Financial research concept

Freight Broker Purchased Transportation Cost

Purchased transportation cost is what a freight broker pays contracted carriers and other transportation providers to move customer freight.

By Lee BaileyPublished Sep 25, 2026

Research context

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Research date: Sep 25, 2026Use the dated article and cited sources for the definition, examples, and stated limitations.
Operating-model context: 19 connected conceptsPart of the reviewed Freight Brokerage & Forwarding Economics; issuer definitions remain distinct where disclosed.
Company examples: 1 reviewed companyRelationships reflect supported examples, not a normalized cross-company KPI ranking.

C.H. Robinson example
Why it matters
Investor use
Source
Part of the Freight Brokerage & Forwarding Economics
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Purchased transportation cost is the direct amount a freight broker or logistics provider pays third-party transportation providers to move customer freight.

For an asset-light intermediary, this is the central direct-cost line between gross customer billings and the broker's retained spread.

C.H. Robinson example

C.H. Robinson reported $12.235 billion of purchased transportation and related services expense in 2025, down from $13.720 billion in 2024.

The company works with motor carriers, railroads, ocean carriers, and air carriers rather than owning most of the transportation capacity itself.

Why it matters

Purchased transportation can move with:

spot and contract carrier rates;
fuel prices;
shipment volume;
modal mix;
length of haul;
ocean and air capacity; and
carrier procurement efficiency.

A lower cost line is not automatically positive if customer revenue falls even faster.

Investor use

Compare purchased transportation with total transportation revenue and Freight Broker Adjusted Gross Profit.

The economic question is the spread retained after buying capacity, not the absolute carrier bill in isolation.

Source

C.H. Robinson 2025 Form 10-K

Part of the Freight Brokerage & Forwarding Economics

Connect customer freight activity, purchased transportation, brokerage spread, surface-transport pricing, capacity signals, and forwarding volume and profit to understand asset-light logistics economics.

Browse the full operating model in Company Analysis →

Where this concept fits

Network activity, purchased capacity, and retained spreadCurrent relationship
Shipments managed, freight under management, and contract-carrier scale describe the activity and sourcing network. Purchased transportation is the principal direct capacity cost, while adjusted gross profit and adjusted gross profit margin show the spread retained after buying transportation.
Freight Broker Adjusted Gross Profit Adjusted Gross Profit Margin Contract Carrier Network Freight Under ManagementPurchased Transportation CostCurrent conceptShipments Managed
North American surface pricing, volume, and capacity
Truckload and LTL volume show transaction activity, service-line adjusted gross profit shows retained economics, and customer-versus-carrier linehaul changes frame the truckload pricing spread. Routing-guide depth adds a capacity signal by showing how far a managed load moves through preferred carrier options before acceptance.
LTL Adjusted Gross Profit Broker LTL Volume Growth Routing Guide Depth Truckload Adjusted Gross Profit Carrier Linehaul Cost per Mile Customer Linehaul Rate per Mile Broker Truckload Volume Growth
Global forwarding volume and adjusted gross profit
Ocean, air, and customs volume changes show forwarding activity, while the matching adjusted gross profit measures show whether retained economics move with or diverge from volume as carrier rates, trade conditions, and service mix change.
Air Adjusted Gross Profit Air Volume Growth Customs Adjusted Gross Profit Customs Volume Growth Ocean Adjusted Gross Profit Ocean Volume Growth

See It in Company Research

These companies are examples of how the concept is reported or discussed in public filings. Definitions can differ by issuer; these links open company research rather than a normalized metric comparison.

CHRWOpen operating-model research →19 of 19 reviewed concepts in Freight Brokerage & Forwarding EconomicsNetwork activity, purchased capacity, and retained spread6 of 6 bridge concepts supportedContinue through this bridge:Adjusted Gross Profit Margin Contract Carrier Network Freight Broker Adjusted Gross Profit Freight Under Management Shipments Managed

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