AI logistics pioneer CH Robinson bullish after stock plunge

Algorhythm Holdings put out a statement saying its AI-enabled software platform helped customers scale freight volumes by up to 400% without additional employees.

The announcement precipitated a steep drop in the value of shares in CH Robinson – which has been at the forefront of widespread use of self-learning AI within its operations.

But the global logistics player appeared unconcerned about jitters in the market.

A CH Robinson spokeswoman said: “While perceptions of artificial intelligence are influencing recent market activity, CH Robinson has been a leader in AI for more than a decade and we believe AI will only continue to strengthen our performance and widen our competitive moat.

“Since 2023, our unique, disciplined approach to deploying the newest forms of artificial intelligence at scale has driven tangible business results.

“Lean AI is a combination of our operating model, our technology and our world-class logisticians. It has increased our productivity more than 40%, automated millions of shipping tasks, saved thousands of hours of work per day and lowered our cost to serve while delivering superior service.”

The company added that it had outperformed the freight market for eight consecutive quarters, possessed a strong balance sheet and an “investment-grade credit rating”.

The spokeswoman said: “Rather than being disrupted, our 120-year-old company is the disrupter – and we’re just getting started.”

Last month, RHA MD Richard Smith said companies investing in self-learning AI would have a distinct competitive advantage.

Citing CH Robinson as an example, Smith said: “The North American division alone receives around 600,000 rate quote enquires each year, historically, when these were handled manually only 60% to 65% were responded to, however by using agentic AI solutions the company can now respond to 100% of enquires with a response time of 32 seconds per quote.”