C.H. Robinson CEO says AI will drive freight brokerage consolidation

By Abhinav Parmar and Apratim Sarkar

Feb 23 (Reuters) – Dave Bozeman, chief executive of global logistics provider CH Robinson, dismissed a recent sell-off in the shipping industry tied to disruption caused by artificial intelligence, saying the race to adopt the technology will instead encourage consolidation.

CH Robinson’s shares posted their biggest single-day fall in nearly two years on Feb. 12 amid a broader sell-off in transport and logistics stocks driven by headlines about new AI-powered freight platforms that investors fear could disrupt traditional brokerage models.

The stock has rebounded somewhat since a 14.5% decline earlier this month. It fell 6.1% to $178.44 in afternoon trading on Monday.

The sale was triggered by AI technology company Algorhythm Holdings’ comment that its SemiCab platform helps customers scale freight volumes by 300% to 400% without increasing operational headcount.

In an interview with Reuters, Bozeman called the selloff in CH Robinson shares a “short-term reaction” and added that the company’s scale and large proprietary data set gave it an advantage that would be difficult and costly for rivals to replicate.

“We’re going to get into agency AI that will make us faster and better,” Bozeman added.

Expect more industry consolidation as smaller companies face challenges competing in an AI-driven market that requires large-scale data and deep domain expertise; These advantages are difficult to create quickly, even with fresh capital.

CH Robinson reported last month

AI-driven efficiencies that streamline operations and reduce manual processes across routine functions partially exceeded Wall Street forecasts. (Reporting by Abhinav Parmar in Bengaluru; Editing by Leroy Leo)