C.H. Robinson CEO sees more freight broker consolidation as diesel costs bite

Bozeman said C.H. Robinson aims to be a consolidator, citing the growing importance of scale and leverage. He said higher diesel prices have pushed small carriers to a “stress point,” forcing some capacity out of the market, and freight rates should remain elevated into the holiday season.

Bozeman said RXO fits C.H. Robinson’s target profile, with strong gross margins and about $6.5 billion in business but weak operating margins. C.H. Robinson plans to lift RXO’s margins to its own levels within two years and add last-mile and expedited services.

Bozeman said asset-light C.H. Robinson is largely insulated from diesel costs, which he called “very, very manageable.” He said higher fuel and insurance costs will ultimately be passed on to shippers and consumers. The U.S. Energy Information Administration raised its oil price forecasts for this year and next, citing rapidly falling global inventories and tight diesel markets amid the Iran war.