Expeditors sees operating income fall, despite surge in volumes

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Despite volume surges of 16% (air freight) and 7% (ocean freight), rate volatility saw Expeditors face a fall in operating income of 4% for the first three months of 2017, to $146m. First-quarter revenue increased 9% year-on-year to $1.5bn, but president and chief executive Jeffrey Musser said the dip in profitability was largely attributable to ongoing rate pressures.

“Over the long term, we expect this rate volatility to subside and that we will return to more historical pricing patterns,” added Mr Musser. “In the meantime, we continue to refine our processes and carefully execute against our strategy to position our company for further growth.”