C.H. Robinson’s $900 Million Drop Trailer Business Surpasses Half a Million Loads on Its Way to Another Record Year

Rhea-AI Summary

C.H. Robinson, the fourth-largest drop trailer provider in North America, has moved half a million drop trailer shipments this year, heading towards a record-setting volume. The company's Drop Trailer Plus™ service is a $900 million business, representing over 10% of its truckload volume. C.H. Robinson is enabling over 2,800 shippers to expand their drop-trailer options, offering customized and flexible programs through its extensive carrier network.

The company provides drop trailer services in dry van, temp control, and flatbed modes, leveraging its relationships with suppliers, nearby drops, closing loops, and increasing utilization to optimize cost and service. C.H. Robinson's drop trailer service boasts 98.2% accuracy in predictive ETAs and offers advanced real-time visibility, providing stability for shippers who require dependable service.

Positive

• Reached half a million drop trailer shipments this year, heading towards a record volume
• Drop Trailer Plus™ service is a $900 million business, representing over 10% of truckload volume
• Serving over 2,800 shippers with customized and flexible drop trailer programs
• 98.2% accuracy in predictive ETAs for drop trailer service

Negative

• None.

Insights

Logistics Analyst

C.H. Robinson's drop trailer business is showing significant growth, with 500,000 shipments already moved this year and projections for a record-setting volume. The $900 million Drop Trailer Plus™ service line now represents 10% of the company's truckload volume, demonstrating its increasing importance in C.H. Robinson's portfolio.

The company's ability to leverage its vast carrier network for customized drop trailer solutions is a key differentiator. By offering flexibility in dry van, temp control and flatbed modes, C.H. Robinson can scale programs without compromising service quality or imposing premium costs. This adaptability is particularly valuable in the current logistics landscape, where capacity optimization is crucial.

The 98.2% accuracy in predictive ETAs and real-time visibility offered by C.H. Robinson adds substantial value for shippers, potentially reducing supply chain inefficiencies and costs. The company's strategy of utilizing existing supplier relationships, nearby drops and closing logistics loops demonstrates a sophisticated approach to maximizing network efficiency.

For investors, this growth in the drop trailer segment suggests C.H. Robinson is successfully diversifying its service offerings and capturing market share in a competitive sector. The company's ability to adapt historical strengths to modern logistics needs indicates strong operational execution and potential for continued growth in this $900 million business line.

The global logistics company is helping thousands of customers expand their drop-trailer options

EDEN PRAIRIE, Minn.--(BUSINESS WIRE)-- Global logistics company C.H. Robinson, the fourth-largest drop trailer provider in North America, has already moved half a million drop trailer shipments this year on its way to record-setting volume. In an industry that has historically considered drop trailer the domain of asset carriers, the 3PL is celebrating its 25^th year of offering the service.

“We pride ourselves on growing with our customers’ needs, and our growth in drop trailer is an absolute testament to that,” said Michael Castagnetto, President of C.H. Robinson’s North American Surface Transportation division. “Drop trailer has always been in our DNA. As early as 1905, our teams were strategically optimizing the drop-off and pick-up of wooden carts for merchants. Today, as a modern 3PL serving nearly every industry, we continue to be a leader in meeting our customers’ ever-evolving drop trailer needs.”

C.H. Robinson Drop Trailer Plus™ is a $900 million service line for the company, representing over 10% of its truckload volume. The service includes dry van, temp control and flatbed modes. Customers get access to C.H. Robinson’s trailer pool and the trailers of the largest network of carriers in North America.

“The reason we’re the No. 1 drop trailer provider for some of our largest shippers is that our breadth of carriers allows us to customize and flex a drop trailer program,” said Adam McDonough, C.H. Robinson’s VP for drop trailer. “We can offer more options for more drop trailer in more places because we’re not constrained by a narrow network. That flexibility allows us to scale a drop trailer program without the shipper having to pay a premium or sacrifice quality of service. So if you’re only considering the same traditional carriers for your drop trailer RFPs, you’re leaving capacity on the table.”

These are some of the ways C.H. Robinson is enabling over 2,800 shippers to do more drop trailer, while optimizing both cost and service.

• Existing supplier relationships: When C.H. Robinson already has a relationship with a supplier such as a tiremaker, the national retail chains, regional distributors and local stores receiving inbound shipments from the tiremaker can all benefit from the economy of scale provided by a drop pool. C.H. Robinson’s deep understanding of the tiremaker’s people, processes, and facilities also enhances efficiency.
• Nearby drops: Locations where C.H. Robinson already has a carrier dropping nearby can get excellent on-time performance when dropping for another C.H. Robinson shipper in the area.
• Closing loops: A C.H. Robinson carrier with regular runs from Pittsburgh to Philadelphia and Philadelphia to Baltimore could offer a shipper great drop trailer service at a competitive rate from Baltimore to Pittsburgh.
• Increasing utilization: A C.H. Robinson carrier with strength in a corridor but only 80% utilization on the backhaul could offer a shipper an attractive drop trailer rate to potentially lift that to 95%.

The scale of C.H. Robinson’s carrier network also provides stability for shippers who can’t risk tender rejections from providers without enough tractors, trailers or drivers in any given lane at a given time. C.H. Robinson offers dependable, consistent drop trailer service with advanced real-time visibility and 98.2% accuracy in predictive ETAs. For more information, go to chrobinson.com/droptrailer.

About C.H. Robinson

C.H. Robinson delivers logistics like no one else™. Companies around the world look to us to reimagine supply chains, advance freight technology and solve logistics challenges—from the simple to the most complex. Over 90,000 customers and 450,000 contract carriers in our network trust us to manage $22 billion in freight annually. Through our unmatched expertise, unrivaled scale and tailored solutions, we ensure the seamless delivery of goods across industries and continents via truckload, less-than-truckload, ocean, air and beyond. As a responsible global citizen, we make supply chains more sustainable and proudly contribute millions to the causes that matter most to our employees. For more information, go to www.chrobinson.com. (Nasdaq: CHRW)

CHRW-IR

View source version on businesswire.com: https://www.businesswire.com/news/home/20241017828383/en/

Maria Lettman

maria.lettman@chrobinson.com

Source: C.H. Robinson

FAQ

What is the value of C.H. Robinson's (CHRW) drop trailer business?

C.H. Robinson's Drop Trailer Plus™ service is a $900 million business, representing over 10% of its truckload volume.

How many drop trailer shipments has C.H. Robinson (CHRW) moved in the current year?

C.H. Robinson has already moved half a million drop trailer shipments this year, heading towards a record-setting volume.

What is the accuracy rate of C.H. Robinson's (CHRW) predictive ETAs for drop trailer service?

C.H. Robinson's drop trailer service boasts 98.2% accuracy in predictive ETAs.

How many shippers does C.H. Robinson (CHRW) serve with its drop trailer service?

C.H. Robinson is enabling over 2,800 shippers to expand their drop-trailer options through its service.