Global freight forwarder Expeditors International of Washington reported second-quarter profit and revenue above Wall Street estimates on Tuesday, helped by higher airfreight and ocean container volumes and bigger custom fees.
Airfreight tonnage and ocean container volume increased 7% each year-over-year for the quarter ended June 30, as companies rushed to import before new U.S. tariffs kick in.
The company also benefited as increasingly complex trade policies allowed it to charge shippers higher processing fees.
U.S. importers have increasingly turned to customs brokers to keep up with President Donald Trump's ever-changing trade policies. But the booming demand has made these services more expensive, industry players previously told Reuters.
Revenue from Expeditors' customs brokerage segment rose 10.5% to $1.02 billion, up from $927 million a year earlier.
"Airfreight business increased on growth in tonnage and higher rates in most regions, and particularly as customers sought to ship technology and other high-value inventory ahead of trade deadlines," CEO Daniel Wall said.
"Ocean business also grew largely on increased volumes, particularly exports out of South Asia, as customers relocated sourcing to that region and moved freight in advance of extended tariff deadlines," he added.
The Bellevue, Washington-based company reported quarterly revenue of $2.65 billion, beating analysts' estimate of $2.44 billion, according to data compiled by LSEG.
Its second-quarter profit of $1.34 per share was also above estimates of $1.24 per share.
Still, the company expects freight market conditions to remain volatile through the rest of the year.
(Reuters)