C.H. Robinson Worldwide (CHRW) 26 Apr 232023 Q1 Earnings call transcript

Good afternoon, ladies and gentlemen, and welcome to the C.H. Robinson First Quarter 2023 Conference Call. At this time, all participants are in a listen-only mode.

Following the company’s prepared remarks, we will open the line for a live question-and-answer session.

As a reminder, the conference call is being recorded, Wednesday, April 26, 2023.

to Investor conference Relations. like Ives, to now of Director would turn over the Chuck I

Thank Donna, you, and good afternoon, everyone.

with Officer; Chief a summary call interim Officer. Scott Rajan, leverage, the me will will Scott Operating is On provide Mike Anderson, our XXXX quarter results Chief Chief improve Arun Executive Officer; Mike Financial our the update of and Zechmeister, an and Arun provide today efforts for first and to XXXX. questions. we our on efficiency our and call up operating and will open our our outlook then our for

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

the specific you refer slides. If Our comments referencing. slide prepared we information will let the follow to slides, know we which we're are not to on do intended

remind I'd to forward-looking in Slide X contain also our cause like actual may lists could to remarks expectations. today statements. from that management's our presentation you today's that factors differ results

And the call Scott. turn that, I'll over to with

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

oversupplied. to amid Our year XX freight balance in to With through the transportation over a ago demand a market results past the now of slowing inventories one has manage economic continuing and that growth, the market have supply market shippers elevated reflect QX conditions that from tight financial transpired months. softening the is shifted

adjust exiting changing breakeven Contract cost which of likely the are cycle, approach the mile the the is bottom capacity at market. transportation declining truck, as rates results spot As the market in market. typically providers also operate near to rates per to a or the industry

we're carrier an steps focus to profitable and continued through transition, this customer more growth a foster business efficient and and to we've During model, cycles. on experience taking our delivering increase improved

a an execution Arun certain load In the life will his progress to are of digital core operating the provide cycle within making processes our on that update increasing the remarks, by on prepared model. we're streamlining

restructuring on update Mike will continuing you an our effort. give

We we're already personnel was opportunities further of by the and taken reflecting November reduce have that on and that XXXX at $XXX our midpoint additional are million the plan to actions expense been executing our our in initiated costs. guidance lowering

commercial to our transitioned with I've role to with our to from the highly engaged I'm on CEO, employees to Chair of remain logistics strategy. many my met our deliver new several our interim and of also continuing As while the and I've and with win growth capabilities sustainable Board of and our superior of ability customers, tools. global met challenges strive their as who execute expertise motivated amplify and power engine services to complex we confident in I've our customers for solve

update the I'll the Chair wrap Board up the Chief providing by leading my an committee. and is for search opening the of the CEO. on HR new permanent remarks at Target Kozlak, Officer search former Jodee

broad new operational along pool is candidates. The a smooth with the the who for accelerate the to preparing is leader. senior initiatives and naming a new With has company. actively expected, experience with the Russell moving am CEO quarter. and anticipates as team, the Reynolds, Board execute a role assistance of second process in proven opportunities leadership I, transition this strategic along a The ahead on attracted will our committee choosing the strong for leader of the

our to me let for quarter Now it results. turn first Mike review a over of

everyone. afternoon, good and Scott, Thanks,

and with results freight freight the QX mentioned, a capacity. impacted for Prices Scott by weakening been As market. our excess demand have forwarding surface global transportation were declining soft and

billion first as our $X.X record in declined billion last $X.X compared XX% forces macro With these high backdrop, year. total of of quarter our to a QX revenues of

down was and AGP, NAST. or QX profit gross XX% decline a adjusted Global last XX% or decline driven $XXX XX.X% million in a of Forwarding by to compared quarter in year, first Our

our company a last basis decline to On On was XX%, Global total day year, the total decline XX% seasonal January a in company basis, and in of in NAST compared sequential down Forwarding. QX XX% AGP monthly including a X% this XX% March year. and in business a materialize acceleration was AGP not February down March per in both down as and typical did

far similar conditions to saw March. freight in experienced market those April, we've So we in

in a QX decline QX a basis. March in volume sequential in year. QX, our Within compared X% our daily weaker February, NAST In declined last was than to on of volume resulting average year-over-year truckload QX and business, X.X% January

Our year, AGP per AGP truckload or last a shipment. per transactional market to due in truckload shipment QX primarily spot decreased decrease XX% our versus

this During overall from mix Routing XX% lowest of last volume is X.X the the volume. first QX, approximate and services an second year, XX% of we declined proxy for of in which market, our since contractual of XXXX. to tender impacted depth we've seen business, first the guide is quarter the quarter X.X in had a level transactional pandemic managed quarter year for which of

mile declines QX QX in sequential last linehaul through we truckload cost The of in year QX. continued that and price per in experienced

on declines the QX the we've seen a largest in percentage were basis. However, over that years in XX

our year-over-year paid surcharges. truckload In to decline cost QX, XX.X% mile average linehaul we fuel carriers, saw excluding a per in

haul billed decreased rate surcharges, customers, our or to fuel line Our excluding approximately average by year-over-year price XX.X%.

