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Yahoo
2 days ago
- Business
- Yahoo
Trump's latest tariffs part of ‘new normal' for retailers, manufacturers
This story was originally published on Supply Chain Dive. To receive daily news and insights, subscribe to our free daily Supply Chain Dive newsletter. Retailers and manufacturers are coming to terms with the reality of heightened tariffs from the Trump administration even as they warn of price increases and seek exemptions. President Donald Trump signed an executive order last week to implement a slew of country-specific tariffs on numerous trading partners, starting Aug. 7. The latest directive has been met with pushback as well as resignation that navigating higher duties is now a permanent part of doing business. 'The reality is that tariff volatility has become the new normal. And companies are increasingly recognizing this shift, adjusting not only their short-term tactics, like frontloading or limiting imports to essentials, but also rethinking long-term strategies,' said Mike Short, president of global forwarding at C.H. Robinson Worldwide, in emailed remarks. Institute for Supply Management CEO Thomas Derry struck a similar tone during an Aug. 1 press call, noting that after months of uncertainty, recent moves from the White House provide some level of clarity. 'Which is only a good thing for manufacturing,' Derry said. 'We're going to have to live with tariffs now, but to a large degree, we understand where they're going to be.' A clearer picture of the tariff landscape will still create short- and long-term challenges for many industries, according to trade groups such as the National Retail Federation and the National Restaurant Association. 'Tariffs are taxes paid by U.S. importers and are eventually passed along to U.S. consumers,' said NRF EVP of Government Relations David French in an Aug. 1 statement. 'These higher tariffs will hurt Americans, including consumers, retailers and their employees, and manufacturers, because the direct result of tariffs will be higher prices, decreased hiring, fewer capital expenditures and slower innovation.' Price hikes may be inbound Larger retailers have generally 'held the line' when it comes to pricing despite new tariff announcements, according to French. For example, Home Depot in May said it did not plan to increase prices in response to levies, while Costco CFO Gary Millerchip said the company would avoid raising consumer costs for certain staples like produce. In contrast, some manufacturers, such as Stanley Black & Decker, have already implemented price hikes. The new tariffs set to go into effect Thursday could push more retailers to make changes to their pricing structures, with Walmart CEO Doug McMillon saying in May that higher tariffs would result in higher prices. The ISM's Derry indicated the manufacturing sector was also increasingly evaluating the need to raise prices. 'We haven't seen a lot of that to date, but it's now something that's being actively mentioned,' Derry said. Restaurants may be forced to raise prices as well as new tariffs take hold, including those on trading partners key to the food supply chain, such as Canada, Brazil and the European Union. 'Although we are still evaluating the full impact of these announcements, it is evident that these tariffs will increase the cost to access many important menu products,' said National Restaurant Association President and CEO Michelle Korsmo in an Aug. 1 statement. 'With restaurants operating on very tight margins, many operators may have no choice but to increase menu prices, something they are reluctant to do, because we know Americans may have to make the choice to dine out less frequently if prices go up.' Restaurants seek exemptions In a July 29 letter to U.S. Trade Representative Jamieson Greer, the NRA said a 30% tariff on food and beverage products from Mexico and Canada would cost the domestic restaurant industry $15.16 billion. Currently, imports from Canada and Mexico that do not comply with the United States-Mexico-Canada Agreement are subject to tariffs of 35% and 25%, respectively. USMCA-compliant goods are not subject to tariffs. However, no such exemption currently exists for products from trading partners like Brazil and the EU. 'We strongly advocate for exempting food and beverage items from tariff negotiations, and ensuring USMCA-compliant goods remain exempt during ongoing talks with Mexico and Canada,' Korsmo said in her statement. Prepping for more change Beyond seeking exemptions and potentially raising prices, companies are redesigning their supply chains to be adaptable against current and future tariff measures. 'The conversation has evolved beyond a simple 'China +1' or '+2' diversification model,' C.H. Robinson's Short said. 'What we're seeing now is a more intentional, tiered sourcing hierarchy that prioritizes geopolitical stability, business continuity, and cost efficiency.' But not all companies are equipped to make the type of supply chain shifts needed to compete in such a volatile trade environment, with many smaller businesses feeling intense pressure from U.S. tariffs. 'We have heard directly from small retailers who are concerned about their ability to stay in business in the face of these unsustainable tariff rates,' the NRF's French said. The pressure from levies on businesses of all sizes may intensify in the months ahead, particularly as the U.S. continues trade negotiations while conducting Section 232 investigations into pharmaceuticals and semiconductors. "My hope is that now that tax and trade policy are largely settled, we'll begin to see an uptick, but there is still much work to do,' said Alliance for American Manufacturing President Scott Paul in a statement. Recommended Reading Trump's tariffs: Tracking the status of international trade actions
