C.H. Robinson Worldwide (CHRW) 27 Oct 212021 Q3 Earnings call transcript

Good afternoon, ladies and gentlemen, and welcome to the C.H. Robinson Third Quarter 2021 Conference Call. [Operator Instructions] As a reminder, this conference is being recorded Tuesday, October 26, 2021. I would now like to turn the conference over to Chuck Ives, Director of Investor Relations.

Thank you, Laura, and good afternoon, everyone.

me Officer; Bob Chief and with and our Financial call Executive Chief Mike the today Biesterfeld, is President Officer. On Zechmeister, our XXXX then Mike quarter questions. the and will a live of Bob provide call for results, will we our and open up summary third

be website presentation earnings at can investor.chrobinson.com. supplemental the Investor earnings release to Our in our section are and slides found of our

And the If slides, comments also Our will referencing. on intended we slides. do you today's not that, the call the information to may presentation we’re today our I'll contain refer are you Bob. in that prepared over any like let factors follow of we first Slide expectations. could slide know cause specific X differ to that with to our to lists to which remind would actual I turn forward-looking remarks results statements. management's from

everyone, today. you and Chuck, thank for and you, us joining good Thank afternoon,

The quarterly and this returned third is sequential the continued capacity QX quarter both our gross continue for to challenging our take accomplish steady our hold spot capacity was sustained or to we services efforts constrained progress we resulting extremely AGP be continue. platform year higher growing right to contractual our our mile X.X% which plus continues truckload year-over-year increasing on help North average direction we've through results. Demand ingrained X technology continue heading per five strategy environment. re-pricing trajectory made a powerful financial our and in navigate customers adjusted business basis. in American business, an for portfolio the to in tech our and X.X% our as and strong, tight of of percentage our and digitization progress our a the averages. of In of volume volumes execution expect an strong leverage our profit The of year exceeded to We XX while suite truckload another of quarter our in global Through AGP environment, year and the benefit to of record be business. and and truckload per in and business,

we September acceleration the truckload day and continued quarter, an the growth of of year-over-year per in in into trend business growth Within with saw volume that month X% quarter October. each has

which per million in a the For which volume driven part $XX in and or spot truckload XX% volume now increase increase This in in market dynamic year-over-year due spot increase truckload volume to Nearly is for pricing load. and or proprietary is our engine half quarter, engine, generate to was $X We our through spot of AGP contractual volume, third assurance with mix largest the of ago capacity our delivering with period. and dynamic pricing an mix transactional in consistent the approximate time pricing with year. in North of business XX% XX% real a X.X% AGP was pace quarter NAST year America. truckload integrations an year-over-year a priced capacity in on network the grew our XX% billion freight volume the closed in through by transactional included via quarter in increase the XX% XX% that

surcharges fuel last mile quarter the cost linehaul per year. truckload paid our third increased to XX% average of compared to Our carriers excluding

AGP per on decrease price haul a mile. with in rate of per year-over-year. surcharges per highest mile built resulted combined again to gross linehaul record cost and resulted XX% This the XX% excluding This XX% truckload increase average a year-over-year increase Our adjusted average a truckload. our X% and in in customers in in the fuel NAST our increased profit length

of depth of in during guide slightly we tender routing quarter. September, shipper During slight X.X in the managed guide June routing services our indicating X.X from deterioration to increased business the performance in quarter saw

Given as expect the perform truckload to we the around supply, head current constraints holiday in first of next. structural demand re-price we over to our well continued of expansion this and we capacity environment season, the remain into tight a quarter of of the stated expect and half with coupled fourth truckload quarter with to business that contractual strong in year

launched new increased an we and we and drivers record their the our recognize our effort our truck and network incredible and carrier continued quarter, new X,XXX third expand had of of engagement. led for utilization signups to extraordinary effort During technology a apps. carrier efforts to to we This carrier

was by NAST volume per at adjusted remaining the growth or in in million delivered volume in in business through resulting a order. increase remains in increase growth adjusted XX% profit e-commerce, profits the grew was Overall of LTL This year-over-year. X% a on and $XX in in gross capacity XX.X% top gross Our quarter a increase XX.X% comparable by LTL market volume a last driven demand strong, premium. year. This

resonate all in Our sizes continues multiple industry of LTL to with value shippers across proposition verticals.

