C.H. Robinson

Last updated
C.H. Robinson Worldwide, Inc.
Company type Public
Industry
Founded1905;119 years ago (1905), in Grand Forks, North Dakota
FounderCharles Henry Robinson
Headquarters Eden Prairie, Minnesota, U.S.
Key people
Services
RevenueDecrease2.svg US$17.6 billion (2023)
Decrease2.svgUS$515 million (2023)
Decrease2.svgUS$325 million (2023)
Total assets Decrease2.svgUS$5.23 billion (2023)
Total equity Increase2.svgUS$1.42 billion (2023)
Number of employees
15,246 (December 2023)
Website chrobinson.com
Footnotes /references
[1]

C.H. Robinson Worldwide, Inc. is an American transportation company that includes third-party logistics (3PL). The company offers freight transportation, transportation management, brokerage and warehousing. It offers truckload, less than truckload, air freight, intermodal, and ocean transportation. [2]

Contents

Company overview

C.H. Robinson 53 foot container C.H. Robinson 53 foot container.webp
C.H. Robinson 53 foot container

The company is headquartered in Eden Prairie, Minnesota, with more than 300 offices and over 15,000 employees [3] in North America, Europe, Asia, and South America. [4] [2] [5] The company has contractual relationships with over 66,000 transportation companies, including motor carriers, railroads, air freight, and ocean carriers. [6] It also provides services including supply chain analysis, freight consolidation, core carrier program management, and information reporting. [7] C.H. Robinson also owns Robinson Fresh, which buys and sells produce to the foodservice industry through independent produce growers and suppliers. [8] [9] [10] [11]

C.H. Robinson's transportation of goods accounts for about 94% of its gross net revenues with the remainder coming from sourcing and marketing fresh produce. [12]

History

Origins and early history

In the early 1900s, Charles Henry Robinson owned a small wholesale brokerage house that provided produce throughout North Dakota and Minnesota. [13] He partnered with the Nash brothers on April 11, 1905, and became the company’s first president. [5] Nash Finch Company was the leading wholesaler in the region, owning and operating grocery stores. [14] [15] Following Charles Henry Robinson’s death in 1909, the Nash Brothers assumed control of the C.H. Robinson Company. [16]

C.H. Robinson became the procurement arm for the Nash Finch Company as it expanded in Iowa, Minnesota, Wisconsin, Illinois, and Texas.[ citation needed ] In the 1940s, the FTC found Nash Finch Company to have a "price advantage," and under the Robinson-Patman Act of 1936, C.H. Robinson Co. was split into two companies.[ citation needed ]

The first, C.H. Robinson Co., was formed by the offices that sold produce to Nash Finch’s warehouses, and ownership was retained by C.H. Robinson employees. The second company, C.H. Robinson, Inc., remained owned by Nash Finch. [14] [5]

Expansion into logistics and trucking

C.H. Robinson’s entrance into the trucking business came after the Federal Highway Act of 1956 and expanded U.S. interstate commerce. [11] C.H. Robinson and other shippers had previously relied on trains to transport goods.[ citation needed ] In 1968, the firm entered the regulated truck business as a contract carrier named Meat Packers Express based in Omaha, Nebraska. [14] Robco Transportation Inc. was formed by merging Meat Packers Express with additional carriers three years later and was sold in 1986. [5] [13]

In the mid-1960s, C.H. Robinson Co. and C.H. Robinson, Inc., consolidated their operations under the name C.H. Robinson Co. Nash Finch still held a 25% stake in the brokerage company, with C.H. Robinson employees owning the remainder.[ citation needed ] By 1976, the Nash Finch shares had been bought out and the company was 100% employee owned. C.H. Robinson focused on using emerging technology, and adopted IBM mainframes in 1979. [5]

The Motor Carrier Act of 1980 deregulated transportation industries in America and increased competition for logistics providers and shippers. [11] [13] C.H. Robinson created a contract carrier program, expanded its freight contract operations, and established itself as a middleman sourcing operation for shippable goods.[ citation needed ]

The company’s average annual growth, measured in truckloads, more than doubled and C.H. Robinson posted more than $700 million in sale within five years. Forty per cent was generated by truck brokerage, with the remainder of revenue coming from produce sales. [14] [5]

