Global logistics firm Expeditors International of Washington reports that airfreight revenue declined by 10.1 percent in 2012. The Seattle-based company reported overall revenues were down by 3 percent compared to 2011. Expeditors reported 2012 airfreight revenues of $2.6 million compared to $2.89 million in 2011.
“We obviously would have liked better results for the annual 2012 and fourth quarter, not withstanding 2012 was our third most profitable year on record,” said Peter J. Rose, chairman and CEO. “The market has been challenged throughout the year by air carriers reducing capacity to optimize their pricing and load factors as market volumes declined, primarily in the hi-tech and computer industry, traditionally among the prime users of airfreight space.”
Rose said that as airfreight tonnage spiked during the latter part of the fourth quarter, carriers imposed rate increases so quickly that Expeditors was unable to commercially adjust its corresponding sell rates to avoid temporary yield declines. However, he said the company remains efficient and profitable with a strong cash flow and an operating margin just under 30 percent.
“We have a balance sheet as solid as the Rock of Gibraltar, abundant cash and the wherewithal to make strategic investments to increase growth and continue technological enhancements,” Rose said.