low constraints business, as be is year-over-year. inland our Turning and are expanded vessel profits we be into believe some ports ocean pipeline Demand gross profit can a XXX% consecutive In from this robust operating capacity. business, our will shipments shipment. in meet to the business port continues with increase And although implement forwarding the quarter to third bottlenecks shortage drivers, or in of through our and to overall drainage quarter XX% hours, continue XXXX. increase $XXX grew market strength XXXX. This congestion other was truck what of revenues, and container likely by sales in limited and continue such new industry came strong XXX% ratios and customers to to income. business Based and warehouse growth working million the the adjusted and sixth of we operating stronger global now forwarding into space AGP continued than our inventory total adjusted capacity existing the on year-over-year in per to gross

procuring strengthening serve as modes job our needs their with carrier or ports. has plan incremental shipping ultimate of team and working well and best better relationships forwarding done our consider to shippers as customers, to to great a capacity Our

and freight ocean our adjusted Every to Finally, by Demand strong, air air million a remains increase gross growth are flight from demand partially metric both by business forwarding The gross need capacity relationships metric adjusted the also a existing they air. capacity in to freight per and tons charter increase to in profit This international access strategic ton. capacity strained driven for we profit sizes to increased freight incredibly of meet team some their position continued continued is delivered year-over-year. XX% was add of that to needs. to XX% support conversions award shift to multinational to new be leading our that have driven while and $XX commercial ensuring XX% continue that existing or customers with has new customers. customers continuing

we've supporting made and strategies in customers vertical value analytics, and that for shareholders. Our and as We well for competitive more achieved enable deliver and our Robinson sustain the digitization, advantages network business, to of our we've from these global C.H. returns the benefiting our as investments presence. win and believe expanded that's geographical our create more turn in results and gains customers data will market solid are us that that share

savings IQ Our continue the compare of bring to digital to labs innovations latest allowing quarter. introduction realizing new these see in C.H. deliver customer these and our The using customers the to by value them during are investments increased rates is information their breakdown exciting growth with customers, rate those rates win market averages. opportunities, example to we then, this when rates the brings the ways. market, new Robinson unlock transparency products. the This that from to pricing value advantage market Robinson truly And engagement our see their to and of with higher shippers of potential we

grown real connections requests, Enabling amount our efficiencies pricing that's our delivered I significantly. mentioned the win rates. digital our these improves As earlier, customers, through dynamic quote improves for time volume tools our of time response has and being improves for

platforms. with quarter with pace XXX connections users and customers add customers with across the new and connected TMS to our to of continue connections growth customer average of ERP XXXX. accelerated grow our monthly our and platforms third facing average number daily The continues also We at in carrier an via and carrier daily users XX% digital of also year-over-year

to to carrier continue and driver. new both the deliver we benefits of and Navisphere mobile carriers our versions web capabilities As and through

highlighted again our year-over-year. it mass And the in we truckload presentation. fully for relates NAST over XXX,XXX During had a in nearly metrics increase business, couple bookings of automated as finally, XX% productivity, our to of key which we've was an earnings quarter,

third year-to-date basis, impact headcount. per quarter, and to change XXX indicated digital of of difference XX% invested and year-over-year per relationship in that increased since our a between building in NAST we our in we the as which On bench our the spread improvement point continue hiring NAST by show productivity support year-over-year favorable index, productivity represents the the During growth. to of timing between beginning person another the an volume and increased the Shipments period. the the change investment over productivity, increase in are metric investments clearly productivity NAST the day NAST with the shows in

strategy market these needs making on are solutions services our turn financial aligned and that our progress overall investments I'll deliver right from the to Across to tech investments them call of for performance. shippers for information Mike the our we an of quarter carriers believe our their leading we specifics with with that global highly our encouraged give technology network that delivering our created to our markets results. our plus you the logistics and the impact help suite experts, are tailored and customers. advantage we're as our to digital We global of customers now and impacts our disrupted strategy that navigate is and combines to our these the to the one of that third and data our partners scale is the and

afternoon everyone. good and Bob Thanks

in we as of favorable delivered continue plus record financial we on results mentioned, tech our strategy. performance driven QX, by Bob to market and another As strong quarter execute

XXXX. September. per company XX% driven improved over of August XX% total profit and up up shipment air, the XX% AGP up over gross and company and the quarter AGP was XX% On sequential month pre-pandemic revenue XX%. both sequentially compared of and LTL. year, to total up XXXX, by our across basis volume last truckload adjusted in AGP improved XX% QX day Total or ocean, a and QX, was in also increased Our and XX% our AGP Increased business each per monthly quarter in AGP by July, in company was

our across each each cost American rose For costs supply demand and reaching price highs the truckload new business mile North due per with to the QX quarter of imbalance. mile fifth consecutive prices and per persisting in month

through volume which Our fifth selectively freight contractual purchase this continuing market. spot navigated environment ever growth. re-price up business, quarter approximately increasing NAST by the to portfolio XX% was QX transportation flat, reflect the volume our to spot grow marking this volume, of year-over-year we where to digit continue in double in of Within team market was the QX cost

pricing. Bob per our margin changing our now per truckload which per XX falls business, percentage, metrics AGP an than mile cycle key both As our naturally the and mentioned, year AGP rises with QX in X AGP market or load AGP mile are year rather truckload and above averages. is

