Description of Expeditors International Of Washington Inc's Business Segments
Expeditors International of Washington, Inc. is a global logistics company that provides a wide array of services in supply chain management. The company operates across several segments, each offering specialized products and services aimed at enhancing the efficiency of freight forwarding and logistics processes. Each segment is designed to meet diverse customer needs by leveraging partnerships with carriers and utilizing advanced technology.
1. Airfreight Services
Expeditors primarily operates as both a freight consolidator and an agent for airlines in its airfreight segment. The airfreight services include:
- Freight Consolidation: The company purchases cargo space on a volume basis from airlines, which allows it to offer reduced rates to customers. This consolidation not only makes shipping more cost-effective but also helps in optimizing routing.
- Individual Shipment Handling: For shipments that do not benefit from consolidation, Expeditors acts on behalf of airlines, efficiently forwarding individual shipments.
- Routing and Documentation: Expeditors provides customers with expertise in determining optimal routing, preparing requisite export and import documentation, and ensuring compliance with local customs procedures.
- Ancillary Services: The company arranges various ancillary services including packing, crating, insurance, and the negotiation of letters of credit, as well as assisting with export laws.
- Breakbulk Services: Expeditors handles the breaking down of consolidated airfreight lots and coordinates the distribution of individual shipments, generating revenue through commissions and service fees.
Ocean Freight and Ocean Services
This segment provides a range of ocean freight forwarding services including:
- Less-than-Container Load (LCL) and Full Container Load (FCL): The company specializes in consolidating LCL shipments from various vendors to fill up containers efficiently, thus reducing costs for customers who don’t have enough volume to book a full container. They also handle full container loads for clients with larger volumes.
- Non-Vessel Operating Common Carrier (NVOCC): Expeditors operates its subsidiary, Expeditors International Ocean (EIO), under this model, contracting with shipping lines to secure better rates and provide a variety of services to manage ocean transport.
- Expeditors Cargo Management Systems (ECMS): This proprietary system aids in ocean consolidation and allows high-volume customers to manage their shipping operations via a sophisticated software solution, streamlining access to data from the consolidation process.
- Ancillary Ocean Services: Similar to its airfreight operations, Expeditors offers additional services such as documentation preparation, insurance procurement, and consultation, which enhance the ocean freight experience.
Customs Brokerage and Other Services
Expeditors provides extensive customs brokerage services that include:
- Custom Clearance and Documentation: Assisting importers in preparing necessary documentation for customs clearance, calculating duties, and arranging for inspections.
- Value-Added Services: These include warehousing, inventory management, time-definite transportation, and product distribution that complement the customs brokerage function.
- Cross-Border Customs Services: The company provides customs clearance for rail and trucking operations, especially between the USA, Canada, and Mexico, ensuring compliance with necessary regulations.
- Tradewin Services: Through its wholly-owned subsidiary, Expeditors Tradewin, LLC, the company offers high-end customs consulting services, helping businesses navigate complex customs laws and compliance requirements.
Technology and Innovation
Expeditors embraces technology as an integral part of its operation to enhance efficiency and customer service:
- Global Operations Control Center: The company utilizes advanced tracking and management systems to oversee its operations globally, ensuring the timely delivery of shipments.
- Data Management and Analytics: By leveraging data, Expeditors can optimize supply chain decisions, forecast demand, and improve service delivery, ultimately adding value to their clients’ operations.
Conclusion
Expeditors International of Washington, Inc. stands out in the logistics and supply chain industry through its comprehensive suite of airfreight, ocean freight, customs brokerage, and technology services. With a focus on efficiency, cost savings, and customer satisfaction, the company uniquely positions itself to meet the shipping needs of businesses across various industries.
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