Expeditors International Of Washington Inc (NYSE: EXPD)

Expeditors International of Washington, Inc. provides a full suite of global logistics services, offering customers access to an international network of people and integrated information systems to support the movement and strategic positioning of goods. As a third-party logistics provider, the company purchases cargo space from carriers such as airlines, ocean shipping lines, and trucking lines on a volume basis and resells that space to its customers. Expeditors does not compete for overnight courier or small parcel business and does not own aircraft or ships.

The company generates revenue through its core services including airfreight, ocean freight and ocean services, and customs brokerage and other services. Airfreight services accounted for approximately 36% of total revenues in 2025, ocean freight services for 25%, and customs brokerage and other services for 39%. Revenue is derived from transportation services, customs clearance, warehousing and distribution, order management, and value-added solutions such as cargo insurance and trade compliance consulting.

The company operates through the following segments: Airfreight Services, Ocean Freight and Ocean Services, Customs Brokerage and Other Services.

• Airfreight Services: This segment provides airfreight consolidation and forwarding solutions, purchasing cargo capacity from airlines on a volume basis and reselling that space to customers at lower rates. It offers routing expertise, familiarity with local business practices, knowledge of export and import documentation, and the ability to arrange ancillary services. The segment supports time-definite transportation and handles shipments requiring rapid delivery or high value-to-weight ratios.

• Ocean Freight and Ocean Services: This segment provides ocean freight consolidation, direct ocean forwarding, and order management through its subsidiary Expeditors International Ocean, Inc. (EIO), which operates as a Non-Vessel Operating Common Carrier (NVOCC). EIO contracts with ocean shipping lines to obtain container transportation and offers full container load and Less-than Container Load (LCL) services. The segment also provides order management services that consolidate cargo from multiple suppliers to maximize space utilization and minimize cost.

• Customs Brokerage and Other Services: This segment assists customers in clearing shipments through customs by preparing and filing required documentation, calculating and providing for payment of duties and taxes, and arranging for governmental inspections. It offers import services such as local pickup, storage, and delivery, along with value-added services including warehousing and distribution, Transcon, and trade compliance consulting. The segment supports regulatory compliance and supply chain visibility through technology and licensed professional oversight.

Expeditors holds a strong position in the global logistics industry as a leading third-party logistics provider with a focus on organic growth and integrated technology platforms. The company competes against both large integrated logistics providers and niche players, differentiating itself through its non-asset-based model, global network of district offices, and commitment to compliance and customer service. Its competitive advantages include a single enterprise technology platform, deep expertise in customs brokerage, and a diversified service portfolio that enables tailored supply chain solutions.

Expeditors serves a diversified group of customers across various industries, including technology, healthcare, automotive, aviation, aerospace, retail, and high fashion. The company works with professionals in logistics and supply chain management roles within customer organizations to provide tailored solutions. No single customer accounts for five percent or more of the company's revenues, reflecting a broad and balanced customer base.