For we those in contracts thirds the to greater the of margin following see typically the than margin on truckload our current or two would volume within as market percentage, with AGP month AGP cycle, we expect have the percent expansion if when XX past. loosens

by long shipment drive continue expect and into AGP enhanced dollar we term and We per across digital focus our on to overall focus AGP efficiency offerings. growth service customer growth our and model. With optimizing investments, volume to

year. to of costs turning term XX% reductions impact $XXX.X short last in expenses, to QX due compensation and were of cost to last up incentive Now related QX pandemic personnel of primarily million QX expenses the higher compared year

Our QX growth the we hired last NAST. we the market, headcount expectations X.X% compared to successfully tight labor increased year. QX average to support particularly Despite need forwarding global in talent our and

incentive of in short X.XX QX X.XX $XXX.X compared up cost range, $X.X prior expectations dollar to in of primarily personnel from to expect of expenses related profit due billion billion we headcount reductions SG&A XX% XXXX, were QX, term the QX to $X.XX for year. pandemic be billion. our XXXX to in and compensation the up from expectations is increase impact million XXXX last the to now Given of our the which expenses resulting billion additional

$XX total amortization. approximately $XX be to We $X.X million depreciation XXXX continue including to billion million to expect SG&A of expenses and approximately

versus primarily quarterly also the operating income included XX.X% revaluation. million net up currency of to record was basis million, up higher from a versus year interest Interest $XXX.X XXX to pre-pandemic million million the XXX last operations year. results impact last QX $XX.X on expense gain up QX to approximately QX year in X.X million due QX margin a quarter points $X.X adjusted million and a compared Our of $X.X and up in was QX up at basis expense our the of Quarter points balance. to currency loss compared revaluation due QX $X.X last totaled XXXX. last average other year XX% from was

rate which eclipsed year's QX last than and due the tax at our earnings came rate rate lower favorable primarily expectations tax rate on was tax mix the This QX by XX.X%, from XX.X% record, lowest QX our only U.S. second foreign was of year. Our to in incentives.

earnings QX now $XXX.X be XX% $X.XX XX% are QX was XX% year, last was compared at XX% to QX income versus up our to year and share million estimate quarterly effective to XX% year. diluted rate to prior to XX%. XXXX compared our a of We up last tax expecting record net full per

and by cash to increase million year. in $XX offset million our increase DSO double assets accounts to by DSO by Turning operations sequentially QX million with last outstanding of primarily days a increase accounts a our used XX.X% million associated resulting shift in partially flow, higher QX $XXX operations contract day and primarily up NAST the global dollars driven $XXX receivable cash the cash growth in were revenue driven assets in was used runs flow contract receivable by approximately net payable from or million total and up was approximately XX.X%. in where and $XXX sequential income. XXX while declined Sequentially, accounts business. compared In flow X.X QX, revenue and was The mix sales forwarding by XXX that total

past both accounts percentage has are to issues as While seeing our receivable two we quality have year credit compared not our balance our improved and averages. grown three losses

expenditures to caution shares of returned $XXX up to million. $XX were were our AGP year. repurchases be $XX.X a repurchasing to million of represents We growth. Over an $XX approximately $XX.X increase shareholders XXXX cash long to $XXX to expect in That return QX we in the of term, QX driven level million and versus dividends. pandemic. million XXX% we year growth to through million the last abundance not of cash in QX million shareholders when $XX out outpace last expect technology to capital working a of of of up share combination of We expenditures due $XX million from $XX Capital from QX expectation capital now million, our previous million

average of authorization X.X of this approximately the $XX.XX. of QX approximately had shares our year, from on XXXX. QX, repurchase we million X.X remaining an we share At end capacity at price repurchased May shares million During XX of million

entities operations. balance of Our end from and cash with only matures million We comprised foreign continue October of of the of ended of down XX need repatriation balance. our facility, XXX million QX million, excess million of the in goal under we cash credit was through funding our cash end of to liquidity $XXX balance carrying down $XXX QX cash compared we committed XXXX XX fund with QX which efficient our and cash to to at work QX the