Renaming and IPO

The company renamed itself C.H. Robinson Worldwide, Inc., in 1997 and had an IPO that raised $190 million for the 101 employees who sold their shares. [14] The initial market value totaled $743 million, and the firm began trading on NASDAQ under the symbol CHRW. [17] Gross revenues for 1997 reached $1.79 billion, while net revenues amounted to $206 million, a 15.1% increase over the previous year. [14] [5] In January 2023, Bob Biesterfeld stepped down as president and CEO; the company announced Scott Anderson as interim CEO. [18]

Outreach

The company’s work with nonprofits and other charity and community causes has been acknowledged, including selection as a finalist for the Minnesota Business Magazine 2015 Long-Term Achievement Award for “demonstrating a long-term commitment to positively impacting the state’s community of nonprofits or other worthy causes.” [19]

Acquisitions

Beginning in 1989, C.H. Robinson began expanding its international logistics operations with the opening of its Monterrey, Mexico office. [16] It acquired C.S. Greene International in 1992 to add international freight forwarding, air freight operations, and refrigerated containers.[ citation needed ] In 1993, C.H. Robinson bought a 30% stake in Transeco, a major French motor carrier, and eventually bought the entire company. [20] C.H. Robinson added to its operations by purchasing companies including Daystar International, a distributor of fruit juice, and FoodSource. It also became an exclusive marketer for Tropicana, Motts, Glory and Welch’s.

The company continued expanding its logistics services by purchasing regional logistics firms like the Chicago-based American Backhaulers, Inc. for $136 million in 1999, and acquired the Minnesota-based Trans-Consolidated Inc. [14] [5]

At the end of the 1990s, the company began making acquisitions to expand its shipping and logistics services in international markets. These acquisitions included: Preferred Translocation Systems; the Argentina-based Comexter Group; the Western European transportation provider Norminter; New York-based Vertex Transportation Inc.; Smith Terminal International Services, one of the largest third-party logistics providers in Florida; the Germany-based international freight logistics provider Frank M. Viet GmbH Internationale Spedition; Dalian Decheng Shipping Agency Co.; FoodSource Procurement LLC; Apreo Logistics S.A.; and other major European, Indian, Chinese, and North American logistics providers. [14] [21] [10] [5] [22] [23] [24] [25]

In 2012, C.H Robinson purchased Phoenix International for $635 million and doubled its ocean freight capacity. [21] [26] The company also acquired the Polish shipping firm Apreo Logisitics S.A., which provides trucking, air, and ocean shipping services throughout Europe. [25]

The company launched a technology-enabled platform called Navisphere in 2012. The service provides facilities to C.H. Robinson employees, customers, and service providers to manage supply chain logistics, transportation, and sourcing activities on a global scale. [6] [27]

TMC, a division of C.H. Robinson, [28] provides support for C.H. Robinson’s network through its Managed TMS, a combination of global transportation management system (TMS) software, and logistics management. [29]

In 2015, the company connected its shipping and logistics services to expand into less-than-truckload markets; it acquired the company Freightquote, a privately owned online transportation broker. [25] [30]

C.H. Robinson acquired Prime Distribution Services on January 28, 2020, for $225 million. [31] This purchase moved the company into warehouse management [32] with a total of 2.6 million square feet of warehouse space. [33]

