QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: We are exposed to market risk from changes in certain commodity prices, inflation, and interest rates.
+Added: We are exposed to market risk from changes in certain commodity prices, inflation, and interest rates or other economic conditions that decrease shipping demand.
All of these market risks arise in the normal course of business, as we do not engage in speculative trading activities.
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Inflation can have an unfavorable impact on our operating costs, and a prolonged period of inflation could cause interest rates, fuel, wages, healthcare and other employee benefits, transportation equipment and related maintenance, insurance premiums, and other costs to increase, which would adversely affect our results of operations unless freight rates correspondingly increase.
−Removed: While inflation has stabilized during 2023, the prior two years have seen considerable price inflation where we experienced increases in our fuel, transportation equipment, labor and third-party capacity, tire, and maintenance costs.
+Added: Although inflation has eased since historic highs in 2021, we have seen carryover effects of price inflation where we experienced increases in our fuel, transportation equipment, labor and third-party capacity, tire, and maintenance costs.
A resumption of an upward inflationary environment could harm our business, financial condition, and results of operations.
Interest Rate Risk
−Removed: We have exposure from variable interest rates primarily related to borrowings under our accounts receivable securitization facility and our revolving credit facility which bear interest based on the one-month Term SOFR.
+Added: We have exposure from variable interest rates primarily related to borrowings under our accounts receivable securitization facility, revolving credit facility, and delayed-draw term loan facility which bear interest based on the Term SOFR.
See Note 7, Debt and Credit Facilities .
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.