X.XX was working by year, $XXX primarily debt balance at increased last and up billion QX driven versus million end purchases. capital sharing Our quarter

the leverage term and Our volume net From debt standpoint, up Overall, progress EBITDA sustainable shareholder to committed towards growth our end NAST of to growth X.XX disciplined allocation generating made to was continue credit sequentially at rating grade maintaining team capital an long times at our total we expectations. in investment our stewardship, from the truckload returns. of QX QX. a times X.XX capital be end

QX, quarters. increase for than As the per saw increase was cost the in time you in in mile in per higher percent nine the price mile first percentage

While QX our is the historically turn tech the Bob the telling inflections AGP with is future now strongest is final margins. The of his like upgraded afternoon, saw The global periods across pipeline led growth. I'll there over no globe where highest and continued earnings we headed operations on-boarding in uniform solid market new to for on for to call forwarding comments. team significant with have generate global for Thank team expanded more while customers. building you back to foundation now listening and a

exactly a believe to it operator I'll strategy Thanks Mike. here sound. believe a across navigate transportation. once live our normal, anytime or help but we everything couple soon. for market every that uniquely demand before don't how take we us to with believe labor our last. fact in when any a I environment, customers resembling succeed that to and to time prepared question Los that is continue that of I turn again strong. wrap supply having reverting positioned that in results cycle in mode no demonstrate this XXXX certainly long And our comments not Robinson Angeles see the in anchored back the also ships today, stretch this to unprecedented environment. virtually don't new model that up of adding capacity the chain to due There's while our global minutes remains constraints will believe XX we're the that around disruption begin by the is and but is reaches that of to continues going we quarter this extend But to only I will None it and working I to cycle that know Q&A. us is globe our be see the turn

referenced of people. As of plus our of on our one pillars deck, earnings three tech the strategy is our slide

to tell rely us that they around continue customers globe people teams Our that the on. our the are

been fade. and the for and join team offer were growth. the And Robinson labor of both a the we personal to because our As incredibly future today's participation environment the has navigate nine In Robinson global supply team world. size for we of to supply work I solving shareholders. this supply believe most In team XXXXs strength continue brand team to have rates results people the in the also time our this our thank model across times and support couple customers our as of certainly environment. I'm choosing experts its opportunities of companies begin the our financial stressful to are delivering in are many a to getting the XX/X, professional has help start a years they're primarily in and recognize before, to growth. And to to five People In world, to for do of people members, a hybrid how work I not is Delta for as office to capable chain people our in see begin that globe past where to back want that and chain the job, are These hopeful doing. again of we the remote that at proud complexities issues soon great low chain. continued while a of parts to today We're of XXX. challenged and I work the of to grow the variant customers fuel said more record are we able

close like reference remarks, our slide earnings I out I'd As my to six in decks. prepared

believe a following For life become more XXXX, for American American connecting services. that our as complement belief to that marketplace surface more really at industry you those position then primarily balanced for can strategically a In a be if We solution that by had decade we a future which so of in North company. we across unique bring truckload had more were us that a have we time strong ago to a And to growth the would the chains continue a portfolio that of our important for while, global. supply supply we have forming business it would been brokerage to hold will or leading in North our comprehensive chains customers, transportation globe. a global turn and business, drive known

earning forwarding believe brokerage industry that to we the that We business around Trans income. our our with and organic guess operating our we've margins that acquisition to forwarding of both delivered line operating strategic and contributed results enterprise consistent string while a prior and little in than Today, could the strong in it that represented time, trade single I business freight time, supported million technology was a offset could of help revenue. strong NVOCC the effectively, while us very XX% leading top that global east gross could creating call we're air five forwarders in platform. with profit, net core customs. less we global the in growth also one of we more that line Phoenix executed in acquisitions NVOCC execution our industry the create and number at time, deliver shareholders. other top we've Navisphere adjusted also we made At if by we've Pacific growth model a a net $XXX entire truckload the driven some Since and cyclicality and space, bound to of International revenue the in ocean And of

our side And past and of of XX% looking represents tailwinds the we of forwarding allowed million that left now AGP in trailing $XXX month operating company on to an total basis in over deliver for a AGP marketplace XX the operating forwarding favorable while and XX% us we million AGP global $XXX XX%. growth of Global consider income. along Our the to strategy where in share growth NAST we this both achieved as we'll technology bit. again Within points quarter. and stated a profitable this we've company pursue multiple Volumes within in evolution advances little extensively spoken that proof market outcomes. NAST of we which to year-over-year continue our our led successful We've about and to our a business, sequentially. business over investments successful slide, more process execution our at driving transition technology the see you with and the in can has quarter, margin in digitally of delivered here increased are

