Expeditors International of Washington (EXPD) Status Update summary

Market conditions and supply chain trends

• Supply chain disruptions have become more frequent and impactful, with recent years seeing increased volatility and the need for greater resiliency in logistics operations.

• Demand growth is currently driven more by services than goods, but recent months have seen a rebound in non-durable goods and automotive sectors.

• Global manufacturing PMI has been below 50 for three consecutive months, indicating contraction, especially in consumer and intermediate goods.

• Inventory-to-sales ratios have stabilized at pre-pandemic levels, and transportation capacity, especially in air and ocean freight, has increased compared to 2019.

• Trucking and rail traffic in the U.S. have shown stability, with spot market rates and intermodal rail volumes remaining steady.

Customer and market insights

• Customers are increasingly focused on end-to-end visibility, reliability, and accurate data to inform supply chain decisions.

• There is a record number of RFIs and RFQs, with many companies exploring new sourcing markets and seeking resilient solutions.

• Southeast Asia is seeing significant infrastructure investment, with local teams and vendors closely monitoring U.S. political and economic developments.

• Customers with robust visibility solutions were able to respond more effectively to recent labor disruptions.

Solutions for visibility and control

• Total Container Management integrates carrier allocation, order management, and delivery management to enhance control and visibility.

• Carrier allocation tools allow for advanced planning and dynamic reallocation of shipments based on need-by dates and market disruptions.

• Order management solutions provide visibility from order inception through shipment, with automated prompts and analytics to monitor vendor performance and order changes.

• Delivery management offers centralized, predictive ETA tracking, appointment scheduling, and risk mitigation for demurrage and detention.

• Exception management dashboards tie together order and transportation data, enabling proactive responses to disruptions.