CHRWC.H. Robinson

Total revenues and direct costs. Global Forwarding total revenues and direct costs increased, decreased driven by higher significantly lower pricing and purchased transportation costs in ocean services services, in addition to lower volume increases across all in our ocean services. In 2024, ocean transportation revenues and direct costs were elevated due to global forwarding transportation services. The higher pricing supply chain disruptions, including the Red Sea conflict, which strained capacity and purchased transportation costs in elevated ocean services were freight rates. While short periods of rate volatility occurred during 2025, driven by the volatile market conditions in 2024 discussed in the market trends section above, which significantly impacted carrier capacity shifting trade policies, front-loading, seasonal factors, and led to increased carriers’ use of blank sailings, overall ocean freight rates have largely remained depressed as weak demand outweighed these pressures. Many of these same market dynamics contributed to declines in 2024. Additionally, total revenues and direct costs within our air freight services. During 2024, disruptions in the ocean freight market resulted in increased air freight tonnage in 2024, driven by ocean freight conversions in many trade lanes. These ocean freight conversions, coupled with and heightened ecommerce demand out of North Asia and stronger peak season volumes compared to 2023, elevated increased air freight costs volumes and pricing in certain trade lanes in 2024. The volatile market conditions in 2024 lanes. This contrasted with the comparatively weak demand, elevated capacity, consumer demand environment in 2025, which contributed to lower pricing and suppressed direct costs and lower volumes in air freight rates experienced in 2023. services.

We are subject to claims arising from our transportation operations. We use the services of thousands of third-party transportation companies in connection with our transportation operations. From time to time, the drivers employed and engaged by the motor carriers with which we contract are involved in accidents, which may result in serious personal injuries. The resulting types and/or amounts of damages may be excluded by or exceed the amount of insurance coverage maintained by the contracted motor carrier. We contractually require all motor carriers we work with to carry at least $750,000 in automobile liability insurance. We also require all contracted motor carriers to maintain workers workers’ compensation and other insurance coverage as required by law. Most contracted motor carriers have insurance exceeding these minimum requirements, as well as cargo insurance in varying policy amounts. Railroads, which are generally self-insured, provide limited common carrier cargo loss or damage liability protection, which generally up ranges from $100,000 to $250,000 per shipment. Although these drivers are not our employees and all of these drivers are employees, owner-operators, or independent contractors working for the contracted motor carriers, from time to time, claims may be asserted against us for their actions or for our actions in retaining them. Claims against us may exceed the amount of our insurance coverage or may not be covered by insurance at all. A material increase in the frequency or severity of accidents, liability claims, workers’ compensation claims, or unfavorable resolutions of claims could materially and adversely affect our operating results. In addition, significant increases in insurance costs or the inability to purchase insurance as a result of these claims could reduce our profitability. Our involvement in the transportation of certain goods, including but not limited to, hazardous materials, could also increase our exposure in the event one of our contracted motor carriers is involved in an accident resulting in injuries or contamination.

(1) Includes $3.7 million of net property and equipment for the Europe Surface Transportation disposal group, which is presented within assets held for sale on the condensed consolidated balance sheets as of December 31, 2024. Refer to Note 15, Divestitures, for further discussion related to the sale of our Europe Surface Transportation business.