Third-party logistics provider CH Robinson saw second quarter 2020 revenues fall 7.2% to $3.6bn in a “volatile environment” and lower pricing in trucking while airfreight revenues surged due to reduced capacity and larger shipment sizes.
Net group revenues decreased 11.6% to $614.5m as income from operations dropped 17.0% to $188.8m.
Second quarter total revenues for the global forwarding segment increased 19.5% to
$707.8m, driven primarily by higher pricing in airfreight due to reduced air cargo capacity, increased charter flights and larger shipment sizes. Net revenues increased 14.8% in the quarter to $163.0m.
Net revenues in air increased 104.4% driven by higher pricing, partially offset by a 35.5% decline in shipments. Ocean net revenues decreased 7.8%, mainly due to an 8.5% decline in volumes.
Chief executive Bob Biesterfeld said: “Despite a volatile environment, we were able to deliver solid performance across all of our business units due to the tireless efforts of the C.H. Robinson team members around the world and our diversified portfolio of logistics services.
“We also continued to make progress on our strategic, long-term initiatives around market share gains and productivity improvements.”
Biesterfeld continued: “Our business model is resilient and responsive. We have a strong balance sheet, and we exited the second quarter with $1.6bn of liquidity. We are well positioned to weather the economic uncertainty in the months ahead and emerge stronger from this difficult time.”
In his outlook, Biesterfeld spoke of uncertainty in the freight market and the broader economy.
“We'll continue to act in the best long-term interest of our shareholders by balancing short- and long-term cost reduction efforts with continued investments in technology to maximize long-term value creation.
“As the freight market and economy continue to recover, we're committed to providing best-in-class service to our customers, continuing to grow market share, driving the transformation of CH Robinson and emerging from this time of uncertainty as an even stronger company.”