Yahoo
2 days ago
- Business
- Yahoo
Opposing strategies put brokerages on top
The recent earnings reports from C.H. Robinson and RXO provide a unique look into how two prominent players in the freight brokerage industry are navigating a challenging market. While both companies have faced similar market conditions, each has adopted unique strategies that reflect different priorities and approaches to maintaining profitability and growth. C.H. Robinson reported a boost in profitability despite a drop in total revenue, attributed to the divestiture of its European Surface Transportation business. Their adjusted operating margin saw a notable increase, rising to 31.1%, a significant leap from earlier periods. Additionally, productivity gains have been significant at C.H. Robinson, as evidenced by an 11.2% reduction in headcount while maintaining a steady revenue stream. C.H. Robinson remains focused on increasing efficiency and effectiveness through a leaner workforce and the implementation of advanced technologies, such as agentic AI. On the other hand, RXO has embraced a growth-oriented strategy, particularly evident in its Less-Than-Truckload (LTL) operations. While their revenue experienced a noteworthy increase compared to the previous year, RXO's gross margins declined slightly from 19% to 17.8%. Despite the compression in margins, RXO's decision to invest heavily in its LTL segment has paid off, with volume growth soaring by 45% year over year. This strategic focus on LTL is seen as a key driver for their future profitability due to its stable EBITDA contributions across market cycles. RXO has successfully leveraged technology to improve productivity and reduce costs, aligning with its overarching strategy to scale profitably. When directly comparing the performance of the two companies, each showcases distinct strengths in particular areas. C.H. Robinson has excelled in maintaining profitability by reducing personnel costs and maintaining a sharp focus on technology to navigate the freight market. On the other hand, RXO's strategy has been characterized by aggressive growth in specific segments and has shown an ability to adapt rapidly to new market opportunities, as seen in their expanding LTL business. Both companies have emphasized the role of technology in gaining a competitive edge, yet their implementations differ. C.H. Robinson continues to capitalize on its tech stack to differentiate itself in the marketplace. By doing so, it manages to weather market fluctuations while enhancing productivity internally and externally. Meanwhile, RXO pursues technological integration through acquisitions, such as the merger with Coyote Logistics, to streamline operations and gain efficiency, which has enabled them to improve brokerage margins incrementally despite a tough market. The opposite approaches offer lessons in resilience during uncertain economic times. C.H. Robinson's focus on internal productivity and efficiency contrasts with RXO's strategy of expansion and technological integration for scaling operations. Both paths have yielded tangible benefits, but the overall success will depend largely on how these strategies align with future market conditions. Leadership perspectives have become the North Star for each company's future guidance. At C.H. Robinson, CEO Dave Bozeman has been leading through a phase of consolidation, emphasizing a disciplined reduction in headcount without compromising operational capabilities. This positions C.H. Robinson to potentially capitalize quickly on any market upturn. RXO's Drew Wilkerson, on the other hand, is navigating the company through a period of expansion, particularly in sectors like LTL that he believes could offer sustained growth and less volatility compared to traditional freight segments. Both companies are giants in the 3PL and freight broker industry. They represent a broader picture of what others in the space are dealing with, just without the over $1 billion in revenue on a balance sheet. Q2 earnings season has continually shown that those getting creative with solving problems, adopting new technology, and focusing on efficiency remain at the head of the pack. The post Opposing strategies put brokerages on top appeared first on FreightWaves. Sign in to access your portfolio
Globe and Mail
4 days ago
- Business
- Globe and Mail
C.H. Robinson to Participate in Deutsche Bank 2025 Transportation Conference
C.H. Robinson (NASDAQ: CHRW) announced that the company will participate in a fireside chat at the Deutsche Bank 2025 Transportation Conference on Tuesday, August 12, 2025, at 1:00 p.m. Eastern Time. A live webcast of the fireside chat discussion will be available at A replay of the webcast will be available within 24 hours following the live event. 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. 83,000 customers and 450,000 contract carriers in our network trust us to manage 37 million shipments and $23 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, visit us at (Nasdaq: CHRW).