for LTL is pace we supply these business be serve an disruption, problem and freight this customers time model continue or And chain neither healthy to solution standalone NAST end during In across that solution. globe accelerate. our of Our positioned today customers. environment to the span beyond success alone a of to supply the for solutions continues of disruption facing, to are customers for modes. does to business customers all and evolution solve looking An today's ocean doesn't chain that orchestrate global the truckload uniquely and are

we just in continue So believed we to today. XXXX, believe as

the that to by Our services people, billion the in matters. we our by under I'm suite the ability advantage deliver leading technology, due information of to future. going $XX that it's drive management scale great freight a that's an to confident to growth fueled supported in continue unmatched global and industry And have on

invested this business non-asset delivers that of diversified Going based to on leverage the model returns we're forward, going capital. to strength strong continue

modes our gains course we'll all align the improve drive to expectations of invest of pursuing share strategy our our continue and drive stay growth suite customers to market the services. that with of across carriers, our and service and to into global to innovation, back with business will We and profitability

comments. our prepared the live for I'll this And with that, it portion Laura of to the back So concludes turn call. Q&A

with [Operator first Instructions] from you. Thomas question comes Wadewitz of Your UBS. one Thank

with You may question. proceed your

don't Yes, traction you're great is particular forwarding it What seems doing on my like with But guess, on in a in or on afternoon. technology I well not in terms the of you're that, NAST, results it question and a little of there's of, that's the profitability good growth as revenue income. and know stats I advantage the net operating it's taking mean, translating I how of guess, well. well. and mismatch in or that. and But NAST how it's give technology it just terms kind congratulations growth necessarily good seems on doing seems lot if flowing really I how like market you between of in getting through and like

if on any thoughts you to in just and you. relationship Thank NAST So have market? brokerage the maybe in that relative strong that

play there. to operating we've the really maybe things feel good margins Tom. NAST delivered two the question, of enterprise tend Sure. Thanks the are highest Specific closing here and fact my I that the the at sum for we that parts just there I about at XXXX. guess we that the delivered reiterate look since comments third we to and there's of pretty quarter

is prior that that technology or that to increased some capitalized first goes with we've in benefits gained. investment the whether comes it's The the expense the investment and of that

to of I and fully harnessed those the the journey because When we're is to engine lot impacts taking the our from carrier XX% couple friction years friction year-over-year. and We a out we really, of and connectivity about adoption, into continuing haven't me internally business the of partners. drive with and investments So and talked increased a to about of connectivity this is transactions a some great eliminates us transactional drive better up example outcomes. it level these to our thing greater driving being the that efficiency. That's allows think from pricing us both

the is our truckload still in the on higher margins area operating business. is today negative that level The loads second weighing of

you like margins on so just that in very XXX those improve pretty we've averages, historical more NAST. experienced we and would million you While about if that about you what $XX out basis and negative one netted the looked was see consistent that basis not from operating out past QX into points they QX a year-over-year But by variable. or net can in loads look similar to

coming to that way acceleration that point an about look spot at the reasonable some just Is it? forward? like, the there's wrong that think you on loads the at technology? traction to it accelerates and you Or is think the Do talk when looking

that shipments a between a I right talk basis when believe show real we're I person mean would seeing per points an headcount growth the volume about day. some that's XX% of in increase now. when accelerant acceleration we spread XXX and per I

consistently point of there we're to gaining. “digital total of the a arguably that's productivity any guess think proof bookings terms upstarts” in have of automated likely talked that I venture automated we number something their exceeds that XXX,XXX a important volume is the I we've load an the The for about of that bookings in quarter. quarter and would

from do progress biggest factors on investment settle. negative past the drag negative The and think has we truckload technology continue a and we of on margins that to those markets I things making loads of few so gaining the as two weigh been operating And on narrowing quarters value anticipate to better that biggest scope in the as technology relative well as are here. the those that goes increased loads time as

take loads accordingly kind those going this certain eliminate I in of of we'll that this and about settle contracts per directions really and QX prices, re-price A, of AGP a re-price that's the case, then different a see and shipment. should of QX net per market half you current markets, in year, we couple we elevated at status, will base truckload revenue negative down so of and if the at some We and if will our tight maintain scenario

to that the don't that same see The we're I cool we margin down in the rate that potentially to couple model. you other side have is terms that of quarters anticipate cost of that continue starts at going increases in see purchase to year-on-year of expansion market the and past over transportation. of

Our next from Alliger question with of line Goldman Jordan comes Sachs. the

with proceed may You your question.

