Analyst Note| Matthew Young, CFA |
Wide-moat logistics specialist C.H. Robinson’s third-quarter gross revenue swung to a 9.5% year-over-year increase, versus a 7% decline last quarter. In the flagship brokerage unit (NAST), gross revenue was up roughly 4% on better pricing and as shipment demand saw sequential improvement off pandemic lows due to the reopening economy, retailers' restocking, and spiking spot opportunities. Truckload volume was up only 0.5%, but that was much better than the 5% decline last quarter and LTL volume jumped 14%. Thanks to rapidly firming capacity, the firm also benefited from a nice uptick in pricing to shippers (particularly on spot business) as TL revenue per load jumped 10.5%. Global forwarding gross sales rose 39% due in part to robust airfreight pricing.