the coming resulted in contributed conditions the significantly decline prices across This volumes in XX.X% import a also our base changes AGP cost, price Global ocean and extended capacity, holiday. reduced of mile. Market in our to per for the off behind trade year-over-year lanes and air Lunar Forwarding freight. demand were weakened plenty shutdowns around these the With with decrease and a higher truckload business NAST soft Year New than combined

generated Forwarding last the QX, decrease our year, high up year-over-year XX%. AGP versus representing of In for of first XX% $XXX.X was million a record Global quarter which

year. $XXX by growth AGP The XX.X% decrease million results declined a decrease and ocean compared AGP in QX XX.X% a or by Within were driven last forwarding XX% QX these to per in shipment XX.X% of year-over-year results, our shipments. in

and have behind made continues many several and adding market, past strengthening years. to soft technology investments customers diversity the new the our success talent the of over geographic business forwarding its Despite

to generated forwarding QX. new our over XX% the strength addition customers our In in lanes, AGP team of of trade US in from business Trans-Pacific outside the

lower to due were Turning X.X% efforts of compensation. $XXX.X or last cost expenses to optimization personnel to year, down QX expenses. QX $XX million and million primarily compared variable our

Our X% compared declined QX last versus of average. average QX and count our QX X% head year to

of reference, count head As ending our approximately to QX. X% another of declined compared QX the point end

of QX as restructuring and continued that opportunities a into found to long-term more and in ensure QX last Our competitive year cost began efforts more optimization structure. sustainable we cost help

call, talent more our QX count decline like the to we our throughout continue on to on to to growing As allow expect as focus we XXXX, our technology head leverage we indicated important and industry-leading streamline earnings business. processes work

costs our during we the $X.XX the to As range guidance our be billion of result XXXX a to million are billion. $X.XX optimization restructuring additional for year. by the XXXX that we lowering incur guidance to progress QX in $X.XX We $XXX personnel expect cost and these expense efforts, of personnel at an now our expect excludes now additional billion of expenses midpoint. on billion, updated previous compared to the to guidance the expense This restructuring $X.XX

that of the conditions is to and for These XX% attributable are personnel Excluding lesser the reductions now we our amount to structural cost approximately primarily XXXX midpoint updated expense market restructuring softer down in earlier. charges year-over-year. XXXX reductions guidance XXXX, a long-term expenses with referred

compared million including a on reduction expenses down labor. QX year decrease Moving last due of purchased services, losses SG&A. to million $X.X primarily QX credit and to a were of in temporary $XXX.X to of

amortization our million about to $XXX XXXX SG&A XXXX are million be to SG&A to expect $XX expenses depreciation million to $XXX of expected expense. $XXX to continue million. include approximately expenses and We

call, As QX million we you QX earnings year. by QX compared last to year, from $XXX rate to recall run annualized cost savings of committed of net the this of our

approximately operating run QX rate now cost the updated guidance year. in for savings expense last to annualized XXXX million of Our total compared net represents $XXX

earlier, up versus totaled other higher the $XX.X included the year to reductions interest due changes are cost up million to long-term QX of our expense QX mentioned million, to XXXX last year. variable As expense million expected base. $X the million rates. structural and expense, interest of majority prior $XX.X $XX.X interest of be QX versus

by results the the a in million translation included exposures $X.X foreign driven foreign of revaluation up QX that QX losses, realized and also had million currency impact and currency currency-denominated loss year, we QX. last to intercompany foreign various compared on $X.X gains

volatility. which As and impacts is predominantly a are our reminder, to hedging why gains them non-cash reduce losses, we're not actively FX

rate of compared tax to XX.X% QX QX came Our in XXXX. XX.X% at in

that the benefits pre-tax tax incremental the and U.S. well deliveries stock-based tax by primarily driven typically was additional rate lower QX tax in from lower in as incentives The see proportion to as we credits income. compensation

to was year We be $XXX.X million continue our federal effective diluted expect XXXX to XX%, international XX% changes no assuming income $X.XX. tax tax was per or meaningful QX to rate and state full net policy. earnings to share

the of the which QX XX% down earnings of to XX% was non-GAAP or Adjusted XXXX, compared up charges, $X.X per prior share, versus million year. excluding restructuring $X.XX, was

was by ocean capital QX sequential $XX.X Turning in to cash driven The price model. truckload of million QX in $XXX.X and $XXX.X of of to operating in decrease cost cash our working $XXX operations a flow, the XXXX. cash generated by was and improvement used and year-over-year flow QX in compared declining net million million, by driven million

