209da5fc063da64ad78263f45873f720f3d6a4299b058774f461f4e5ac1

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | December 2021  **[0001043277-24-000051_chrw-20240930.htm:51]**  |
| End Date/Duration        | N/A             |
| Total additional amount  | 20,000,000 shares  **[0001043277-24-000051_chrw-20240930.htm:51]**  |
| Remaining authorization amount | 6,763,445 shares (as of 2024-12-21)  **[0001043277-24-000051_chrw-20240930.htm:51]**  |
| Details                  | The program allows repurchase of shares in the open market or through privately negotiated transactions.  **[0001043277-24-000051_chrw-20240930.htm:51]**  |

0bf9e64c1f033f9e716b85b13c456eb75b04230e017c45874309a1c95a1e2e79

3d748067478d2ca2754bee27f1ec125511ed6d3cefb3bc558e0a6a93102343c8

| Name                  | Start Date | End Date | Reason for Change |
|-----------------------|------------|----------|-------------------|
| Deloitte & Touche LLP | 2002  **[0001043277-24-000011_chrw-20231231.htm:68]**    | Present  | Current auditor   |

0efb607107e46d6dc242c9c2dbec2b3467f8e025304971ef433213007fee6eb5

a4d82c4ce3059b51fabe1cf1e437619da1128adf53ef1c2b758abed3e22de5b3

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476eabd52ebab3ca0ca5976f5ef3f2a3ae5601e16b0bd56cf041e2f120cce1c2

- Total Revenue: $4,184.8 million (−1% YoY vs. $4,221.8 million  **[0001043277-24-000011_chrw-20231231.htm:93]** **[0001043277-24-000011_chrw-20231231.htm:95]** )  
- NAST: $2,802.7 million (**−7% YoY** vs. $3,000.63 million  **[0001043277-24-000011_chrw-20231231.htm:93]** **[0001043277-24-000011_chrw-20231231.htm:95]** )  
- Global Forwarding: $884 million (**+25% YoY** vs. $708.77 million  **[0001043277-24-000011_chrw-20231231.htm:93]** **[0001043277-24-000011_chrw-20231231.htm:95]** )  

c3c9e9c6a0e56d8afbd2ef28682cac0a46a79db41bcb160e0d4ece6f10366044

- **C.H. Robinson sees significant growth potential in their small and medium business (SMB) segment and cross-selling opportunities between their North American Surface Transportation (NAST) and Global Forwarding divisions. Management indicates they are in the "early innings" of these growth areas, suggesting substantial runway ahead.**  **[CHRW_3413616_11]**
- **The company is introducing innovative solutions like C.H. Robinson Financial, a digital payment solution for carriers aimed at setting a new industry standard in speed and efficiency, which could enhance their competitive advantage and foster financial stability for carriers.**  **[CHRW_3413616_4]**
- **Despite a challenging market, C.H. Robinson delivered significant year-over-year improvement in operating income in Q4, driven by a 10.7% increase in adjusted gross profit (AGP) and cost reductions through operational discipline and productivity initiatives, resulting in higher operating leverage.**  **[CHRW_3413616_6]**

01d79dbeca48a5371c8d238bbd8821d3433406c46beb70044ee8598debc08ae0

- **Prolonged Freight Recession and Uncertain Demand Recovery**: C.H. Robinson executives acknowledge that the market continues to be in a prolonged freight recession, with the **Cass Freight Shipment Index in Q4 down 3.2% year-over-year and down 4.8% sequentially—it was the lowest Q4 read in the industry in the last 15 years**. Additionally, they are **not seeing an uptick yet in overall demand moving into Q1**, indicating that demand recovery is uncertain.  **[CHRW_3413616_3]** ,  **[CHRW_3413616_11]**
- **Decline in Truckload Volume and Market Share Risks**: The company's **total NAST volume declined approximately 1% year-over-year**, with **truckload volumes down 6.5%**. By focusing on profitability over volume, there is a risk that C.H. Robinson may not be able to quickly regain market share when market conditions improve.  **[CHRW_3413616_3]** ,  **[CHRW_3413616_8]**
- **Uncertainty in Global Forwarding Segment Due to Middle East Developments**: Developments in the Middle East have disrupted the Red Sea/Suez route. **Carriers won't immediately return to the Red Sea**, and **it will take time for that to return to levels of normalcy**, potentially delaying recovery in the Global Forwarding segment's adjusted gross profit per shipment.  **[CHRW_3413616_17]**

