What is happening: The US freight forwarder Expeditors has announced boosts in Q3 revenue.
Revenue: They reported an 18% jump in nine-month revenue. This pushed net earnings up to 36%. Overall revenue was at $5.9B for the first nine months of 2018. Earnings were just below $439m. Q3 revenues were up 16%, above $2B. Q3 net earnings were at $163m, up 35%. In 2018 so far, air freight has brought in almost $2.4B. Customs brokerage brought in $1.9B, and ocean freight forwarding $1.6B.
What did Expeditors chief executive Jeffrey Musser say: “We generated record third-quarter profitability, with the highest net revenue and operating income in our history. [This resulted from us] continuing to win new business and grow volumes with existing customers in an unpredictable rate environment.”
“Rates have been particularly volatile, but we managed similar cycles throughout our history and are adept at making adjustments to deliver quality long-term growth. I commend our people for their exceptional efforts on behalf of our customers and our organisation. Carriers continued to take advantage of the supply and demand imbalance and sought opportunities to increase pricing in an effort to improve profitability. That presented a challenge, particularly in ocean, requiring that we work our strong relationships to secure space for our customers, while remaining disciplined on pricing.”
What did the latest Global Freight Forwarding report say: “China-US is still the company’s largest by revenue and tonnage. The company is working towards balancing the lanes it serves, but is still over-reliant upon this specific source of revenue.”