CH Robinson wins 3PL' third quarter, news by Hebei Longsheng Metals and Mineral
| CH Robinson wins the 3PLs' third quarter, reinvests in growth The third party logistics (3PL) sector had a tough third quarter in 2018 from a profitability perspective. While the revenues of the top dozen 3PLs grew by 8.8% that was insufficient to prevent a drop in the group’s EBITDA margin to 9.7% from 10.6% a year earlier. That was the worst result since 1Q 2014 and reflected higher fuel and operating costs despite expanding volumes. Additionally 11 of the 12 3PLs delivered profitability below analysts’ expectations, with the exception of CH Robinson. The fourth quarter has begun with strong volume growth. U.S. seaborne import shipments for the sector were 12.1% higher than a year earlier. That was due to a 16.1% surge in volumes from China as shippers sought to preempt higher tariffs in January. CH Robinson may be reinvesting its higher profitability in building up its market share, shown by its U.S. seaborne inbound shipments having surged 21.1% higher than a year earlier in October. Other major gainers were OEC and Kerry with a 39.1% and 26.3% rise respectively, though a drop in China volumes in the new year may drag on them more than their peers. |
