For the year ending December 31, 2020, Expeditors reported revenues increased by 23.7% to $10.1bn compared with 2019. Operating income also rose, by 22.7% to $940.4m.
Revenues in Q4 rose by 55.0% to $3.2bn as airfreight tonnage volume increased 10% and ocean container volume increased 19%. “We moved more freight in the fourth quarter of 2020 than in any other quarter in our history,” said Jeffrey S. Musser, President and Chief Executive Officer.
Musser continued, “Air buy and sell rates were elevated and volatile during the quarter, and supply and demand remained severely out of alignment, as demand for certain goods, particularly from North Asia, drove record-high air tonnage. Air capacity remained extremely tight, as passenger flights have not returned to anywhere near their pre-COVID-19 pandemic levels. We anticipate that air supply/demand and pricing conditions are likely to remain unsettled well into 2021. Our ocean services business also experienced significant marketplace imbalance during the quarter, as demand soared and volumes increased, particularly on exports from North and South Asia, which drove higher average buy and sell rates. In addition, port congestion from labour and equipment shortages have significantly disrupted sailing schedules. We expect the pressure on buy rates to remain elevated until those conditions subside.”
Two of the three segments saw revenues rose with Airfreight seeing huge revenue and expense increases, due to tight capacity and high prices as a result of the Coronavirus pandemic disrupting the market. Expeditors Airfreight services revenue rose significantly, up 63.3% year-on-year to $4.8bn. Operating expenses rose by 71.6% compared to 2019. Ocean freight and ocean services saw revenues reach $2.3bn, an increase of 6.1% year-on-year. Operating expenses for the segment rose by 9.2% to $1. 8bn. Customs brokerage and other services saw a decline in revenue, by -1.6% to $2.98bn to $3.03bn. The segment also saw its operating expenses fall to $1.7bn, a decline of -1.9%.
Geographically, over 2020, one of the seven regions saw revenues decline whilst some others saw enormous revenue increases. Other North America recorded a fall in revenues of -7.3% year-on-year to $328.4m. The US’ revenue rose to $2.8bn, up by 2.4% compared to 2019. The Middle East, North Africa and India saw revenues grow by 9.8% to $487.0m, as did Latin America by 4.0% to $156.2m. Asia Pacific and Europe also saw revenues rise significantly by 49.1% to $4.8bn and 20.6% to $15.4bn, respectively.
Source: Expeditors
