Expeditors International of Washington (EXPD) Update / Briefing Transcript

Summary of Expeditors International of Washington (EXPD) Update / Briefing Company Overview - Company Name: Expeditors International of Washington (EXPD) - Founded: 1979 - Business Model: Non-asset based organization - Global Presence: Over 340 office locations in 100+ countries with 18,000+ employees [9][10] Core Business Segments - Wholly Owned Subsidiaries: Includes Cargo Signal, Tradewind, and Expeditors Cargo Insurance Broker (ECIB) [10] - Specialization: Focus on marine cargo insurance and claims management [10][11] - Annual Claims: Handles over 27,000 cargo claims annually [11] Industry Insights - Incoterms: Discussed the importance of Incoterms in determining the responsibilities of buyers and sellers regarding cost, risk, and obligations during cargo transit [12][17] - Historical Context: Incoterms were first developed in 1936 and have been revised 8 times, with the next revision anticipated in 2030 [17][18] - Types of Incoterms: There are 11 total Incoterms, with 7 being multimodal and 4 specific to ocean transport [22][24] Key Points on Incoterms - Purpose: Incoterms help clarify the responsibilities of buyers and sellers, reducing misunderstandings [22][23] - Common Terms: Terms like EXW, FOB, DDP, and CIF are frequently used in international trade [18][24] - Limitations: Incoterms do not address legal aspects such as passage of title or revenue recognition [19][20] Risk Management - Carrier Liability: Carriers can limit their liability based on the mode of transport, with specific limits for ocean, air, and trucking [49][50] - Liability Limits: - International Ocean: $500 per customary freight unit - International Air: 22 SDR per kilo (approximately $30) - Trucking: $0.50 per pound [50][51] Notable Incidents - Container Loss: An average of 1,382 containers are lost at sea each year, with many never recovered [57][58] - Risk Factors: Factors such as packaging insufficiency and acts of God can exempt carriers from liability [59][60] Communication and Best Practices - Importance of Clarity: Emphasized the need for clear communication between buyers and sellers regarding responsibilities and terms [62] - Recommendations: Suggested having a copy of the Incoterms book for reference and understanding [45] Q&A Highlights - Common Questions: Addressed various questions regarding the application of Incoterms, including differences between terms like FCA and DDP, and the responsibilities of parties involved [63][64][68][70] - Follow-Up: Indicated that further clarifications would be provided for complex inquiries post-webinar [63][94] Conclusion - Webinar Purpose: Aimed to educate participants on the basics of Incoterms and their application in international trade, highlighting the importance of understanding responsibilities to mitigate risks [3][4][7]