as year Conversely, increase a operating sequential capital prices working and QX of last rising. in were $XXX million included net costs

three has price That some of $X.X working in model. a than capital our past operating have and the more flow cash to Over quarters, cost down, the transportation of realized benefit highlights we benefit the of and billion. as resilience purchased inherent come

million range our continue capital be of to capital we In million to and $XX $XX.X $XXX compared to expenditures million QX, $XX expect of last in the in expenditures our million. were year, to QX XXXX

of million $XXX $XXX net of last The million $XX.X XX% cash to by debt. QX returned was of reduce year We repurchases. exceeded through shareholders and dividends $XX.X shareholders to in share of our the cash down versus but cash million driven million returned to cash used income QX,

on Now sheet to highlights. the balance

allows we cyclical us cycle. strength our our through model customers balance of As the of highly for freight downs demonstrated partner and reliable the and the sheet the makes invest a to us market, have through and business ups

customers provide needs. the Our reliability their optimize stability as value we to they that work transportation and

billion under a approximately funding We ended of QX $XXX of $X.XX liquidity of billion of and $X.X comprised our million. facilities balance credit committed with cash

QX QX Our end last billion, $X.XX year. balance $XXX the of down was at million debt versus

up was QX. end Our at from debt-to-EBITDA of X.XX times the of leverage net QX X.XX end at the times,

maintaining allow investment-grade rating includes capital. an of strategy allocation credit cost capital to Our to us

deliver our to anticipated targets. the in debt we XXXX, leverage have With earnings reduction our reduced

cash the you the generally amount As cash reduce available of for reduces debt used would expect, to that repurchases. we share

Over long-term growing alignment we in with our remain cash to committed growth. EBITDA our the long-term, dividend alignment with

important dividends leverage the as quality more share repurchase customer enhance Our marketplace. to shareholder program is efficiently and delivering are than in anyone service value,

our I'll customer turn call to our the walk experience the carrier operating improve and to Arun over call and With leverage. strengthen and to that, our through efficiency efforts

afternoon, And good Mike. Thanks, everyone.

on mentioned focus to scaling operating our I last our core As our to are processes on model. streamline earnings that we've increased call, opportunities

service processes increased of experience volume these growth simultaneously and decouple customer will improving enable while and the Streamlining productivity, and to us headcount drive levels.

we sequential day improvement per year-over-year end of improvements. of by key a to per productivity towards metric the in measure that And X% of as our Shipments we used achieved we our QX goal QX XXXX. XX% improvement person a progress is

In made QX in touch tasks. appointment In points of lifecycle the of the XXXX increasing execution of in-transit the load. and we our tracking, the was related goal, digital accelerated have reach order primarily by driven to critical progress we a automation

well These key of advantage by on leverage. and and customer and include information our carriers efforts utilization giving that as coverage digitization improve superior Increased cashflow. operationalizing automation delivering their price to insights customers elements at and service providing scale are operating as features

our growth, share creates unlock operating leverage gives operating delivering to productivity on operating the improving flexibility margin targets. long-term and processes, accelerate Streamlining us while market leverage, pricing

the Scott to his over I'll back comments. call for turn final that, With now

the Arun, are and to demand logistics continue for Thanks changed. weigh challenges, With volume lower growth shippers landscape innovative available and partners. is competitive cyclical as competition has pressures for global on the economic looking stable freight inflationary intense, and present markets

plan We've to through model cycles; be and in continues initiatives to our we provide profitable strong sheet balance shown innovative generate the strength investing our solutions long-term we expect and of to continue growth. that

our strategic bring the same what continuing cost needs while our At structure. our customers center focus keeping of we evolve of our highest overall the to we're lowering organization carriers do, and time, priorities, the to to including greater at

experience initiative and all shareholders. customer this will to for share the expect drive and and drive and lead our growth improvements which in returns market improve We to people, carrier amplify continue we expertise to of our of expect gains our

about XXX my After days excited first opportunities C.H. this in more Robinson's I'm in even future. role,

some the challenges best logistics in dedicated and to We of have they're the solving customers. for our industry, people

of period disruption, during to customer our the integrated to more exceptional the solution. an people ability and extended very high, service provide customers a result having As scores market that service provide customer our strategic of experience are we're discussions about our

proposition our technology the some processes provide presents while near and opportunities. of So and differentiated many challenges, value strength people, term our freight environment

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

is floor now The questions. for open [Operator Instructions] you. Thank

coming Atkins Please from of Stephens. question ahead. Today's go first Jack is

Okay, question. taking you great. Good evening my for and thank

at guess, Mike, is one for But guess you, to or want understood in, on your market kind trending be your if is of Scott please the balance in I'd correctly. I to March, you're like I Arun, year. It the ballpark sounds I get take do. maybe you same comment chime but how of as April if this So for the curious the looking

your this, back in market I guys view? the the some the last and of customers be beginning year. would back. you. there I you updated I'll telling you of improvement troughing think really to what Any to that then that stop to back quarter was sort it see business sort and update if the to maybe plans? But the about are would second time update in the be sometime their of think Any helpful. Thank hand thought

I'll on Why we then kick color Yes. customer have a little and is that don't This Thanks, Jack. off, Mike Scott. give sentiment.

