Deals and Trade War Ahead, Stability Behind for Freight Forwarders — Panjiva


Deals and Trade War Ahead, Stability Behind for Freight Forwarders

Corp - Forwarders 157 Earnings 365 Global 724 Mergers 200 Mode - Containerized 1007

The freight forwarders’ 4Q earnings reports, which continue with CH Robinson on Jan. 29, could include the slowest rate of revenue growth – at 6.6% year over year – since 2Q 2016 according to consensus analyst estimates. Profitability is expected to stabilize with an average EBITDA margin of 10.7%, though UPS, Expeditors and K+N could see declining profitability.

The outlook for the sector will hinge on two factors. First is the impact of the U.S.-China trade war which drove a 13.9% rise in China-to-U.S. containerized freight in 4Q. The outlook for 1Q is uncertain given trade nego...

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