See also

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References

  1. ↑ "US SEC: Form 10-K C.H. Robinson Worldwide, Inc". U.S. Securities and Exchange Commission. February 16, 2024. Retrieved February 17, 2024.
  2. 1 2 "C.H. Robinson Worldwide Inc". Reuters. Archived from the original on 4 March 2016. Retrieved 18 December 2013.
  3. ↑ "C.H. Robinson Worldwide". Fortune. Archived from the original on 2018-11-23. Retrieved 2018-11-23.
  4. ↑ "CH Robinson Worldwide Inc". New York Times. Retrieved 18 December 2013.
  5. 1 2 3 4 5 6 7 8 9 "C.H. Robinson celebrates 100 years". The Produce News. Archived from the original on 24 December 2013. Retrieved 18 December 2013.
  6. 1 2 "Extensive expertise, innovative programs keep C.H. Robinson humming" . Retrieved 2015-06-15.
  7. ↑ "CH Robinson Worldwide Inc" . Retrieved 2015-06-15.
  8. ↑ "CH Robinson Worldwide". Forbes. Retrieved 18 December 2013.
  9. ↑ "Goldman Sachs Thinks These Are The Ten Highest Quality Stocks In The World". Business Insider. Retrieved 18 December 2013.
  10. 1 2 "World's Most Admired Companies: C.H. Robinson Worldwide". CNN Money. Archived from the original on 24 December 2013. Retrieved 18 December 2013.
  11. 1 2 3 Lynn M. Pearce, ed. (2011) [1921–1925]. SIC 4731: Arrangement of Transportation of Freight and Cargo. Vol. 2: Agriculture, Mining, Construction, Wholesale, & Retail Industries (6 ed.). Encyclopedia of American Industries.
  12. ↑ "C.H. Robinson Worldwide Dividend Stock Analysis - Sure Dividend". Archived from the original on 2015-06-13. Retrieved 2015-06-15.
  13. 1 2 3 Alan Rushton; Steve Walker (2007). "International Logistics and Supply Chain Outsourcing: From Local to Global". Kogan Page Publishers.
  14. 1 2 3 4 5 6 7 8 Jay Pederson; Jay P.; Catherine Meyrat (2011). Drew Johnson (ed.). "C.H. Robinson Worldwide Inc". International Directory of Company Histories. 116. Detroit: St. James Press: 87–91.
  15. ↑ "Nash Finch Company Records | Elwyn B. Robinson Department of Special Collections". apps.library.und.edu. Retrieved 2015-06-15.
  16. 1 2 "Key events in the history of C.H. Robinson". Star Tribune. Retrieved 2023-06-01.
  17. ↑ "CHRW - C.H. Robinson Worldwide Inc Financial Results - CNNMoney.com". money.cnn.com. Retrieved 2015-06-15.
  18. ↑ Times, STAT (2023-01-04). "Scott Anderson appointed interim CEO of C.H. Robinson". www.stattimes.com. Retrieved 2023-05-30.
  19. ↑ "The 2015 Community Impact Awards". Archived from the original on 2014-09-25. Retrieved 2015-06-15.
  20. ↑ "Can C. H. Robinson Start Delivering Big Capital Gains Again?". Yahoo News. Retrieved 2023-04-18.
  21. 1 2 "C.H. Robinson to buy logistics rival Phoenix for $635 million". Reuters. 2012-09-25. Archived from the original on 2015-09-24. Retrieved 18 December 2013.
  22. ↑ "C.H. Robinson to Acquire Poland's Apreo Logistics". Transport Topics Online. 2012-09-20. Retrieved 2015-06-15.
  23. ↑ "Logistics firm C.H. Robinson big opportunity in India". www.freshplaza.com. Retrieved 2015-06-15.
  24. ↑ "A-B Names C.H. Robinson Non-Asset Based Carrier of the Year". Progressive Grocer. 2012-07-22. Archived from the original on 2015-02-20. Retrieved June 11, 2015.
  25. 1 2 3 "Who is C.H. Robinson, and what is it going to do with Freightquote? - Kansas City Business Journal". Kansas City Business Journal. Retrieved 2015-06-15.
  26. ↑ "C.H. Robinson's $635M buy". Star Tribune . Retrieved 2015-06-15.
  27. ↑ "C.H. Robinson launches Navisphere app | The Packer". www.thepacker.com. Retrieved 2015-06-15.
  28. ↑ "CH Robinson machine learning software could protect companies' supply chains from disasters". supplychaindigital.com. 2020-05-17. Retrieved 2023-06-05.
  29. ↑ Knight, Meribah (May 26, 2014). "You need it when? No Problem" (PDF). Crain's Chicago Business. Retrieved 11 June 2015.
  30. ↑ "Freightquote, C.H. Robinson deal weds tech savvy with scale - Kansas City Business Journal". Kansas City Business Journal. Retrieved 2015-06-15.
  31. ↑ Stinson, Jim (January 28, 2020). "Roadrunner Sells Distribution Service to C.H. Robinson for $225 Million". Transport Topics.
  32. ↑ Berman, Jeff. "C.H. Robinson's acquisition of Prime Distribution Services is a done deal". Logistics Management. Retrieved 2023-04-18.[ permanent dead link ]
  33. ↑ Staff, Fleet Owner (February 5, 2020). "CH Robinson agrees to buy Prime Distribution Services". www.fleetowner.com. Retrieved 2023-04-18.
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