Yahoo
4 days ago
- Business
- Yahoo
Nothing but higher numbers in Expeditors' quarterly earnings report
Expeditors International turned in a second quarter earnings performance that saw almost all key metrics higher than a year ago. The company's revenues at $2.65 billion were up 9% from a year earlier, while its cost of transportation and other expenses rose 7%. That difference helped contribute to an 11% rise in operating income to $650.8 million, up from $575.7 million. Its year-on-year comparison for the amount of freight moved was higher across the board. Expeditors (NYSE: EXPD) does not disclose actual tonnage, but it does report rates of growth or decline. Both air freight and ocean freight kilos moved for the quarter were up 7% from the second quarter a year earlier. For air freight, the month-by-month increases were 9% in April, 4% in May and 7% in June. For ocean freight measured in 40-foot equivalent units, the gains were 12%, 7% and 4%, respectively. Expeditors does not hold a conference call with analysts. But in his comments in the company's earnings statement, CEO and President Daniel Wall sounded similar to the types of statements made by C.H. Robinson on their earnings call, citing changes in operations as the basis for the strong performance in the quarter. ''Throughout the Expeditors global network, we are seeing the positive impact of our strategic initiatives to maximize operational excellence,' Wall said in the statement.'Our focus on growth and execution puts us in a strong position to quickly adapt to this highly unpredictable environment. We are working with each of our regions and districts to increase efficiency and further optimize customer service to drive organic growth and boost profitability.' Net earnings per share were up 8% to $1.34 per share. According to SeekingAlpha, that number beat Wall Street consensus by 10 cents per share. The total revenue figure of $2.65 billion was $200 million above consensus. Stock market reaction is quiet There was little reaction to the earnings in trading Tuesday. At approximately 3:20 p.m. EDT, the decline in Expeditors stock was about 0.75% to $116.02 on a day when the S&P 500 at that time was down about 0.4%. Despite Expeditors being at the forefront of international trade and the impacts from tariffs, its stock price now isn't that much different that it was a month ago (-1.9%), three months ago (+3.9%) and a year ago (-4.2%). The 52-week low was $100.47 back in April; the 52-week high was $131.59 in September. Even in an earnings report where the numbers looked solidly higher, Wall's statement said average buy and sell rates, in the air and on the water, 'remained highly volatile.' Expeditors processed a 'substantial increase' in customs clearances, and they '(required) greater skills as they have become more complex' coming alongside the increase in volumes. Tariff-driven activity a factor Expeditors did see 'pull-forward' business, particularly in its air freight activities. 'Capacity remained tight despite new government limits on de minimis shipments, and particularly as customers sought to ship technology and other high-value inventory ahead of trade deadlines,' Wall said. Getting freight on the water ahead of tariffs also affected Expeditors' business, Wall said. And ocean freight was impacted as volumes grew, 'particularly exports out of South Asia, as customers relocated sourcing to that region and moved freight in advance of extended tariff deadlines.' But while air capacity may have been tight, that was not the case with ocean freight, according to Wall. 'Ocean rates softened throughout the quarter, with demand unable to match increased ocean capacity,' he said. Although C.H. Robinson (NASDAQ: CHRW) is only tangentially a direct competitor, both it and Expeditors share two key aspects: they are both considered 3PLs, and they are both dividend aristocrats, having increased their dividend annually for at least 25 consecutive years. But one difference in the companies is that while C.H. Robinson is shedding a significant number of employees–down 17.4% from the second quarter of 2024 to the corresponding quarter of 2025–the headcount at Expeditors is rising. It was up to 19,666 employees from 18,463 a year ago, for a gain of 6.5%. More articles by John Kingston Each driver's payout in Lytx Illinois biometrics case will be between about $650 and $850 Averitt pay increase could be a sign of some acceleration in driver wages Sequential numbers at diversified trucking operator TFI International may mark a turnaround The post Nothing but higher numbers in Expeditors' quarterly earnings report appeared first on FreightWaves. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
