In the first half of 2024, C.H. Robinson reported group revenues of $8.9 billion, a decrease of 1.5% year-on-year. The company attributed this weaker performance to lower rates in the road transport segment, driven by low market demand compared to available truck capacity. Although there were increases in rates and volumes in sea and air transport, these gains were insufficient to reverse the negative revenue trend.
Gross profit also dipped slightly, down 0.8% to $1.3 billion. On the other hand, operating profit improved by 3.9% to $305.2 million, largely due to a $1 billion reduction in operating expenses.
Net profit also saw improvement compared to the first half of 2023. The company posted a net profit of $219.2 million, marking a 3.3% increase year-on-year.
The largest segment of C.H. Robinson’s operations is North American land transportation. Revenues in this division declined by 6.2% in the first half of 2024, reaching $6 billion, which significantly contributed to the overall drop in group revenues. The segment’s operating profit saw a slight decline of 0.7% to $250 million.
Forwarding sees gains
C.H. Robinson’s global forwarding segment performed much better, with revenues in the first half of 2024 increasing significantly by 13.4% year-on-year, reaching $1.78 billion. Operating profit grew even more sharply, up 21.4% to $72.5 million. The strong results were driven by higher sea transport rates. The spring saw a dynamic surge in ocean freight rates, which we covered in previous reports.
The group’s other businesses generated revenues of $1.12 billion, a 4.2% increase year-on-year. This category includes supply chain services for the retail and foodservice sectors, as well as other ground transportation services, such as European road transport, which recorded a 23.3% decline in gross profit.
Positive trends continue
As with recently analyzed European logistics operators, American companies are also showing improved results in the second quarter. Year-on-year comparisons for this quarter are more favorable than for the entire half-year. The largest segment of C.H. Robinson—North American road transport—saw a slower revenue decline (down to 2.9%). Meanwhile, operating profit in the April-June period was noticeably higher than a year earlier, rising by 19.7%.
Global forwarding also experienced accelerated growth in the second quarter, with segment revenues up 18% year-on-year and operating profit soaring by 38%.
Contract logistics thrives
Another American operator, GXO Logistics, reported revenues of $5.3 billion in the first half of the year—approximately 12% more than in the same period of the previous year. This highlights the stronger performance of contract logistics, which is GXO’s specialty, compared to transport and forwarding operations. This trend is also evident among European operators recently analyzed, where contract logistics and logistics solutions have shown the best growth.
GXO’s largest market is the UK, generating $2.2 billion in revenues. The US market followed with $1.47 billion. The Netherlands, France, Spain, and Italy rounded out the top markets. The French market was the only major market to experience a year-on-year revenue decline.
GXO’s EBITDA (earnings before interest, taxes, depreciation, and amortisation) was $341 million, slightly lower than a year earlier. However, net profit dropped significantly—while the company posted a net profit of $92 million in the first half of 2023, it was only $3 million in profit for the January-June 2024 period.
In the second quarter of this year, GXO’s revenues increased by 19% to $2.8 billion. As Malcolm Wilson, CEO of GXO, emphasised, this was a record quarterly result, although organic growth was much lower, at just 2%.
EBITDA for the second quarter stood at $187 million, nearly unchanged from a year earlier. However, net profit was down 41% year-on-year.
Wilson highlighted that GXO’s operations in Europe played a significant role in the company’s results. Recently, GXO signed a 20-year contract with Levi’s in Germany and secured a service contract with Tchibo. Additionally, GXO acquired the British logistics operator Wincanton in a transaction valued at £760 million, which significantly impacted GXO’s profit in the first half of the year.
Ambitious forecasts
GXO projects that organic revenue growth in 2024 will range between 2-5%. The group also expects EBITDA to fall between $805-835 million, compared to $741 million in 2023.
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