C.H. Robinson

We assess a moderate, multi‑factor moat anchored in scale, data and process excellence rather than regulatory or IP barriers. Network effects: moderate strength (65/100). Liquidity on both sides of the marketplace improves matching and service breadth as the network scales (83k customers, 450k contract carriers, ~37 million shipments).

Still, shippers multi‑source and carriers access many load boards, limiting winner‑take‑all dynamics. Switching costs: modest (50/100). Many large customers embed CHRW via Navisphere and growing direct TMS/ERP integrations, which reduce friction to switch but do not fully lock‑in. Cost advantage: solid and rising (70/100).

Scale procurement, dense carrier relationships, and Lean/AI automation reduce cost to serve and expand operating leverage versus smaller brokers; management cites sustained productivity gains and mid‑cycle operating margin targets of 40% (NAST) and 30% (Global Forwarding).

Intangibles/brand: above average (60/100) given century‑long relationships, cross‑border customs capability, and a leading Laredo/Mexico footprint. Efficient scale: limited (40/100); brokerage remains fragmented and competitive across lanes.

Weighted, these yield a composite moat score of ~61. Moat durability could erode if new digital platforms re‑commoditize matching or if asset‑based carriers deepen direct shipper relationships; the 2023 failure of Convoy underscores how scale and cash generation still matter in brokerage.