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Investment Thesis
Global freight rates continue to incur volatility and have stretched back towards 2022 highs. The containerized freight index shown in Figure 1, has lifted to 3,379 points from a range of 1,000 leading into the year.
The last time this occurred in 2022, those in the air freight and marine logistics industries saw tremendous repricing And managed to return mouthwatering sons of capital to their shareholders by way of dividends and buyback.
This is a highly competitive industry where everything is priced on the margin and those with either 1) production/pricing advantages (and therefore higher volume) or 2) differentiated business models (and therefore higher margins) are typically the winners.
Figure 1.
Trading Economics
Expeditors International of Washington, Inc. (NYSE:EXPD) is a global logistics services provider that is positioned at strategic points along the logistics value…
