Expeditors International (EXPD) Q1 2016 Earnings

posted in: Earnings Call, Notes | 0

Expeditors International (EXPD) CEO Jeff Musser says global trading is weakening

“We knew that comparing our 2016 results to our record year in 2015 would be challenging, especially when considering the current headwinds from slowing global trade.”

There is excess shipping capacity, driving rates down 

“We delivered solutions to customers who navigated around and through issues in the U.S. West Coast ports, and in Q1 2016 we worked with carriers to adjust pricing in over-supplied air and ocean markets to maintain and grow profitable market share.”

Expeditors International (EXPD) CFO Brad Powell says customer base remains cautious 

“Our people performed very well as we adapted to a rapidly changing marketplace affected by slowing global trade and excess carrier capacity.  Many of our customers are being cautious about how to spend their logistics dollar, taking advantage of abundant capacity in search of lower rates where possible, and we are aligning ourselves to address their needs. While volumes and average sell rates in air and ocean were lower compared to both Q1 and Q4 2015, we continued to benefit from available ocean and air carrier capacity and favorable market buying opportunities.”