97c6cf1f2035d1cf5aa86796b3210f5f2b601ccf55e16d9b8203ed9f077df34d

1. **Truckload Volume Growth in 2025**  
   **Q:** Thoughts on truckload volume growth in '25?  
   **A:** Management is cautious about predicting truckload volume growth for 2025 due to market uncertainties. They emphasize a disciplined approach to selecting the right volume in the current market and express confidence that when the market inflects, they have the **tools and talent to maximize the impact** of that inflection.  **[CHRW_3413616_12]** 

2. **Balancing Volume Growth and Profitability**  
   **Q:** How will you balance volume growth with profitability thresholds?  
   **A:** The company focuses on maintaining operating model discipline by leveraging their **people and technology** to drive growth in key verticals and the SMB segment. They have built **optionality into their model** to be prepared for both gradual and aggressive market turns, aiming to win share while keeping profitability thresholds intact.  **[CHRW_3413616_16]** 

3. **Impact of Forwarding Rates Normalization**  
   **Q:** How will normalizing shipping rates affect the forwarding side?  
   **A:** Management has accounted for **rate normalization** in their 2026 plan, with a net **$10 million headwind** for the enterprise due to ocean rate normalization in Global Forwarding. They highlight that the Global Forwarding team **successfully decoupled headcount from volume growth** in 2024 and plan to carry those efficiencies into 2025 regardless of market conditions.  **[CHRW_3413616_14]** 

4. **Pressure on Shipping Rates from Added Capacity**  
   **Q:** Will added capacity cause further pressure on shipping rates?  
   **A:** The company's view remains unchanged; they expect ocean rates to normalize back to levels seen in the **second half of 2023**. Management does not anticipate additional pressure from capacity additions altering this outlook.  **[CHRW_3413616_15]** 

5. **Balancing Gross and Operating Margins**  
   **Q:** How are you balancing gross and operating margins now?  
   **A:** Management is prioritizing the **quality of volume**, ensuring they **price correctly**, haul the **right freight**, and meet customer service expectations to deliver **strong bottom-line results**. They are maintaining discipline in a competitive market and are prepared for potential recovery in demand.  **[CHRW_3413616_8]** 

6. **Demand Indications and Bid Season Outlook**  
   **Q:** Any signs of demand changes and bid season trends?  
   **A:** In Q4, the market remained **competitive** with high adherence to route guides and no significant uptick in overall demand. The company feels good about their **contractual business** and strategy entering the heavy RFP season in Q1 but notes they are **not yet seeing increased demand** in RFPs.  **[CHRW_3413616_11]** 

7. **Growth in Enterprise, SMB, and Cross-Selling**  
   **Q:** How much growth opportunity remains in enterprise, SMB, and cross-selling?  
   **A:** Management believes they are in the **early innings** for growth across enterprise and SMB markets, with significant **runway to expand** and offer more services to customers. They see **tremendous opportunity** in cross-selling between segments and are committed to maximizing the value of their divisions.  **[CHRW_3413616_10]** 

8. **Impact of Middle East Developments on Forwarding**  
   **Q:** How do developments in the Middle East affect forwarding?  
   **A:** The situation with the Red Sea is **ongoing**, and carriers are evaluating their operations. Management does not expect an immediate return to normal routes through the **Suez Canal** and anticipates that a return to normalcy will **take time**, monitoring the situation closely.  **[CHRW_3413616_17]** 

06484aae65a31a50a390f41c7851ab0395758645074231055d8bef0333361d52

CHRW overcame freight recession headwinds in Q4, delivering a 10.7% YoY jump in adjusted gross profit and higher operating income. Management sees “early innings” for SMB and cross-selling, offering substantial runway—despite truckload volumes down 6.5%.

