C.H. Robinson is a freight middleman that books truck, rail, ocean, and air shipments for companies, plus sells fresh produce to grocery chains. Think of it as a travel agent for cargo, connecting shippers with 85,000 carriers worldwide.
Money comes from fees on freight brokerage and logistics services, with gross margins around 10% and net margins near 4%. Revenue is recurring but tied to shipping volumes, which fluctuate with the economy.
Its network of 85,000 contracted carriers and long-standing relationships with shippers create switching costs, but digital freight platforms like Uber Freight and Convoy are undercutting pricing transparency. Moat is eroding as technology lowers entry barrier