Okay.

competitiveness, that to question, year. last maintain up truckload over QX obviously, year the the the QX It pretty bids the We're Jack. on involved year. side in Yes. market We've And particularly experiencing was market. able for up with. seeing a Thanks this good last win soft here is over been we're actually our pretty we're in percentage that on

So I think we're effectively. competing

reduced But what we're seeing demand. are inside those bids, total

They're aggressively -- freight lot are seeing that as environment. in the past, working customers that's There's market running had and as they've through plants customers still volumes this of in So the they the just not the the of still soft have reflective a are not inventories. past.

soft seeing So we're a pretty market overall.

I When brokers, think point are we themes I'd look at our NAST despite business truckload. there really in we think out there, I with on there. to down X.X% the that's we like And QX, a share respect the being to that feel few grew XPLs

a pretty did we think good job. I

get that for that enhancements a volume We is that productivity X% roaring, also did a to in person, got market. really to generally and productivity, a we that market. talked able we're improved the easier little soft against do per about productivity day soft improved XX%, in per target we but bit year. shipments It's And the when

last thing, service we we our customer service, had there. the really we best-in-class and was felt And about like customer talked

So, market. the theme our is overall soft

You we the April quarter. talked how described to about relative

of were translate we When had we to at than that if -- a enterprise business, enterprise volume shipment in better day, quarter. February AGP you But the in per is down look March. January again, truckload in per kind certainly did we AGP the over X.X we or our

March. has And out kind similar in we April played where were to of

down we're market the primarily brokerage experiencing. original market driven share that our but probably within the certainly by versus universe, So soft expectations gaining

environment. a I'll inside, too, about talk I guess, the little contract bit, And

changes versus contract I back seen the, business bids we've half QX less if the customers that look and and was, in XX at QX, of that months months. XX at than go bids think, were were you half about One about

QX, As into leaning were into XX really we got those RFPs months. more

that's kind of to bottom that could be And And indication the customers XX that, here lock three might so about we're way gone point up lower, market. that seeing of the the rates quarters in of those. but to all another trying months where are say data in we've seeing you

want know, I with have So, say. if you you to that, don't Scott, any more

vertical. inventory. just our feedback. really about by in XX months dependent customers. meetings levels probably little I would maybe in X.X been Jack, Yes, a be pretty you're top But the last to sort retailers I've lucky is sentiment what customer with with say higher of hearing with consistent of it's and

are health theme There and them challenges going forward Automotive, working meetings, solve some. Robinson aspect of logistics full us with of a is too, just sort say longer-term care, of portfolio. strength. with their I the are areas of partnership these our helping would common

the So, we're a in softer really face-to-face engagement market one doing thing customer meetings. leaning and is we're into

much Thank so for the you guys. color. Okay,

Thanks Jack.

question Thank go Moore you. Please Stephanie coming The from is next of Jefferies. ahead.

Hey. maybe Good market color to think CEO here. ongoing like in around bit to see search. the wanted do the I would some that afternoon. Thank you. general, little get more I Scott, a certainty

it, been, Board brokerage candidates, or might who of as process, of provide the transportation if it's any the you, specific have of experience these what expertise call some maybe CEO you factors? transportation Thanks. of this as view that evaluation outside of in might just is that just just the looking in new could for entirely, someone Now evaluation thinking well how experience the about the have experience maybe update Board several months are

proven Sure. change and name CEO here expertise can operational and diverse process really seasoned leader, quarter. mentioned this is strong. positive candidates pool comments, of moving someone to new with in a drive we is Stephanie, who The is and in the as Robinson. looking I've prepared the expected inside an as my for Board executive, expect

right of committed the on search and finding that the Board pausing decisions is is really the And making we the believe anything. part I'm also committee leadership the senior team to I what would doing conclusion of with to we're coming leader and process. not and say

So quickly the and move we set can for for that this new leader leader up once announced. success

you then on appreciate But Great. the Global on gave that cycle. NAST us Forwarding Jack's Thank some lastly, what's I And about in you. about give going question additional going color maybe the to the business. what's in you response color in could

faster, you. also I think bit there an it would that started be to for Thank there bit to helpful? a Is deteriorate Any earlier. a color rebound opportunity too?

certainly both Most I and the we've ocean shipments think there over a that I to of has softness weeks, and that early But too it's news been whatnot. few in Yes, green are positive air past shoots volume think more and and demand seen. recently, trend. some call there

the and pretty that you've much as of has think down a board. result market across come been really the soft, pricing the softness I seen

sort I also in. of cost would as process back customers RFQ strategy been And for in be we've in if is we'll it that add, that position we in active to season obviously, a business see the to coming, we'll be fit. of And Stephanie, peak very with prepared adjust soft, leaning that.

much. so you Thank Great.