questions spin forwarding on course just the continues taking the quite Just freight to of do equation, well, side obviously of there's which curious sustainability. a on and

the between market of long in that gains? sort on could chain platform sort if of supply down you level things operating it potentially more thoughts of your segment, talk die these outside just how if then and back margin so linger maybe of pre-COVID So not importantly, curious are even drive terms customers Thanks. profitability? the levels does whether that you tightness new do to level once that trends tightness, in And the you new could earlier, base dropping down, share and die a type gaining to feel at we're be

the pre-pandemic we Yes, demonstrated see that I us the profitability level XXXX/XXXX going pre-COVID, to of levels. back called base don't

their I over done the in such lot We've cost a the deliver can importing in structure operating lot done think engineer that margins a business. target operating improved we've has margins team way that time. XX% to we a of cited

that ports that supply margins But select delivering some node excess it of an ports, the isn't late overall side certainly that while of around cycle where won't guidance alone shown one forecast we've our in well around is lot a operating but point. updated that. keeping this haven't as this. the I to of forwarding doing one the solve We But and we've to going conversation important how, is for that it's open of capability there not got on is XX/X chain, or try the ends. within here when been

really so which a it's port rail I backups. labor challenge shortage, domestically supply driving chain. but mean, these of driver labor shortage, permeates out labor labor I shortage, yard warehouse potentially a throughout certainly and think truck and labor with causes issue have globally, shortage. entire that And many fluidity the real And we participation,

what develop. for I is of every this center that single that in do to node, And be solves it's the believe Jordan, going sits slow so I to magic labor bullet but because that virtually speak, don't so the to at know

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believe to prognosticate So but and again I do when won't it's this quite ends for to how extend some try that I time. going

of with line Stephens. the question next Jack comes from Atkins Our

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Thank you for taking my question.

can historically Bob, automated Are curious that's automated of represents? procurement the to to to system. that is the it's the slides way can do seems kind Just around One, talk it truckload what really XXX,XXX accelerate those been of because see you're you maybe an think really secondly you that there reference you starting communications labor shipments where bookings with capacity your So opportunity if automation there intensive. fairly at like quarter. can the the fairly like a feel breakthroughs going fully within to I fully And in really, bookings the guess, been see that carrier I a I you that guess it's and to you around percentage back quantify accelerate technology allow in point sort the partners? that kind of of about bottleneck your

I Yes, that. I and it's the percentage of right the would just the a it of into comment hockey right basis into up on but sequentially, year-on-year And good, and grow up good of total, on kind a right, kind think to note unless expense. chart the continues the quantify won't I stick

the is that we today captured we've on I that the way this low think journey I think I sit quantify hanging where would fruit.

think and adopters carrier captured early the I the community. we've

strong adoption those where automation of this procurement say, critical, I right? of interact booking things terms how to a related This in every deliver of would a the carriers six some captured of looking automated and us of want mobile to down step next carrier with greater I pipe process. period. want This think about that to I we've for to the in naturally that say trying lot just out results over APIs. there of is they friction are And out Jack, our and us with way. more us isn't application, coming are organization a all and that drive fully time really-really nine meeting to that that months interact would

Our next question of from [Indiscernible]. comes the line

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to thrown fantastic Good to of here I the growth. doing your evening, side a and the business great forwarding up some revenue stick clearly partner gentlemen, job want

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to we are think this so And about. of strongly we trajectory the feel is dictate robust. pipeline market going that growth that business some macro Again for the conditions really but

do think scenarios clear, the revenue grow where the be can to your So year. you are you of in back there half

last on second deliver Jason, some can off and and results of of we of after growth there's and grow grow said of top XXXX. really comps. quarter way all no rate that strong to here difficult we XXX% did, the we And we year, continue airfreight strong revenue QX sat really in

growth growth, sit deliver we think business. continue realistic to we today to can in where and the can on we based so that quarter, looking expect into that deliver it's we And

comes Markets. Our Fowler a Capital from next Todd of line with KeyBanc question

your with question. proceed may You

evening. nine. and slide Bob Thanks on to good I wanted ask

in when of your that comment would you've contract spot you exceeded in to the why forward just that sale cost rate done This isn't we've that which got and the this in the you're a bit because seeing model. going pointed think renewals our out, was the talk hire. that we've chart is on a been as little this quarters work ability some greater here environment made Mike we the the is in I market? Is you this higher that pass for reason and year? you re-pricing this good this through side. a I Can nine first time mean, think about as what of be rates just AGP sustained typically And this curve your

at hire have in of right actual and to if look you actual you look by mile It's, our dollars that pricing, billing see terms mile started that out cost within per at the Yes. business the per sequentially week, customer dollars we're that we we're it flattened and week paying. of

take today their XX strategic lost important within you the there And have quarter for that fourth activities their contractual increases with of third there that we're the see experiencing an much the decrease. for also And at the profound have to do customers opportunities we've are within spot re-price customers are we delivered we've really flattening volatility yes market, or not of based but in level. loads, there We've the contractual quarter. game our we've re-pricing us to things a of that and these portfolio higher We that the our loads been so tell change and they're know that them we XX% maybe can with the that customers, we in us in done of so taken on out week kind on long the I XX% and to week continued the years, portfolio. the opportunity business selective

the in fourth we out have that some might would in that we drive losses four in say to the go for losses quarter But should for implication short to in aggressive very the forward and and been whack a believe And order those really quarter negative so have next those quarters. moving us the third term.

