C.H. Robinson's CEO sees potential in Trump tariffs and AI.

• As Dave Bozeman begins his first investor day as CEO of C.H. Robinson, he must address a freight recession, the possibility of increased tariffs, and the revival of a century-old logistics company.
• The company's executives will reveal new financial objectives, address concerns regarding their transition to a streamlined business model, and provide insights on the current market climate, including the potential effects of President-elect Donald Trump's proposed tariffs.
• CNBC reported that Dave Bozeman, CEO of C.H. Robinson, stated that the freight must still be moved, but it may start from a different location, and they will still be there to transport it.

As Dave Bozeman begins his first investor day as CEO of , he must address a freight recession, the possibility of increased tariffs, and the revival of a century-old logistics company.

"Bozeman stated in an exclusive interview with CNBC ahead of the company's investor day on Thursday that they have already begun executing their vision and will focus on growing market share and expanding overall operating margins."

On Thursday, the shipping company's executives will reveal new financial goals, address concerns about their transition to a streamlined business model, and discuss the possible effects of President-elect Trump's proposed tariffs on the industry.

The imposition of 60% tariffs on goods from China and 25% tariffs on goods from Mexico and Canada could significantly affect C.H. Robinson, a global logistics company that transports goods for nearly 100,000 clients.

C.H. Robinson's primary business segments include global forwarding, commonly known as freight brokerage between the U.S. and other regions, and North American surface transportation, which mainly involves transporting freight over land.

According to analysts, C.H. Robinson is one of the top three carriers on the China-U.S. freight lane, while the company claims to transport approximately 10% of the freight on the U.S.-Mexico lane.

"We will still move that freight, regardless of the tariff's impact on pricing. The freight may start at a different point, but we will still be there to transport it."

In November, Citi transportation analyst Ari Rosa upgraded C.H. Robinson to a buy rating. He believes that tariffs are causing a short-term increase in freight demand, but agrees with Bozeman that, in the long term, the company has the ability to manage the impact of potential tariffs.

"Rosa stated to CNBC that their global forwarding business is highly exposed to China, but she believes their diversified business can handle tariffs."

New era

At Thursday's investor day, technology will be a key topic, with a focus on C.H. Robinson's partnership with and its use of Azure AI.

Bozeman stated that the implementation of AI was done aggressively and has greatly impacted our business, especially in terms of scale. He added that although the partnership with Microsoft has been beneficial, most of the work is done in-house.

"We have been deploying 10,000 email quotes per day via large language models, and our engineers have been responsible for creating these models. I am pleased with the productivity we have achieved using this technology," Bozeman stated.

"We can provide quotes to customers in under two minutes in a conversational manner," he stated. "This enables our team to focus on problem-solving and executing solutions with our customers, rather than wasting time on routine tasks."

Christian Wetherbee, a Wells Fargo analyst, upgraded C.H. Robinson stock in a note, stating that there is a unique opportunity for earnings to increase through 2027 due to improved execution, which will result in share gains and margin expansion.

Bozeman's primary objective for C.H. Robinson is to adopt a new lean operating model that emphasizes continuous improvement and eliminating non-value-added activities and inefficiencies.

A lean model is used at all companies where Bozeman has served as a top executive.

The rise in C.H. Robinson shares has exceeded the Dow Jones Transportation Average's increase this year.

"Bozeman stated that he is establishing a new company and culture, which will be a market leader and an easy investment opportunity."