Thank go next is question TD you. Please The Seidl coming Cowen. from Jason ahead. of

getting terms think afternoon, Thank the a talk wanted in mix to at know I of American we're business? that mentioned if that need of you in the And close with you terms about you, prepare can I bit you the will. if your we're do cycle. with think you operator. there to you bottom, of then in cycle ocean? North Good truckload we where sort gentlemen. comment of for What to on do guys little

that one forecast we marketplace. the mean in the do I things Yes, is pricing of we

a look probably of right and feel a the going we're very we what we go or market. from the the to website, be, of like at standpoint, If is the you pricing give think bottom now, at kind you our to and near spot market we bottom

you follow about pricing the When think will the market. contract market, spot contract the

that as pressure those still a contract within some there's -- pricing reprice. year the So were contracts downward the old to market come on

of little bit there's that on. And still going a so

end that I of the we're market. think just cycle getting the or on air the ocean annual nearing pricing rebidding in the on end side, to

encouraged. think our been team I has pretty

business, few talent. the gone and both some In in share pretty we into, market ocean participated air. effectively that advances, brought we've been to We technology and And on too. some able we've over We've here some one had that in some and had grow verticals past years. some geographic we've that is expansions that

customer of we I continue feel air. good to I be in the So, pretty round, process. about both there. the feel this engagement pretty good about and grow We on last bid think share we'll to ocean market we the optimistic out think that feel coming able And

good That's color.

a Just quick follow-up.

guys looking then. And were from be so of I truckload at online, would you current that go if the if the of forecasting pricing base back sort levels for customer year, mentioned I'm a in that half up you

will Yes. year now. Down year feeling at we're feel the we're kind like the We we're we as higher end -- than low up come that where and of probably like go the through at.

enough. Fair

spot on talking is market. website on Obviously, we've the our the spot -- that, what contract got and price like I said, follows And market. I'm

So, will along with as come those reprice, contracts those it.

it, Appreciate guys. you. Got

Thank next ahead. of from is Barclays. you. The Please David go coming Zazula question

of volumes. had you share my heading taking the space question. a tracked market on drive little noticed forward. you for we've market I and Could the at doing least to What some will comment the indices you in go outperformed think LTL bit? that on Thanks LTL where you're

Yes.

expectations fuel getting the business board. LTL But market margin to effectiveness That our going we've had there talked our business on but we've of at kind bring out business a seeing has a in, that side, What that bit from to we've been volumes a about X%. we good competing the that the lap. similar we prices. large that lower runs lost we're our the to customers during able been with and automation feel LTL On standpoint, pandemic little impact that a and that was we've than faces reported softness couple the QX of of also down about that across

come business a one are So, improved up when where down comes fuel margins down. our and part is when that's fuel little of the

$X last there we like And impact despite there. we that margin I the there's think so coming in fuel, we little fuel But overall, compete down were so perspective, year, we a on been softer from bit able a on going about results as comp and we've than in on originally QX, feel of to expected.

-- resistant that any you you're guess do talk you initiatives. quick, from can Is implementing. along Arun, in you the are to automation you with you've on help mentioned what some customers customers initiatives extent have that feedback I gotten and to maybe the

Yes. Good question.

so they we with that their have automation allow that's to and us on integrate will appointments. into of automation and/or of or systems can should And we're tasks. internally appointments, as the doing scheduled customers is book extreme -- carrier side, what systems automation the to benefit. it we're on have most So relates reach side have scheduling customer that where do to or great, appointment-related customer via Much actually customers doing systems the and

trace, Ultimately, they cost the really like them back it's ultimately, it's And in-transit to at of really heavy and a is so push it that well, lifting. It's self-server and not savings about track relates don't as lifting -- tracking carriers, heavy for about most -- right? as all.

our visibility around customers relates as giving confidence performance. the greater to hardened with service ability locations, technology us better now us Carriers self-serve their it back gives which to then have that to we can to relay and

currently really on. we're pushback on significant that sides working activities marketplace, we found on the of ultimately, both So, the haven't

very much. it. Thanks appreciate I

from Thank of Please you. Chris question The go coming Citigroup. next ahead. is Wetherbee

wondering, afternoon. could for working Wanted that that know extensive down some comp cost you've break maybe a maybe bit that heads the the of excluded comp I'm little cost-out on, about we numbers. is the I maybe from and between it upsized particularly Good if on Thanks. incentive guys of then your initiatives the to are goals if talk year. or personnel part maybe side, is you

if start there. Just wondering want you to

Yes. Sure, Chris.