d991f16219d14311f8038cb48fce1eaca07b4fe0352599d421f7d2f89a1f1ce9

c1478982b3c8fe98f227bff38038545613088c43aaf1730ab427ed2c5b740ef9

**Annual guidance for FY 2025:**  
- **Effective Tax Rate**: 18% to 20%  **[CHRW_3413616_6]**  (no change from prior guidance of 18% to 20%  **[CHRW_3404750_6]** )  
- **Capital Expenditures**: $75 million to $85 million  **[CHRW_3413616_6]**  (no change from prior guidance of $75 million to $85 million  **[CHRW_3404750_6]** )  
- **SG&A Expenses**: $575 million to $625 million  **[CHRW_3413616_6]**  (no change from prior guidance of $575 million to $625 million  **[CHRW_3404750_5]** )  
- **Depreciation & Amortization**: $95 million to $105 million  **[CHRW_3413616_6]**  (raised from $90 million to $100 million  **[CHRW_3404750_5]** )  
- **Personnel Expenses**: $1.375 billion to $1.475 billion  **[CHRW_3413616_6]**  (lowered from $1.4 billion to $1.5 billion  **[CHRW_3404750_5]** )  

17ee2835ad2374bda55340f356649fbb066ef036c22c6421fb48d63c4c6b7295

74ed0ba387e95e66f0645e45524c27f98553f2c2246fa68d0bd0832e4b178a48

| Year  | Amount Due (in millions) | Debt Type                       | Interest Rate | % of Total Debt |
|-------|--------------------------|---------------------------------|---------------|-----------------|
| 2025  | 489.729                  | Receivables Securitization Facility | 5.75% **[0001043277-24-000051_chrw-20240930.htm:9]** | 31.4% = (489.729M / 1561.356M) * 100 **[0001043277-24-000051_chrw-20240930.htm:9]** **[0001043277-24-000051_chrw-20240930.htm:44]** |
| 2027  | 150.000                  | Revolving Credit Facility       | 6.08% **[0001043277-24-000051_chrw-20240930.htm:9]** | 9.6% = (150.000M / 1561.356M) * 100 **[0001043277-24-000051_chrw-20240930.htm:9]** **[0001043277-24-000051_chrw-20240930.htm:44]** |
| 2028  | 596.627                  | Senior Notes                    | 4.20% **[0001043277-24-000051_chrw-20240930.htm:9]** | 38.2% = (596.627M / 1561.356M) * 100 **[0001043277-24-000051_chrw-20240930.htm:9]** **[0001043277-24-000051_chrw-20240930.htm:44]** |
| 2028  | 150.000                  | Senior Notes, Series B          | 4.26% **[0001043277-24-000051_chrw-20240930.htm:9]** | 9.6% = (150.000M / 1561.356M) * 100 **[0001043277-24-000051_chrw-20240930.htm:9]** **[0001043277-24-000051_chrw-20240930.htm:44]** |
| 2033  | 175.000                  | Senior Notes, Series C          | 4.60% **[0001043277-24-000051_chrw-20240930.htm:9]** | 11.2% = (175.000M / 1561.356M) * 100 **[0001043277-24-000051_chrw-20240930.htm:9]** **[0001043277-24-000051_chrw-20240930.htm:44]** |

8364a6cf1485faff0264fcec60bd7fe2f2b9c8e9cf02849791f5fb8ad473ee80

Average employee headcount for Global Forwarding (headcount)

Volume of ocean services for Global Forwarding (percent)

Volume of air services for Global Forwarding (percent)

Volume of customs services for Global Forwarding (percent)

Average employee headcount for NAST (headcount)

Volume of truckload services for NAST (percent)

Volume of LTL services for NAST (percent)

Average truckload linehaul rate per mile charged to our customers (excluding fuel) (percent)

Average truckload linehaul cost per mile (excluding fuel) (percent)

67d6124620c1178772efa3bb7e57f804f7650e904df367a4afe81b97d2026cfc

- **C.H. Robinson achieved significant productivity improvements in 2023, with a 17% increase in NAST shipments per person per day and a 20% increase in Global Forwarding shipments per person per month, and plans to continue this momentum into 2024 with expected additional improvements of 15% in NAST and 10% in Global Forwarding.**  **[CHRW_3371449_13]**
- **The company continues to invest in technology and initiatives during the market downturn, positioning itself to emerge stronger when the market rebounds.**  **[CHRW_3371449_12]**
- **C.H. Robinson is enhancing synergies across its core services—truckload, LTL, ocean, and air—to increase cross-selling opportunities and capture more wallet share from customers, with half of their customers already using both NAST and Global Forwarding services.**  **[CHRW_3371449_16]** ,  **[CHRW_3371449_15]**

