Expeditors International Sees Increasing Customs Brokerage Revenues, Costs
Revenue from customs brokerage services at Expeditors International rose 8 percent in 2014 over the previous year to over $1.6 billion due to “increased volumes from existing and new customers,” according to the company’s annual 10-K report recently filed with the Securities and Exchange Commission (here). However, the company only saw a 4 percent increase in net revenue from customs brokerage services due to a 12 percent increase in brokerage-related expenses in 2014, it said.
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Expeditors’ margin percentage on customs brokerage services declined “primarily as a result of higher import costs and lower yields in time-definite Transcon services,” said the report. “Customers continue to seek out customs brokers with sophisticated computerized capabilities critical to an overall logistics management program, including rapid responses to changes in the regulatory and security environment,” it said. Expeditors told investors that “international air and ocean freight forwarding and customs brokerage are intensely competitive and are expected to remain so for the foreseeable future.