8-KOther Events

EXPEDITORS INTERNATIONAL OF WASHINGTON INC 8-K Report (Jun 24, 2004)

Filed June 24, 2004For Securities:EXPD

Summary

This 8-K filing from Expeditors International of Washington, Inc. (EXPD) on June 24, 2004, provides an update on the company's performance and outlook based on inquiries received up to June 15, 2004. The company expressed optimism regarding shipment trends, with operating income for May 2004 showing a significant increase of approximately 28% year-over-year. Both Asia and the Americas regions are performing strongly, with Europe showing steady improvement. Management indicated they are pleased with the results seen thus far in the second quarter. The filing also addresses market conditions, noting relatively stable airfreight rates and a slight increase in ocean freight rates sequentially from the first quarter of 2004. The company discussed the impact of fuel surcharges, stating they are generally passed on to customers with a potential short lag. Expeditors confirmed that container space issues in the Pacific trade lane had not drastically affected them as of mid-June, aligning with their internal expectations for the ocean environment.

Key Highlights

  • 1Operating income for May 2004 increased by approximately 28% compared to May 2003.
  • 2Asia and the Americas regions are performing particularly well, with Europe showing steady improvement.
  • 3Airfreight rates have remained relatively stable, while ocean freight rates have risen slightly since Q1 2004.
  • 4Ocean freight container counts were up 31% and airfreight tonnage was up 22% year-over-year in May 2004.
  • 5The company anticipates reporting its second quarter 2004 results before market open on August 3, 2004.
  • 6Expeditors' new North American transportation initiative's revenue will be recorded under 'Customs Brokerage and Other Services'.
  • 7The company believes the International Ship and Port Security code, effective July 1, 2004, will not have a meaningful impact on Expeditors.

Frequently Asked Questions

Expeditors was encouraged by its May 2004 results, reporting a 28% increase in operating income compared to May 2003. Asia and the Americas are performing strongly, and Europe continues to show steady improvement. While still having one month left in the second quarter, management expressed satisfaction with the trends observed so far.

As of mid-June 2004, airfreight rates have remained relatively stable. Ocean freight rates have seen a slight increase compared to the first quarter of 2004. Expeditors also noted that fuel surcharges can occasionally have a short lag before being fully recovered from customers due to implementation timing.

As of mid-June 2004, Expeditors stated that the container space situation in the Pacific trade lane had not drastically affected them, although they acknowledged this is a situation that can change quickly. The general supply/demand environment in ocean freight was in line with their internal expectations for this part of the year.

Expeditors expects to report its second quarter 2004 results before the market opens on August 3, 2004.