2c94217d9228aed49437bee8684e52ac30c5df01a44a1c24c0dd8d395bb84948

- **Prolonged Weak Market Conditions Expected to Continue Until Late 2024:** The company anticipates that the freight market will remain weak with poor demand and excess capacity, with no significant upturn until the **back half of the year**. This prolonged market trough could lead to continued pressure on volumes and margins.  **[CHRW_3371449_17]**
- **Operating Expenses Expected to Remain Flat Despite Productivity Improvements:** Despite achieving significant productivity improvements, the company expects **2024 operating expenses to be roughly flat year-over-year** due to the **restoration of incentive compensation** and **normal inflation**. This may limit margin expansion in a weak market environment.  **[CHRW_3371449_13]**
- **Competitive Market Leading to Pricing Pressure and Margin Squeeze:** C.H. Robinson is operating in a **very competitive and stressed market**, with **low pricing and low costs**. The company's opportunistic shift towards the **spot market** exposes it to potentially more volatile and lower-margin business, which could further squeeze margins.  **[CHRW_3371449_10]**

467c5792439c69e323c8bbf8becd636332da46aab3a3a25785a527db23f81bb5

1. **NAST Margin Outlook**  
   **Q:** Can NAST achieve its long-term operating margin targets despite the tough market?  
   **A:** Yes, management believes that the North America Surface Transportation (NAST) business can achieve long-term operating margins of **40%**. Despite acknowledging the current tough freight market, they are confident in their strategies and actions to reach these targets over time. They also maintain a **30%** operating margin target for Global Forwarding. Management feels good about these goals and is preparing for market changes when they come.  **[CHRW_3395347_10]** 

2. **AGP Margin Improvement Sustainability**  
   **Q:** Can AGP margins continue to improve without a market tailwind?  
   **A:** Management is optimistic that AGP margins can continue to improve based on their initiatives, even in a volatile market. They credit the leverage of tools related to dynamic pricing and costing, as well as disciplined operating models. The team is making more deliberate and informed decisions on the freight they pursue, responding quicker to customers, and effectively meeting dynamic market conditions.  **[CHRW_3395347_9]** 

3. **Competitive Dynamics and Carrier Exits**  
   **Q:** Are customer behaviors changing due to smaller competitors facing financial strain?  
   **A:** While there has been some acceleration of carrier exits in Q2, it hasn't materially impacted the market. Customers focused on long-term supply chain solutions are inquiring about market predictions and setting up healthy route guides for when the market returns. In the short term, customers remain aggressive, challenging the company with aggressive pricing in short-term RFPs and transactional spaces.  **[CHRW_3395347_9]** 

4. **Operating Model and Productivity**  
   **Q:** Is the improvement in June net revenue a sign of future growth?  
   **A:** The significant improvement in June, with AGP per day up **15%**, is attributed to the operating model maturing, seasonal elements like produce strength in southern U.S., and easier year-over-year comparisons. However, management advises caution in extrapolating this growth forward, as no definitive market inflection has been observed. They continue to focus on operating model disciplines and technological advancements.  **[CHRW_3395347_11]** 

5. **Headcount and Decoupling from Volume Growth**  
   **Q:** Have you decoupled headcount from volume growth?  
   **A:** Yes, through productivity initiatives and technological investments, the company has achieved a **10%** year-over-year reduction in headcount while handling increased volumes. Management is confident in their ability to continue improving operational effectiveness, allowing employees to focus on value-added tasks without needing to increase headcount proportionally with volume growth.  **[CHRW_3395347_14]** 

6. **Incentive Compensation Structure Changes**  
   **Q:** Has the incentive compensation structure changed under the new model?  
   **A:** Yes, the incentive compensation structure has been modified to align with the operational disciplines of the new operating model. Management feels good about how incentives are now structured to support key themes of growing market share and expanding margins. They plan to continue tweaking the system to ensure alignment with their efficiency objectives, regardless of market conditions.  **[CHRW_3395347_15]** 

