Profile: Expeditors International of Washington Inc (EXPD.OQ)
Expeditors International of Washington, Inc., incorporated on May 29, 1979, is engaged in the business of providing global logistics services. The Company’s services include air and ocean freight transportation and customs brokerage. The Company also provides additional services, including order management, time-definite transportation, warehousing and distribution, cargo insurance and logistics solutions. The Company operates service offices in Americas, including the United States (47), Other North America (10) and Latin America (15); Asia Pacific (42); Europe (50), and Middle East, Africa and India (22).
The Company provides airfreight services and acts either as a freight consolidator or as an agent for the airline, which carries the shipment. As a freight consolidator, the Company purchases cargo space from airlines on a volume basis and resells that space to its customers. The Company issues a House Airway Bill (HAWB) to its customers as its contract of carriage and separately receives a Master Airway Bill from the airlines when the freight is tendered. When moving shipments between points where the nature or volume of business does not facilitate consolidation, the Company receives and forwards individual shipments as the agent of the airline which carries the shipment. Airfreight services accounted for approximately 42% of the Company's total revenues for the year ended December 31, 2014.
In its airfreight operations, the Company receives shipments from its customers, determines the routing, consolidates shipments bound for a particular airport distribution point, and selects the airline for transportation to the distribution point. At the distribution point, the Company or its agent arranges for the consolidated lot to be broken down into its component shipments and for the transportation of the individual shipments to their final destinations. The Company delivers shipments from a Company warehouse at the origin to the airline after consolidating the freight into containers or onto pallets. Shipments arrive at the destination distribution point within forty-eight hours after delivery.
Ocean Freight and Ocean Services
The Company operates Expeditors International Ocean, Inc. (EIO), an Ocean Transportation Intermediary, also known as Non-Vessel Operating Common Carrier (NVOCC), which specializes in ocean freight services in trade lanes across the world. EIO also provides service, on a smaller scale, to and from any location where the Company has an office or agent. Its ocean freight services consist of three basic services: ocean freight consolidation (EIO), direct ocean forwarding and order management. Ocean freight services accounted for approximately 33% of the Company's total revenues for the year ended December 31, 2014.
The Company’s ocean freight consolidation is an NVOCC, EIO contracts with ocean shipping lines to obtain transportation for a fixed number of containers between various points. EIO handles full container loads for customers that do not want to contract directly with the ocean carriers and for those customers that prefer to supplement their carrier strategy with an NVOCC. EIO also solicits Less-than Container Load (LCL) freight to fill the containers and charges lower rates than those available directly from shipping lines. The Company issues a House Ocean Bill (HOBL) to customers as the contract of carriage and receives a separate Master Ocean Bill of Lading (MOBL) when freight is tendered.
The Company acts as an agent when the customer contracts directly with the steamship line. The carrier issues a MOBL directly to the customer, who employs the Company to create documentation, manage shipment information and arrange various services to facilitate the shipment of goods. The MOBL shows the customer as the shipper. The Company’s order management provides services, which manage origin consolidation, supplier performance, carrier allocation, carrier performance, container management, document management, destination management and purchase order (PO)/stock keeping unit (SKU) visibility through a Web-based application. Order management is available for various modes of transportation, including ocean, air, truck and rail.
Customs Brokerage and Other Services
The Company assists importers to clear shipments through customs by preparing required documentation, calculating and providing for payment of duties and other taxes on behalf of the importer, arranging for any required inspections by Governmental agencies, and arranging for delivery. The Company provides customs clearance services in connection with shipments it handles in its transportation services. The Company also provides other services, such as warehousing and distribution, time-definite transportation services (Transcon) and consulting services. The Company's distribution and warehousing services include distribution center management, inventory management, order fulfillment, returns programs and order level services. Transcon is a multi-modal product, which offers time-definite, intra-continental transportation solutions, often by ground and other specialty handling services. Customs brokerage and other services accounted for approximately 25% of the Company's total revenues for the year ended December 31, 2014.
Expeditors International of Washington Inc
1015 3rd Ave Fl 12
SEATTLE WA 98104-1184