Expeditors has more than trade war to worry about , news by Hebei Longsheng
| Expeditors has more than trade war to worry about Freight forwarder Expeditors International suffered a 0.8% year over year decline in revenues in 3Q. A range of "ongoing trade disputes that extend well beyond just the United States and China" took a toll on the group’s performance according to CEO Jeffrey Musser. There’s likely to be a company specific component though. Airfreight revenues dropped 14.0% year over year whereas data from IATA shows an average 3.9% decline for the industry as a whole for the July to September period. Similarly, ocean freight revenues were unchanged. U.S.-inbound containerized traffic handled by the firm fell 7.3% year over year in 3Q, due largely to a 16.6% slide in traffic inbound from China. Shipments from Asia ex-China only rose by 2.6%, while those handled by DSV-Panalpina jumped 24.0% higher and volumes handled by CH Robinson rose 7.8%. The reduced volumes may reflect a focus on profits over market share though. Expeditors’ EBITDA-to-revenue ratio rose to 10.6% in 3Q from 10.4% in the same period a year earlier. |
