Logistics firm Expeditors posts upbeat results as tariff turmoil boosts brokerage demand

Core Viewpoint - Expeditors International of Washington reported third-quarter profit and revenue exceeding Wall Street estimates, driven by strong airfreight volumes and increased demand for customs brokerage services [1][4]. Group 1: Financial Performance - The company achieved quarterly revenue of $2.89 billion, surpassing analysts' expectations of $2.73 billion [4]. - Quarterly profit was reported at $1.64 per share, exceeding estimates of $1.40 per share [4]. - Revenue from the airfreight segment increased to $1.02 billion from $986.9 million year-over-year [3]. - The customs brokerage segment reported revenue of $1.13 billion, up from $995.6 million a year earlier [3]. Group 2: Operational Insights - Airfreight tonnage rose by 4% in the reported quarter, primarily due to shipments from Asia [2]. - The easing of previously tight air capacity followed the expiration of the 'de minimis' exemption for goods entering the United States [2]. - The customs brokerage business is experiencing strong growth due to a dynamic trade environment, with rising volumes and complexity of entries posing challenges [3]. Group 3: Market Challenges - Revenue in the ocean freight and services division declined to $746.1 million from $1.02 billion a year earlier, attributed to pricing volatility and lower shipment volumes as importers adjusted orders ahead of anticipated tariffs [4].