7. **Portfolio Adjustments**  
   **Q:** Is there an appetite for exploring strategic sales of other businesses?  
   **A:** Management is always reviewing the portfolio but currently feels good about focusing on their four core modes: **truckload, LTL, ocean, and air**. The recent sale of the European Surface Transportation business was a step to drive focus. They are committed to these core areas and will continue to evaluate opportunities that align with their strategic objectives.  **[CHRW_3395347_17]** 

f1d0c76bf7f1b5ff8d9395c95fe29e080a8af1c41cc5dee822490e65a76dd3a1

1. **Market Outlook**  
   **Q:** When will the freight market turn?  
   **A:** The market is still soft with no signs of a near-term inflection; a **demand increase** is needed for recovery.  **[CHRW_3404750_10]** 

2. **NAST Margin Outlook**  
   **Q:** Expectations for NAST margins in Q4 and 2025?  
   **A:** We're proud of our team's discipline and expect continued improvement, aiming for a combined **30% productivity increase** over two years, though growth may slow.  **[CHRW_3404750_8]** 

3. **Impact of Market Inflection**  
   **Q:** Will we get squeezed when the market turns?  
   **A:** Any market change will squeeze margins, but we're better prepared with intelligent pricing and expect to navigate it more effectively than in the past.  **[CHRW_3404750_14]** 

4. **Strategy Amid Weak Demand**  
   **Q:** What's your plan if demand remains weak?  
   **A:** We'll control what we can, leveraging our operating model and strong pricing discipline to deliver results and pursue growth opportunities.  **[CHRW_3404750_20]** 

5. **Sustainability of Productivity Gains**  
   **Q:** Can you keep improving productivity without market help?  
   **A:** Yes; despite significant progress, there's still opportunity, especially with new technologies like **Gen AI** driving further improvements into 2025.  **[CHRW_3404750_9]** 

6. **Competitive Dynamics**  
   **Q:** How will industry consolidation affect you?  
   **A:** We're focused on controlling what we can; we're not seeing competitive disadvantages and feel confident competing, even as some shift towards asset-based carriers occurs.  **[CHRW_3404750_18]** 

7. **Headcount and Costs**  
   **Q:** Are personnel costs rising due to higher comp per head?  
   **A:** No; the increase is due to variable compensation tied to better results, while we continue to **decouple headcount from volume**.  **[CHRW_3404750_15]** 

   **Q:** Have you reached equilibrium in resources?  
   **A:** We expect ongoing productivity improvements and may not have hit a floor on headcount yet.  **[CHRW_3404750_17]** 

8. **Algorithmic Pricing**  
   **Q:** How does algorithmic pricing affect margins?  
   **A:** Our algorithmic pricing aligns with revenue goals, offering greater opportunity in market pricing while maintaining disciplined revenue management.  **[CHRW_3404750_19]** 

9. **Operating Model Readiness**  
   **Q:** Can you adjust quickly to spot rate changes?  
   **A:** Yes; our new operating model enhances speed and capabilities, but we're not yet seeing signs of a market inflection.  **[CHRW_3404750_13]** 

10. **Revenue Normalization**  
    **Q:** How much revenue was pulled forward in Q3?  
    **A:** Pull-forward impact was **not material**; Q4 is typically seasonally weaker, and we don't expect it to match Q2 levels.  **[CHRW_3404750_11]** **[CHRW_3404750_12]** 

3f0fc343b9e6508ba2daea1d4069a2b33d0ef3c9316d038e29f20a82ddeb943b

1. **New Operating Model Impact**  
   **Q:** What's changing with the new operating model?  
   **A:** The new operating model emphasizes discipline, accountability, and responsibility, driving better execution and performance. Based on Lean principles, it focuses on critical inputs rather than outputs, allowing for faster problem-solving and aggressive focus. This approach links divisional scorecards to enterprise goals, connecting the entire company. While it's still early, behaviors are changing, and there's momentum towards a more disciplined and focused organization.  **[CHRW_3381897_8]** 

2. **Net Revenue Inflection**  
   **Q:** What's driving the net revenue inflection in March?  
   **A:** The enterprise adjusted gross profit (AGP) per day improved from **down 3%** in February to **up 7%** year-over-year in March. This improvement results from the implementation of the new operating model, which enhances execution. Investments in pricing science and technology allow for quick responses to market changes, and there's confidence in continued progress as seasonal strengths like produce and beverages contribute in Q2.  **[CHRW_3381897_8]** ,  **[CHRW_3381897_14]** ,  **[CHRW_3381897_16]** 