on out And we recap had QX the that have to to we annualized year, that million do which and to there million cost relative the were use So savings, on savings put said commitment call. $XXX last our base in originally as were talk last we about about that, $XXX the we million. cost just net from expenses $XXX we going

what that billion. annualize then billion. $XXX the $X.X $XXX midpoint our you Midpoint saw put million $XXX $X.X personnel million overall our guidance expense. get the on savings. you there of guidance how That's that's in we of that is So, million, out in you was the new the XXXX reduction of And

into -- going some incentive When annual into also we you folks. for that, then increases in our get normalized And the do we composition salary our from have tailwind of go effect March. forward,

so didn't of QX the impact And it. fully, end just they

of staffing. that expense personnel on going force for our will so forward bit the And be a us the side. little was headwind But primary a change behind the expense guidance

and We the progress about were we we in at XX,XXX, count really if down ending QX, ended you so nice end in QX. is on our QX look were And where -- in from about QX. staffing we've X,XXX head which of at made

in you went if down And we're we about where from X,XXX were to QX. back QX,

was fact the cost we talked are decent we out get of expense some job I escalation frankly, think needed we market and the service, kind of from that rightsizing hot there structure the long-term that so done fix we've our had of tenuous. more because volumes And perspective. when to about and And times a required both the pretty a for

to And that bit. for had so we a little correct

toolbox tasks, that getting our that things focus profitably they rid that putting had to along, we cost really we've be and do them And our allow good them. to want people building on automation is desirable on going at we they of do can less the forward, need really the did. value-added and of looking to we we competitive processes needed business some for really just structure to then that And that work the to our work some streamlining box growing so felt do like long-term more all things more, in to and support tool with there, great

Scott. taking last strategy and this one senior organization we've of deciding that in the is of things on our with concentrating XX of we part say simplifying I'll highest Chris, an also on the really impact. no days team the important areas is to worked is because things the and leadership all resources out of as just the to know; what add and you complexity

spend give talked the simply to decade of part they're the by new tough of put, we're we're the reducing a of And thing done, going matter I'm about team to see work that I going ahead for really proud the our to before, I most. think and things quickly. this the platform really business the right benefit but on senior decisions. So, do stakeholders focused for on as for But is move to And CEO also, all forward. has of really the focusing

of a helpful a through me weeks. of Forwarding low Okay, side running the maybe off guys very course a couple sort that's that. ocean extremely of life the signs bottom color, on I so quick some of appreciate last of been spot the in to transitioning bit the And follow-up terms of you to There has Global rates business. over

spot relative maybe think success the year for other have suggest. contracting relative better contracting this beginning the of I some might what season players with to to had the market

spring contracting follow sort Or into the season. we're of is I to continuing annual sort spot that the going it don't about thinking seen? know that if you've those that shipping of market? that's market as that are Is the of as are something through you you season path guys move how

Global team success. of and and Yes. terms in getting reacting reestablish upgrade pretty And in with technology it process year, our customers us that end about positively to rolled in Forwarding of the connection that contracts Navisphere that in the reasons. January, for has X.X variety a helped That I had the to and that. really helped good space. We of we've for are was customers We're the feels think to out rollout completed and the

average track quality, monthly We're exceeding of our expectations usage, usage data on customers. feature users, by trace

are customers. they're the get support more kind and customized of getting I attention they're And get of getting capabilities, they're helped new us analytics that to those to things customers is what have data -- decisions. reporting some insights, closer think the So, more

more And there to like I some the they've excited of over here reason have and so they to to that weeks there. say, not but the positive continuation with about years. think getting our their team feel the in new a about few the call geographies is engagement in as Like last that the well seen soft verticals customers past think the of trend, share the it said, there's attention that's news some and the you good gains I maybe enough despite market. But is some few they're

Thanks Okay. it. Very I for color. good. much appreciate very the

of Thank go Stifel. from you. question coming Please Bruce is Chan ahead. The next

peers? good Navisphere I the think on when there? gap Yes. the Thanks follow-up start and I per line head you color seeing we with best-in-class commentary know just conversion everyone, X.X. to process, mind afternoon. still some here you that about EBIT in time need What's don't to around or of that is sort close if the I deployment. for if this Maybe very early profit it, a mean, of could sharing it's some your But the tool start

Yes.