CP Group Announces Over 47,000 SF of New Leasing at Cumberland Center II in Atlanta
Premier office tower adds five new tenants across logistics, pharmaceuticals, financial services, and more ATLANTA, August 05, 2025--(BUSINESS WIRE)--CP Group, a prominent owner-operator of office properties throughout the Sunbelt, today announced that it has executed over 47,000 square feet of leasing activity at Cumberland Center II – a 421,000-square-foot, 17-story, Class A office tower located in Atlanta. Shop Top Mortgage Rates Your Path to Homeownership A quicker path to financial freedom Personalized rates in minutes Cumberland Center II sits in the heart of the Cumberland-Galleria submarket, one of Atlanta's most established office hubs. Recent property upgrades and the addition of newly completed premium, move-in-ready spec suites designed for flexibility have contributed to a wave of leasing activity, bringing five new tenants to the building: C.H. Robinson, a logistics operations firm, signed a lease for 17,300 square feet of office space, relocating and expanding from its previous office in Downtown Atlanta. Tim Wright of Cushman & Wakefield represented the tenant. Mikart, a pharmaceutical manufacturing company, signed a lease for 13,200 square feet of space for a new office in Atlanta. CBRE's Ryan Hudson represented the tenant. Young Management and Consulting, a professional services provider, signed a lease for a nearly 5,000-square-foot spec suite to relocate from its current office in Cumberland-Galleria. Austin Donaldson & Corey Ferguson of T. Dallas Smith represented the tenant. Applied Economics, a financial services firm, signed a lease for a 3,200-square-foot spec suite, relocating from another office in Cumberland-Galleria. Henry Kreimer & Dan Granot of Savills represented the tenant. Setty, an engineering consulting firm, signed a lease for a 2,300-square-foot spec suite for its new Atlanta office. Jody Selvey & Meredith Selvey of Colliers represented the tenant. JM Huber, a national producer of consumer and industrial products, expanded by adding a 6,200-square-foot spec suite to their building footprint, totaling over 100,000 square feet. Andy Lechter of Savills represented the tenant. Jeff Bellamy and Brooke Dewey of JLL represented the landlord in each transaction. "We are thrilled to welcome these companies to Cumberland Center II. These new leases reflect the sustained demand for highly amenitized, strategically located office environments," said Scott Barr, Senior Vice President at CP Group. "Cumberland Center II continues to draw high-caliber tenants seeking an accessible and quality work environment in one of Atlanta's most desirable submarkets." CP Group recently completed a major capital improvements program that included a lobby renovation as well as the addition of a tenant lounge and 100-seat conference facility. Other amenities at Cumberland Center II include on-site car wash services, an ATM, and access to fiber, T1, and cable connectivity. Additionally, CP Group has constructed 50,000 square feet of spec office suites, ranging from 2,600 to 9,700 square feet, as part of its 'worCPlaces' flexible workspace offering. This program offers tailored, move-in-ready suites designed for companies seeking flexible, scalable office space that can expand with their teams. Due to the program's success, the firm has another 25,000 square feet planned for the project, which is expected to be completed by the end of the year. Cumberland Center II offers unobstructed skyline views and easy access to I-75 and I-285, with a diverse array of dining, entertainment, and lifestyle amenities nearby, including Truist Park, The Battery, Cobb Galleria Convention Center, and the Cobb Energy Performing Arts Centre. To learn more about the office tower, visit: About CP Group Founded in 1986, CP Group is a vertically integrated commercial real estate firm and value-add investor with deep market knowledge across the Sunbelt. The firm has acquired, repositioned, and operated over 170 office and mixed-use properties, totaling more than 64 million square feet and valued at over $8 billion. The firm applies its market expertise and integrated operations to deliver experience-driven environments that support tenant retention and maximize asset value. CP Group maintains offices in Atlanta, Boca Raton, Dallas, Denver, Jacksonville, Miami, and Washington, D.C. For more information, visit View source version on Contacts Media Contact: Jordan Rankin, Antenna Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
