Expeditors International Of Washington Inc (NYSE: EXPD)

Expeditors International of Washington, Inc. provides a full suite of global logistics services as a 3rd party logistics provider, purchasing cargo space from airlines, ocean carriers and trucking companies and reselling it to customers while offering customs brokerage, order management, warehousing, distribution and value added solutions.

The company also provides time definite transportation, temperature controlled transit, cargo insurance, specialized cargo monitoring and tracking, and handles project cargo shipments that require special attention due to size or nature.

The company generates revenue primarily from 3 service groups: airfreight services, ocean freight and ocean services, and customs brokerage and other services, which together accounted for approximately 36%, 25% and 39% of total revenues in 2025 respectively, serving a diversified customer base across industries such as technology, healthcare, automotive, aerospace, retail and high fashion.

Revenue is earned primarily through fees charged for moving freight and providing ancillary services such as documentation, customs clearance, insurance and value added solutions, while the company avoids owning aircraft or ships and instead purchases cargo space from carriers.

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

These segments reflect the company's core service lines and are used for internal reporting and resource allocation, with each segment contributing to the overall global logistics offering.

• Airfreight Services: This segment consolidates shipments, acts as a freight forwarder, provides routing expertise, arranges ancillary services such as documentation, packing, insurance and cargo tracking, and helps customers secure capacity during high demand periods.

• When acting as a consolidator, it purchases cargo capacity from airlines on a volume basis and resells that space at lower rates than direct carrier rates, issuing a house airway bill and receiving a master airway bill from the carrier.

• Ocean Freight and Ocean Services: This segment offers ocean freight consolidation, direct ocean forwarding and order management, handling full container loads and less than container cargo, providing documentation, booking and tracking services, and chartering vessels for special projects.

• As an NVOCC, it contracts with ocean carriers to obtain container allocations at agreed rates, issues a house ocean bill of lading to customers and receives a master ocean bill of lading from the carrier when cargo is tendered.

• Customs Brokerage and Other Services: This segment provides customs clearance, import services, warehousing, distribution, Transcon ground transportation, and value added solutions such as inventory management, order fulfillment and trade compliance consulting.

• It also helps customers clear shipments through customs by preparing and filing required documentation, calculating duties and taxes, arranging inspections and offering import services such as local pickup, storage and delivery.

Expeditors competes in a highly fragmented global logistics market where it differentiates itself through a non asset based model, a proprietary technology platform that integrates operations worldwide, and a focus on organic growth supplemented by selective acquisitions, positioning it against large integrated carriers, niche freight forwarders and emerging tech driven logistics firms.

The company's competitive advantages include its integrated technology system that provides real time visibility, its global network of district offices that enables localized expertise, and its reputation for reliable service and strict compliance with customs and security regulations.

The company serves a diversified group of customers that vary in size, industry and geographic location, with no single customer accounting for 5% or more of revenue, including manufacturers, retailers, technology firms, healthcare providers and automotive companies across the world.

Customers range from small businesses seeking occasional shipping support to multinational corporations relying on ongoing supply chain management, and the company adapts its solutions to meet the specific needs of each industry vertical such as technology, healthcare, automotive, aerospace, retail and high fashion.