Air freight tonnage decreased 4% ‘in a volatile pricing environment’ while ocean container volume increased 6% in first-quarter 2019 financial results published today.
US freight forwarding and logistics giant Expeditors International has unveiled a mixed set of freight forwarding results in its first quarter (Q1) 2019 financial results published today, reporting an air freight tonnage decrease of 4% in “a volatile pricing environment” and a global market and that has seen falls of around 3%, while the group’s ocean container volume grew ahead of market expansion, increasing 6%, year on year (YoY).
Overall revenues increased 9% to $2.02 billion, while Net Revenues increased 3% to $654 million. And although Operating Income decreased 3% to $188 million, Net Earnings increased 3% to $140 million.
Jeffrey Musser, president and CEO, said the company was “pleased with our results in Q1 2019, especially when we look at the comparison period last year that produced so many records and set an extremely high bar.
He continued: “Customs brokerage and import services led the way this quarter on increased volumes and on-boarding new customers. Transcon, warehouse and distribution also posted solid gains on expanded business with current customers, as well as by winning new business.
“We increased the volume of ocean freight containers shipped by 6%, while also improving net revenue per container, particularly from exports out of North and South Asia. The air market was the only area that was challenged, particularly as customers reduced export volumes out of North Asia.
“I credit our air group for their efforts in a volatile pricing environment, and I thank everyone throughout our global network for their ongoing effort to handle the increase in volumes and business activity.”
Bradley Powell, senior vice president and CFO, commented, “Operating efficiency (operating income as a percentage of net revenue) dipped below 30% this quarter, due largely to lower air net revenues, as well as our continuing investments in people at the district level to handle the increase in volumes, and investments in technology and facilities.”
Source: Lloyd’s
