Economic Fallout From Tariffs Likely to Drive Deeper Volume Normalization for Expeditors

Expeditors International ranks among the top 10 global freight forwarders in a highly fragmented industry, and its record of impressive financial performance leads the industry. The company operates more than 250 offices on six continents, with exposure to a wide range of trade lanes. As a global forwarder, the company contracts with airlines and ocean carriers for cargo space then fills that capacity with customers' freight. A large customs brokerage operation (including value-added warehousing and distribution services) complements air and ocean services, along with multimodal and final-mile delivery services in North America (Transcon). Expeditors' asset-light model has generated excellent returns on capital near 40% over the past decade, with help from its wide economic moat, which is rooted in the self-reinforcing network effect.