3. **Working Capital and Free Cash Flow**  
   **Q:** Will ocean rates continue to drain working capital, impacting free cash flow?  
   **A:** Higher ocean rates have absorbed cash due to increased costs in purchased transportation. This trend may continue if costs rise, potentially leading to negative free cash flow in the short term. However, as costs and prices stabilize or decrease, working capital trends will reverse. The company expects positive cash flows over the cycle, depending on market conditions for truckload, LTL, ocean, and air services.  **[CHRW_3381897_9]** ,  **[CHRW_3381897_10]** 

4. **Compensation Structure Changes**  
   **Q:** How has the compensation structure changed under the new model?  
   **A:** The compensation structure now balances productivity and growth, with a **50-50 split** between profitable growth and volume targets. Employees are incentivized to drive both adjusted gross profit and volume, embedding discipline and aligning with the operating model's focus on critical inputs and performance metrics.  **[CHRW_3381897_11]** 

5. **Implementation of Fast-Moving Initiatives**  
   **Q:** What has been implemented to allow faster execution?  
   **A:** After diagnosing areas for simplification, the company reduced complexity and brought in new talent to establish a project management office and deploy Lean principles. An operating model was implemented, focusing on critical inputs, visual management, and timely problem-solving. This includes scheduled meetings that link divisional activities to enterprise goals, enabling faster decision-making and execution.  **[CHRW_3381897_13]** 

6. **AGP per Day Inflection Drivers**  
   **Q:** How was the AGP per day inflection achieved?  
   **A:** The inflection resulted from disciplined execution of the operating model, active revenue management, and balancing volume with adjusted gross profit. Investments in pricing science, costing science, and technology enhanced responsiveness to market changes. Focusing on shipments per person per day, reducing manual tasks, and leveraging technology like generative AI improved productivity and efficiency.  **[CHRW_3381897_14]** 

7. **Ocean Capacity and Pricing Outlook**  
   **Q:** How will ocean capacity and pricing affect Q2 results?  
   **A:** Previous disruptions like the Red Sea issues and Panama Canal constraints have eased, with capacity being repositioned. Spot rates have declined, and the market has returned to supply and demand fundamentals. With more capacity entering the ocean market and uncertain demand, prices may remain steady or soften. The company monitors these trends closely but expects outcomes to depend on global economic conditions.  **[CHRW_3381897_15]** 

8. **Productivity Drivers and Targets**  
   **Q:** How will productivity targets be achieved—volume growth or headcount reduction?  
   **A:** Productivity targets will be met by building flexibility into the model, allowing adaptation to both demand growth and soft markets. The focus is on reducing manual tasks, enhancing technology, and enabling employees to concentrate on higher-value activities. This approach increases capacity and improves shipments per person per day without necessarily reducing headcount, aiming for smarter work execution regardless of market conditions.  **[CHRW_3381897_16]** 

9. **Competitive Landscape and Market Share**  
   **Q:** Is winning market share due to other brokers exiting or company initiatives?  
   **A:** While there is pressure in the brokerage industry and some smaller brokers are exiting, the company's success is primarily attributed to disciplined execution of the operating model. The active management of inputs and responsiveness to market dynamics have enabled outperforming the market, rather than relying on competitors' weaknesses.  **[CHRW_3381897_17]** 

10. **Brokerage Capacity Balance**  
    **Q:** Is the brokerage industry capacity closer to balance now?  
    **A:** The brokerage industry has not yet returned to the balanced levels of 2019. Although capacity is decreasing, it hasn't reached desired levels within the cycle. The company continues to monitor capacity trends but does not believe the brokerage market is balanced at this time.  **[CHRW_3381897_18]** 

d9820dd08a8a5d755f5dbbd6a904bf08a1bf03996aacd290f312839923ea5f55

- **Muted seasonality and uncertain outlook for Q3**: The company observed "muted seasonality throughout Q2" and is hesitant to provide guidance for Q3, stating it's "really hard to say how far that will head into Q3"  **[CHRW_3395347_17]** .
- **Sale of unprofitable European Surface Transportation (EST) business**: The company admitted that "we haven't proven that we could scale or be consistently profitable" in the EST segment, leading to its sale  **[CHRW_3395347_14]** .
- **No definitive inflection in the marketplace and decreasing ocean pricing**: Despite a strong performance in June, the company notes "we certainly haven't seen enough to call any definitive inflection in the marketplace" and acknowledges that "pricing has come down a little bit" on the ocean side  **[CHRW_3395347_11]** .

