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The global logistics industry has weathered faltering shipment volumes in the last few quarters, as high inflation and fears of an impending recession have made consumers wary about spending.
As a result, prices for ground transportation and global freight forwarding have declined pushing firms to cut back on supply to match lower demand.
“With lower available demand, the competition for volume is intense, and shippers are looking for stable and innovative logistics partners,” interim Chief Executive Officer Scott Anderson said in a statement.
Supply chain disruptions and port logjams have also pressured earnings of companies like C.H. Robinson and J.B. Hunt Transport services Inc.
C.H. Robinson’s revenue plunged about 32% to $4.61 billion, missing analysts’ average expectation of $4.82 billion, according to Refinitiv data.
The Minnesota-based company reported an adjusted profit of 98 cents per share for the first quarter ended March 31, compared with analysts’ average estimate of 99 cents per share.