a might that, a at have couple me of Let as and Arun take well. comments cut

constructive engage with able which had of the a help to being more the quote make data sure Navisphere solve is X.X, they're efficiency, that while bidding they the it getting more customers around enhancements really the want GF process. some in some help way technology to other more the efficiently, the they on We've it. way important So problems it's helps to with have, in us side

say, laws so plan on the get Global unlike is not complexities just associated would behind, side Forwarding but customs a think and world. about market rules you and Global that languages, on a to the lot goods the in the more with plan that the around side, currencies, when is the upside you game that further -- with tech Forwarding game due of as transported NAST And out, some rolling I while little

on Navisphere efficiency do than I have in feature go been and were more So, around about talking to upside that and as good we efficiency, has will there. continue X.X but on with growth well. really technology investments really But think going we investment the benefits that enhancements

Yes.

online X.X about So, more reference or to capabilities. kind elaborate Navisphere when X.X, you of really that's self-service customer

and point. about to growth, Mike's customer customer And retention engagement, so it's more

there we're set self-serve doing tracking, we're to As and and it to activities relates automation productivity, how a whole transit NAST task productivity. automation of are and similar in doing appointment-related drive to up

as of similar track person or day. per along unlock there. to is a day, similar given internally, we per the person we file, Global activities activities underlying lines how NAST Forwarding It's something and per metric to various shipments it files initiatives per have to productivity has we relates it the call

a say little from I'd that's X.X. Navisphere reference So, decoupled bit to the

could back When bit think just and did after Okay, spate a other commentary. call XXXX, that. of acquisitions Forwarding. to, APC more little that's if Global push And XXXX, in that I fair it, a I on you

left of and there commentary lot growing are conversion there were EBIT a that kind of still of we're here we the productivity in and to a think I to efficiency ratios. still sort back that new was was and XXXX, the organization, same extract. And

makes you time right…. that what got around, you've So, this the confident

Yes.

made Europe start, they've India me making to the well. US about, We've I'll from to The some China progress growing Arun been trade been let US, the has US top Let team with share. geographies. the talked Oceania. in Ocean make the as that comments new happy to and three progress Currently, forward lanes. US, again, been They've to

around just just East, customers not cetera. world, They ranking number really an picked Middle opened Trans-Pacific, there all geographically Oceana, in Europe, but QX, Latin the four office the achieved in up in and America, expand Southeast there et India, mid-February it the Dubai Asia, into

been to want has job. of team runway and pretty is of to efficiency the streamline there there's doing to. we to journey processes good an there's it's lot the lot ability and and a automate a that a So, -- optimization And get marketplace, level -- a there. ourselves complex It's

good. has the So think performance been I

pretty too. runway solid there, is I think the

what to a some relevant. had onboarding the add couple work To other investments Yes. of our Mike happen around said, was factors There acquisitions onto lot that that I think probably over time, probably of to are foundational platform. a are there technology of

that it actual around XX, past the been heightened the revenue call whatever unlock leakage of recent say or to productivity scrutiny past, will over else. XX investments months, I connecting either or there's technology

say to it or I'd two. the so priorities and the probably the year discipline heightened back gained And has data-driven over outcomes focus discipline around or last linking investment

you good. Very Okay. Thank

Goldman go Please coming you. of is Jordan from Thank ahead. Sachs. question next The Alliger

Hi. Yes.

bottom your on your out capacity. of prices curious then I referenced, from breakeven the I'm different And be, things thoughts how your cycle a You could taking in of given ways. And one about talked just think, been that few will the anything in partners? seen the I approach think Have start spot operating you maybe you the processes It was demand. experience especially what's quick regard? carrier Thanks. costs.

they're well. about we Yes. as at quarter do of sequentially getting out one-third Thanks think new is pricing XX% down significantly start think carrier would couple market. the by the A sign-ups, comments When in down there. Jordan. point the coming of you capacity and look We that would to where the year-over-year down pretty

become So, the and a slowing indication things of in truck rates, that but rates carriers more years, labor too. than an few here cost probably they last for expensive has purchased insurance expensive, with was down, fuel that's the usually if more

of fair the cycle, truckload we're maybe information on sure. too. give it's I'll verge probably capacity So, to that some for some coming around think you out say I interesting the

some So in duration when you're shipment, those per cycle of look in forecasting similarity AGP trough. the at last three cycles is terms there peak and come when guarantees from the at in to they US the are the go you But if of will cycles. no looking and we've seen

looked it was X.X between at So, to it also you three And to X was peak the quarters, the last the time between looked at years. the if years. X.X you time troughs, X if

you're so versa. about between trough or quarters peak and And talking seven six vice the to

know to Now going is if cycle no to follow way this suit. freight

But in shipment XXXX seven our from QX of quarters XXXX. per last AGP QX to was truckload peak

talking our we'd itself which the again, per so this be repeated year on to trough history seven last And six then was from And AGP QX QX basis. of XXXX. or as about of kind of year next quarters an shipment QX peak,

Thank you.

