Two major U.S. freight companies, C.H. Robinson and Landstar, saw their share prices tumble after releasing third-quarter earnings, as unusually high insurance claims costs overshadowed otherwise solid financial results and raised concerns over rising risk expenses in the freight sector.
What Happened
Landstar kicked off the issue on Tuesday afternoon with its third-quarter report showing heavier-than-usual claims charges. C.H. Robinson (NASDAQ: CHRW) followed with earnings that, while less specific on individual claim items, indicated abnormally high claims during the quarter.
By the close, C.H. Robinson shares fell 11.14% to $127.60, well below the July 22 high of $210.33; Landstar dropped 17.76% to $138.80, compared with its 52-week high of $228.46 on June 8.
On the analyst call, C.H. Robinson CFO Damon Lee said full-year SG&A expenses are expected to be $585–590 million, up from a prior estimate of $540–580 million, primarily due to higher claims expenses. The company typically benchmarks total insurance and claims costs at 50 basis points of gross revenue and remains below that level year to date.
Background
Over the past six months, concerns about rising insurance costs in U.S. freight have intensified. Expanded broker liability exposure from related court rulings and a hefty verdict against C.H. Robinson have made insurance and claims a key risk factor for investors. Although both companies stressed that insurance costs have limited financial impact, the market is increasingly sensitive to cost uncertainty.
Impact on Shippers
For Chinese cross-border sellers using U.S. truck delivery and last-mile services, rising insurance and claims costs at freight companies could indirectly push up transport rates, especially for high-value or special-category goods, where carriers may scrutinize insurance coverage and claims terms more strictly. In terms of transit times, if carriers tighten capacity or adjust routes for risk control, some regional delivery schedules may be slightly affected. Customs clearance itself is not directly impacted, but shippers should pay closer attention to liability allocation and insurance clauses in transport contracts.
Recommendations
Shippers are advised to confirm the insurance coverage and claims process of last-mile carriers with their logistics providers in advance, and consider additional cargo insurance for high-value goods. When signing transport contracts, clarify liability limits and claims deadlines to avoid disputes arising from carriers' internal cost adjustments. Also monitor the 2027 insurance cost updates expected in mid-to-late December to adjust logistics budgets accordingly.