Logistics Stocks Drop on AI Fears: CHRW, ULH, and RIME Hit Amid Automation Concerns

Logistics and freight stocks fell on Feb. 12 amid growing AI-related selling pressure. C.H. Robinson (CHRW) and Universal Logistics (ULH) traded sharply lower after Algorhythm Holdings (RIME) announced an AI platform it claims can scale freight volumes without adding headcount, citing a 4x improvement in workforce productivity. RIME shares surged as high as 79% before closing up 29%, while shares of Maersk (MAERSK-B.CO), UPS (UPS), and Hub Group (HUBG) also declined. The broader market reflected sector rotation: financials, real estate, and software shares were hit by similar AI-driven disruption fears. On Thursday, the Nasdaq Composite (^IXIC) fell 2%, the S&P 500 (^GSPC) lost 1.5%, and the Dow Jones Industrial Average (^DJI) dropped 1.3%. Nearly three-quarters of S&P 500 companies now identify AI as a material risk, up from 12% in 2023, according to a Conference Board study. As AI integration accelerates, volatility is spreading across multiple corners of the market.