39d7edd2c2e13c727bffe8c85ad536f8184355084dd8751599b24cf1e8375a0e

- **Truckload profit per shipment is at an all-time low, and the company is not confident that the market has bottomed yet.**  **[CHRW_3363334_11]**
- **They are not seeing any meaningful improvement in the soft freight market, with volumes and rates lacking inflection points.**  **[CHRW_3363334_11]** **[CHRW_3363334_8]**
- **Potential margin compression in their contract business when the market rebounds, due to pricing dynamics and aggressive competition.**  **[CHRW_3363334_17]** **[CHRW_3363334_9]**

5205dda679db577ef789d9ac3b3beb87586ea9da0b153ba31a43213b9db08fbc

- **C.H. Robinson is focusing on growing market share and expanding margins**, implementing operational discipline and modifying incentive compensation to drive efficiency and prepare for market inflection.  **[CHRW_3395347_15]**
- **The company is confident in achieving long-term operating margin targets of 40% for North American Surface Transportation (NAST) and 30% for Global Forwarding (GF)**, despite a tough freight market, indicating strong potential for profitability when the market rebounds.  **[CHRW_3395347_3]**
- **They have the ability to disconnect volume growth from headcount growth**, providing flexibility and improving operating leverage throughout each part of the cycle.  **[CHRW_3395347_15]**

1a59a0f5b41091956533a44838c8d8279aa86e385df8a7f96a2eb73ef93a1a59

1. **Market Outlook and Profitability**  
   **Q:** Is this quarter's performance the trough, or will it worsen? How do productivity gains affect profitability?  
   **A:** Management finds it difficult to predict market inflection points due to volatility but expects potential improvement in the back half of the year for truckload.  **[CHRW_3371449_17]**  They are implementing productivity improvements of over **30% compounded over two years** in both NAST and Global Forwarding, but translating these gains into profitability depends on market recovery.  **[CHRW_3371449_17]** 

2. **Cost Control and Operational Leverage**  
   **Q:** Is flat OpEx guidance for 2024 sufficient without a freight rebound? What's the long-term cost outlook?  
   **A:** Despite flat year-over-year OpEx guidance, they emphasized the need to improve the cost structure.  **[CHRW_3371449_13]**  Productivity gains of **17% in NAST and 20% in Global Forwarding** were achieved in 2023, with plans for an additional **15% in NAST and 10% in Global Forwarding** in 2024, totaling over **30% compound improvements**.  **[CHRW_3371449_13]**  The company is positioning for operating leverage when the market rebounds, expected in the back half of the year.  **[CHRW_3371449_13]** 

3. **Capacity Exits and Pricing Impact**  
   **Q:** What are you seeing regarding capacity exits, and how does it affect pricing?  
   **A:** Capacity exits in truckload have been delayed but are now beginning, which hasn't significantly impacted pricing yet but is expected to.  **[CHRW_3371449_14]**  New carrier sign-ups in Q4 dropped to about **half** of the prior year's level—approximately **4,500** compared to **9,100** last year.  **[CHRW_3371449_14]**  In ocean freight, a net capacity increase is anticipated in 2024.  **[CHRW_3371449_14]** 

4. **Shift to Spot Market and Revenue Management**  
   **Q:** Why pivot more to the spot market, and how will revenue management limit future margin squeeze?  
   **A:** The pivot to the spot market is opportunistic to capture profitable demand.  **[CHRW_3371449_10]**  In a soft market with low prices and costs, they are maximizing spot market volume without triggering major repricing.  **[CHRW_3371449_10]**  Revenue management discipline will intensify with a sustained market inflection, which hasn't occurred yet.  **[CHRW_3371449_10]** 

