Expeditors continues to increase profits in 2018

Seattle-based forwarder and logistics services company Expeditors International released its 2018 results, which show that its high-margin profits we’ve come to expect in the last year continued to roll through the end of the year. Operating income increased 9 percent to US$217 million year-over-year for the fourth quarter, and 14 percent to $797 million for the full year.

Between its three segments – airfreight, customs brokerage and ocean freight – airfreight remained the largest contributor to operating revenue, while customs brokerage held its position as the largest contributor to operating income. Between 2017 and 2018, airfreight revenue increased 14 percent to $3.3 billion within the segment. Revenue from customs brokerage increased by a whopping 35 percent to $2.6 billion over the twelve-month period, while revenue from ocean freight increased by the smallest margin, about 7 percent, to $2.3 billion.

However, at the quarterly level, ocean freight grew at a faster pace. The company’s airfreight tonnage volumes increased 2 percent while ocean container volumes increased 10 percent, causing airfreight revenue to increase at a slower rate than ocean freight – about 6 percent – while ocean freight revenue increased by 18 percent, comparing Q4 2018 to Q4 2017.

“The air and ocean markets have continued to be highly unpredictable, with ongoing shifts in the balance of supply and demand requiring extra attention to address the needs of each individual customer,” president and CEO Jeffrey Musser commented.

He commented that air and customs brokerage were “particularly strong” and said that its ocean business was fueled by “growing volumes while adjusting sell rates.”

“We accomplished all of this in spite of ongoing rate pressure, as the industry evolves and carriers continue to test the supply/demand imbalance,” he said.