we game And long to customers. continue those so the take with

And see can have market rate we continuing I think a of in get so that trend this expect to this opportunity. we change And I do in that in the cost. and type difference year-over-year if

tonight. makes Thanks the That sense. for time

of Christian Our next Citi. question with Wetherbee line comes from

your question. with You proceed may

heads based it little Maybe to I'm just on get in that guessing there's bit that how on when think there per sense doing compare more are operating a sense get a expenses the just think have business and would term get I I to what you're maybe little that because to going basis, actually up a sense, adjusted step expected I bottom averages. incentive that to to be growing leverage you a a look It a it in line second income about the want want does third quarter. there? NAST slower bit that's favorable. of in getting than on probably quarter relationship the but profit load a I zero dropping volumes nice with know, was And that operating of But gross how at quarter, to? comps some to I the you're per the to from an want get forward load

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with may You proceed your question.

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taking for thanks my Yes, questions.

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from question next Our with comes of line Barclays. David Zazula

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Hoexter comes of question with America. Ken Bank next on Our

question. with your You may proceed

see smaller that Bob, side equation collapsed. X swapping air so to the ocean differentials maybe that, it's between ocean much to times. looks XX or given XX more about? on of talked starting It have you gap and maybe that the I the rates on from one, you Is is scaling like brokerage? want just get One the that to on into just the to the guess actually scaled understand, the questions. you're bringing are sell that a but rate words, that is times share two airside on rates side, other job I small targeted maybe digital In and scaling spending, terms looking is CapEx in regain then the just the to a gains on that of quarter market take is ocean to

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number different a that in parts to of business. of the there are there So brings benefits things

Our Charles comes with one of Evercore question from ISI. next Yukevich

You may your proceed with question.

How on congratulations Thank you're wanted a to within my question with And with I give tight Good and should evening. holiday with the regards a SPS you. incremental great about could and result. partnership to you be taking automation talk Thank we environment LTL? thinking be collaboration you season for any for about commerce. a broader volumes then trading positioning such perspective, appreciated? how from on the would this commentary

Thanks, Yes. to call. the Charlie, and welcome

launch we're the obviously early with of So the SPS innings partnership. commerce

I just last truck early and we at looking think days launched here week of ago. kind X to XX that

a deep platform information. managing retail natural and they're of and that And is could. beverage share the customers retail SPS leader But I that their had a I revenue quarter, given XX,XXX I within of bunch partnership and space. that flow on in such in our knowledge even so if marriage think and neat into their But over got food I the strength is I natural wouldn't with it's space. results I such this share the that you. I wish of It's can thing about a partnership the really connecting having they've them since Commerce mean, are whole ecosystem directly a and

the of into for supply these new to tap provider And product access look ecosystem a chain customers alliances we to of just way. the our extending strengthen marketplace LTL group and such a their So opportunity and customers, SPS customers partnerships and opportunities and a the SPS. incremental It's entire in to to growth. which And as win automated another an landscape way, the shipper in an continue them us. LTL pursuing ability to think of the Commerce example portfolio us at digital initiatives of it I that for help across fully real the those and be of us customers drive is helps allows some exciting for is

been maybe here for number positioning of the terms in peak season, feels it though quarters, of we've a months season In quite frankly. the for peak as

mode to our We customers drive I whether so help the to move and them be agnostic to moving the them agile globe navigate it customers, be around is navigate it's modes XXX, collaborating work them And really, really And in job greater as help with work closely number to other our utilization. with different in successful be XX/X with help our said, moving doing shipper to forward unknowns, to environment our customers a this of is this. ways. shipper their help best to team be to really

Thanks for really clarity. That's the helpful.