go Thank you. from next coming David question Bernstein. The of ahead. Vernon is Please

of Good other of some that benchmark stuff. The being the six month from slide in Hey. indices and per Thanks XX%, rate third-party that's of some the ahead or there, fitting mile kind for down you well here. on CAS afternoon. me truckload your follow of

cycle And is Can we at Are us be level to much take what more to a as kind now? book stabilizing you getting for a trough? go-forward pain mean maybe give of how this the that right at Or still there these perspective? is repriced from this does sense levels? some of its reaches truck going

re-price and be throughout all our heavier to in a we contracts Yes, QX. QX tend little the year; bit

QX XX% XX% and in and QX the QX. other -- it, in QX repriced call gets So QX and in

So you about way. of it think that kind

we're was the basis. to looking was how comparison at in this decline when what last per was think interesting much on I year a price mile cost percentage quarter mile and per just

per pointed as cost were So, XX.X% rate on kind we're a a -- on per of out, mile. mile we and XX.X% we down

the those And are decade. year-over-year, in so seen over look at you when a we've that largest

was the for fifth eight the price it to the we straight came mile cost Sequentially, prior quarter after per that came that straight quarter that's saw down, that fifth down run-up per mile quarters and also seven, that. and

that's we're it way the play So seeing out.

then And just Okay. follow-up. quick maybe as a

different more complicated. us in understand the detail buy and for sell don't business the some You and rates modes, give of same the of terms

coming business are Forwarding are which to getting caught the looking rates is down will But I market to guess the rates you bit, at of your today. has customer are about the we as -- and we that spreads, widening indices point available up or with your little at, be sort rate correcting a where think also where

of there's that. that terms Yes. have And the play said business coming bottom, gets Like in and kind capacity especially say certainly, that there -- been into repriced capacity going to we've to on here, ocean where we re-bid, the that's got market there. you've out side, hit you a issue of hard through

a there's as in. coming much And little but out, coming as bit not

is out environment macro the to And be what's considering particularly so how plays in and demand. there yet seen, that

of the Obviously, here is for that a at The year. looking market possibility the demand. remainder of recession the impacts

harder little And is business a this will get how play to the supply/demand that so, in bit pricing ocean in call kind point there. at of reflected

And on air side? the

demand the Yes, is macro yet situation on bit But it obviously to much air similar side. be will and for except wouldn't key capacity seen-- a different I off say think, environment, dynamics I the little is the there that, different.

for right. time All the Thanks guys.

Thank you.

go one coming last you. final is Bank of Please The of Ken We're for from time America. question Hoexter ahead. question today. showing Thank

where the Great. just squeezing you to C.H. think I the But CEO. for moving -- me do remarks I the design intensive? to of how company want people it's automation some the Thanks on more be guess know core thoughts less should about maybe understand in. questions and and Scott, I the in for you the prepared your think on you brokerage? headed. had timing

Yes, Ken, great question.

it's a combination think of I both.

continued our and operating for without of grow of our people adding for growth leverage things drive to think and business the one technology to the and is what the people doing. ability expertise headcount amplifies we're key drive our I the

customers, path we win So, do when our a me, right to and our win this have we're for win our for for people the to on wins way. a carriers multiple

of guess do the shift a step layoffs reshaping the in see big we seeing dynamic where I it take to that further, a it, But of we're balance near-term? to

engine. of We've have to in seen of we of our at that how think terms against we is things commercial the Robinson compete that I things our is No, leverage competitors. technology think I the so one do technology. is one the strong And

reduction is out also one cost to grow a game, things drive of the grow drive additive right part And that one here an is complexity this take is business doing and of five. plus Arun the it four margin. of one out things our strategy equals or towards of and So, to costs areas the the organization and

and capacity right lot -- peers understand. helpful profitable That's competitive the talking there volume then mentioned just you follow-up, dynamic And a taking the positive spend share. a guess can of about in are market the just a on that on peers Maybe on now? the exits, to minute you digital I growth focused focused in are

comments of there, couple a make Ken. I'll Yes,

committed seems mentioned here. competitiveness have we profitable to volume, side out to I we're getting the up, particularly could on that And volume. brokerage So certainly and go but heated the more get

are loads into competitive or so to would lead not And situation we of negative us interested that issues in that getting with kind any of chasing volume. kind

We been got we've understanding great engines. got disciplined like pretty pricing in really So, there. we've feel good the We've market.

advantage way and gain And market margin that so compete and targets. to on data we the connectivity a our with against share both will strides able customers there effectively feel pretty like our in make we people to a standpoint our can and to continue be

thanks Great. the for Appreciate time. it. Mike Scott,

Thank you.

turn like the Mr. back At to I'd time, you. this for floor over Ives comments. closing Thank to

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

thank gentlemen, and event. you for concludes your This Ladies participation. today's

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