Expeditors International has reported its results for the third quarter of 2016. The company has recorded revenues of US$1,562.39m, with operating income amounting to US$167.26m. Both of these results reflect year on year declines, of 5.39% and 12.84% respectively, which were attributed to rate volatility.
Expeditors recorded a year-on-year revenue increase of 5.8% in its Customs brokerage and other services segment, which stood at US$212.79m, though Airfreight services (US$444.36m) and Ocean freight and ocean services (US$359.99m) noted declines of 4.27% and 13.48% over the same timeframe. Geographically, declines in revenue and operating profit were felt across all operating regions of the company.
Jeffrey S. Musser, President and CEO of Expeditors International, said, “We grew our business even as rates were rapidly adjusting to a very fluid marketplace and pressuring margins beyond what we would normally expect, “ adding, “We’ve managed similar cycles before and we know how to adapt. Typically, as in the most recent quarter, rates compress when volumes increase. In the year-ago third quarter, however, we grew volumes at the same time that our airfreight net revenue per ton was the highest in the company’s history. By comparison, in this most recent quarter of modest marketplace growth in volumes and a further slowdown in global trade, we shipped record volumes in both air and ocean. Not only did we move more freight this quarter, thanks to the hard work and dedication of our people, we continued to grow our business and gain market share in line with our strategic initiatives, which are focussed on quality growth over the long term.”
Source: Expeditors International
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