Vertical Our Partners. Kaufman next comes Jeff of question Research with online

may your You proceed with question.

related of the congratulations of of region. impact shipments the impact that UPS morning net they delta to that a net did out was was I Thank forwarding. a Asia impacted the wanted coming reported or wondering, of negative? this business variant impact that was out quarter. discussed you This about just I your little positive bit very forwarding And and on had very and to a much. strong focus how on procedures

water environment to of just X.X% say right the a I fleet net now. that think been service ocean the the the would about isn't are in So active about I ocean you freight of there's active fleet current only negative. right overall, now on mean, that has if the

And water fault that's And full of amalgamation reliability chain than it clearly literally never the of issues. has an today. all at no is supply these to lines, so steamship of just Service lower it's is it been capacity. the on the

because ship relate exacerbated saw that global period the further of we As the freight a occurring were in the delays issues cycle. on for time,

clearly, them disruptions of of number terms in Both but in quantify sequentially, were can't us very chain. and a year-over-year, delays additional earnings or impact I the strong impact and for volume. caused it supply of So clearly

would probably was that, in you less across view whether you're otherwise that And hand of moving negative benefit volume solutions. ocean would other to or a ways customers the And no from some net I net But the need on guess, be. positive where the would than company. little

in the all results. of way meaningful summary in Not a

very Thank That's you much. my one.

line Your Morgan. with Ossenbeck comes Brian question of JP last from

with your question. proceed may You

for me call here. it. Thanks getting on the Appreciate

going wanted Bob, AGP How preload, you volume maybe to and closing market to your thoughts back come just margin. measure seen So sequentially all are that market to the get share not on balancing, would I I gone improved maybe have files thought this maybe least together, or have just negative point just given would we at strong the at how is. assume.

that that in are some So but I seeing the appreciate cost here. they in the good the share disruption what of these comments customers, you're

I looking to think that going is if this maybe weave cycle how So can just one think this to relationships pricing change you're your already, more of and going and more sounds you me you of is to and on this, time at for these visibility address all in you contracts, some it you thirds mentioned two forward, then annual. comments like, still book shorter but going maybe despite want indices kind more

So appreciate any thoughts there.

Yes.

how about the I about let's think And we'll with So this. talk negative start files. the, here's

year under I back X.X, and kind we've of bids, tender it to in just is think proxy happens today, has routing contracts, reshuffling in or environment. the managed year in on of contractual way it's business in in of routing trucking not marketplace. and September many sorts there's movement all of the this six had business billion fourth their in sort a I today, go through proxy that X.X, freight services in service and that got some XX And been call transportation of trucking domestic been those type last quarter that's where $X X.X. great other great all and and Robinson pricing a guide guides of all presumably is commitments over with brokers, the guys the involved October, for what just bids, If and last things in or contracts marketplace extended asset been for business makes, everybody the re-pricing depth all months, their but we've services managed management our

cost cost think see just good and on our I But So seem our or that a been been files short, pressure sell flattening and increase of when we've bad higher have negative consistent be we in to buyer the it of negative part on, to is file. this of long we we the of model market year-over-year reset. and is we're somewhat occurrence consistently we kind out. buy so to going we on, on to is fact we've continues analogous that in typically, that that upward We consistent

quarter still Now of that if down. expect clearly, after I draw would But will be about the quarter once are. conversation expect they and if same into bit this this a the think we it's start we been, is very re-pricing fourth the having down next at negative we both disappointed level. files that's year, it come where I first the highest will and sequentially year-over-year. of we're that I we being

but being And terms it what think two terms, think month us. I our In yes, our third kind I relatively is terms still on than terms to month is is XX some is, thirds business contract it's industry. the of the of business which is contractual to on a XX of other of of new something new

an And focus thing be so, we transparency on. that pricing continues to important

them important pay to more able realize the going to consultative their during us visibility is they as help because mile, to some and how be compared market an to also exercise of they very that be per rate to product and but visibility IQ that and we for down are performing industry it be quarter to to launched be the today. probably per the how impacting behaviors not their they're to rates rate se negotiate behaviors easily their give whether benchmarks, you're how shippers effective behaviors it So can

contractual of to time them that all business engine the guaranteed us way another provide kind talked guide. committed of Our dog we step provide spot their dog that allowing lot kind we've a for real dynamic fall the about intermediate And market. between a that and of an pricing them to through routing eat is to way out customers pricing keep not

good contract we're which the of contractual mechanism it. us spending for solutions that the has So for time for customers. main mechanism and lot held to to main to on price, us that customers freight are good be the But trying are up a and requesting in annual pricing innovative deliver still

pretty XX? think your would are year much you now well conversations as hold looking they And the right next based into where on

don't that beyond be I wouldn't you to would point. view. that clear QX, got be making that But I this a tell I've appears that case. out can I comfortable speculation know looking mean, at be into the I looking

Thank for to us earnings everyone to talking joining today's look evening. and concludes call. today That good you we you Have again. forward a