5. **Competitive Pricing Environment**  
   **Q:** Are competitors' struggles creating a volatile pricing environment?  
   **A:** While the market is stressed and some competitors are under pressure, C.H. Robinson continues to invest in projects to enhance its position.  **[CHRW_3371449_12]**  This strategy aims to strengthen the company when the market turns.  **[CHRW_3371449_12]** 

6. **Focus on Core Businesses**  
   **Q:** Does focusing on the 'core 4' imply simplifying the company's structure?  
   **A:** The focus is on truckload, LTL, ocean, and air to drive growth.  **[CHRW_3371449_15]**  While other businesses support these key areas, emphasis is on maximizing these core services.  **[CHRW_3371449_15]**  They continually evaluate what's best for the company's operations and long-term strategy.  **[CHRW_3371449_15]** 

7. **Synergies Across Services**  
   **Q:** What is the opportunity to improve synergies across the portfolio?  
   **A:** Currently, **half** of customers use both NAST and Global Forwarding services.  **[CHRW_3371449_16]**  There's an opportunity to increase wallet share by offering integrated solutions for complex supply chain issues, rather than individual services.  **[CHRW_3371449_16]** 

8. **Global Forwarding Volatility**  
   **Q:** How has global forwarding market volatility impacted the business?  
   **A:** Temporary capacity disruptions, such as issues in the Red Sea and Panama Canal, have increased ocean freight pricing.  **[CHRW_3371449_11]**  This is seen as temporary, with normalization expected after Chinese New Year and additional capacity in 2024.  **[CHRW_3371449_11]**  With only **20%** of ocean business under contract (vs. **65%** in truckload), they can benefit more immediately from spot market increases.  **[CHRW_3371449_11]** 

3377d4908de6ce9fb9d1d3f40778aee01d859984cb4d90833661e7d11981cd0e

- **C.H. Robinson is experiencing pressure in the brokerage industry, with the market not yet returning to 2019 levels, indicating ongoing challenges in demand and capacity.**  **[CHRW_3381897_18]** **[CHRW_3381897_17]**
- **The company's transition to a new operating model highlights previous inefficiencies and operational issues; management acknowledges it is in the early stages, with significant work remaining, potentially impacting near-term performance.**  **[CHRW_3381897_13]** **[CHRW_3381897_8]**
- **Rising ocean freight costs are draining working capital, with the potential for negative free cash flow in the first half of the year, suggesting possible financial strain.**  **[CHRW_3381897_9]**

16fb46a1dcd5337ae4b8aade97ecc3e7a0cedf0a44d2323b30e0fba4477b2d4a

- **C.H. Robinson (CHRW) is gaining market share due to disciplined execution and a new operating model, enabling them to outperform the market for three consecutive quarters.**  **[CHRW_3381897_17]**
- **The company has improved Adjusted Gross Profit (AGP) yield by leveraging pricing science, costing science, and technology, allowing them to respond quickly to market changes and enhance profitability.**  **[CHRW_3381897_14]**
- **They are increasing productivity through technological advancements like generative AI, leading to significant improvements in shipments per person per day and creating operating leverage.**  **[CHRW_3381897_14]** **[CHRW_3381897_8]**

fb7eebc4fcb8ac9ab62bfdad7a422185af064da2745b1e3f7998f1518d11308e

- **Leveraging advanced technologies, including generative AI and automation, C.H. Robinson has achieved an 18% increase in shipments per person per day year-to-date—exceeding their 15% productivity improvement target—and expects to deliver similar improvements in subsequent years, positioning for growth without adding headcount.**  **[CHRW_3363334_18]** ,  **[CHRW_3363334_13]**
- **The company is focused on gaining both market share and maintaining margins, aiming to outperform the market by providing exceptional service and leveraging its financial strength to invest through cycles, setting it apart from competitors who may be struggling.**  **[CHRW_3363334_9]** ,  **[CHRW_3363334_16]**
- **C.H. Robinson is continuing to invest in technology and productivity initiatives without increasing technology spending, and their cost optimization efforts are ahead of targets, which will create operating leverage and improved margins as demand returns, benefiting shareholders in the long term.**  **[CHRW_3363334_11]** ,  **[CHRW_3363334_13]** ,  **[CHRW_3363334_15]**

7d9c836c02a7a0497d6fbea3536880bbedb3205d602450792d8dbdda6504980f

CH Robinson Worldwide Inc (CHRW)

Financials