C.H. Robinson Global Forwarding has reported continued growth following a decade of expansion and a strong year-end performance. Since its acquisition of Phoenix International in 2012, which helped establish the division, Global Forwarding has expanded more than fourfold. Volumes have nearly tripled, and annual gross profit has grown from approximately $150 million in 2012 to $800 million by 2024.
The company's fourth-quarter results for 2024 reflect this ongoing growth trajectory. C.H. Robinson reported a 10.7% year-over-year increase in adjusted gross profit (AGP), with the Global Forwarding division contributing significantly, showing a 25.6% increase within the division. This growth was achieved without an increase in headcount, while productivity also improved by 15%. Both ocean and air shipments recorded year-over-year growth across all quarters of 2024, despite fluctuations in market conditions.
Mike Short, President of Global Forwarding at C.H. Robinson, noted that recent changes in operations and strategy have contributed to the division's strong performance. According to Short, operational adjustments, such as embracing a new operating model and focusing on disciplined execution, have been key factors in driving growth. The company has also emphasized continuous improvement, allowing for quicker responses to operational challenges.
Operational scale and expertise
Global Forwarding currently manages 6,000 ocean and air shipments daily and processes around 1.4 million customs transactions annually. The division has built expertise across various sectors, including automotive, energy, retail, and healthcare, offering solutions tailored to specific business needs. This breadth of experience allows the division to manage increasingly complex global supply chains.
Strategic regional expansion
The company has identified key regions for strategic investment, focusing on Southeast Asia and Europe in recent years. This targeted growth strategy has been supported by strong partnerships and the ability to handle supply chain challenges effectively. One recent example includes cost-saving solutions delivered through an ocean consolidation program for an automotive client in Germany. Such initiatives have contributed to organic growth and improved customer offerings in these regions.
Integration across services
C.H. Robinson's Global Forwarding division benefits from integration with the company's broader logistics services, including trucking, rail, warehousing, trade policy consulting, and 4PL services through C.H. Robinson Managed Solutions. This integrated approach allows the company to support customers from sourcing to final delivery, offering comprehensive supply chain solutions.
Navigating global supply chain disruptions
External factors such as geopolitical issues and extreme weather events continue to disrupt global supply chains. The company has emphasized its ability to support clients through these challenges by offering flexible, customer-focused solutions. This capability has contributed to the division's market presence and continued growth, even in the face of shifting market conditions.
Short acknowledged the efforts made across the organization to enhance operational efficiency and improve customer-centric solutions. The focus on strategic investment, operational excellence, and navigating market disruptions has positioned the division for sustained growth in the competitive global forwarding market.
For more information:
Kelsey Soby
C.H. Robinson
Tel: +1 855 229 6128
Email: kelsey.soby@chrobinson.com
www.chrobinson.com