Expeditors 2Q profit up 29pc to US$247.6 million, sales rise 27pc
SEATTLE's Expeditors International posted a 29 per cent year-on-year increase in second quarter operating profit to US$247
SEATTLE's Expeditors International posted a 29 per cent year-on-year increase in second quarter operating profit to US$247.6 million, drawn on revenues of $2.6 billion, up 27 per cent.
CEO Jeffrey Musser said the Covid outbreak has had a major impact on their business, retail, automotive, aviation, and energy sectors, reports Air Cargo News.
The air freight market was especially affected due to the grounding of passenger operations, which make up between 45 to 50 per cent of overall air cargo capacity.
'While volumes for all of our products were down, as we would have expected during such unprecedented conditions, our air freight revenue was much greater than anticipated. The air market has been particularly unsettled, with the cancellation of so many passenger flights limiting access to passenger belly space and requiring the increased use of charters to meet customer needs,' said Mr Musser.
'While air capacity has been tight, demand for shipping technology-related equipment, medical equipment and supplies, and other priority goods has been intense, creating a supply and demand imbalance and a spike in buy and sell rates,' said Mr Musser.
'Air freight buy and sell rates, which peaked in April and May and started to decline in June, remain highly volatile and continue to be unpredictable.' said Mr Musser.
Mr Musser said the company is doing everything they can to avoid layoffs since employee retention is critical for its long term success.