(Reuters) -Global freight forwarder Expeditors International of Washington reported third-quarter profit and revenue above Wall Street estimates on Tuesday, driven by strong airfreight volumes and increased demand for its customs brokerage services.
The company’s shares were up 5% in early trading.
Expeditors’ airfreight tonnage rose 4% in the reported quarter, led by shipments from Asia, as previously tight air capacity eased following the expiration of the ‘de minimis’ exemption for goods entering the United States.
The company has also benefited from stronger demand for its brokerage services, as shifting U.S. trade policy under President Donald Trump keep shippers busy securing customs clearances, a trend that has also driven up the cost of such services, according to industry sources.
“Our customs brokerage business continues to post strong growth amid sustained demand driven by a dynamic trade environment,” CEO Daniel Wall said, adding that rising volumes and complexity of entries continue to challenge the segment.
Revenue at the company’s airfreight segment rose to $1.02 billion from $986.9 million last year, while its customs brokerage segment reported a revenue of $1.13 billion, compared with $995.6 million a year earlier.
However, pricing volatility and lower shipment volumes – as many importers pulled forward orders ahead of anticipated tariffs – dragged revenue in Expeditors’ ocean freight and services division down to $746.1 million from $1.02 billion a year earlier.
The Seattle, Washington-based company reported quarterly revenue of $2.89 billion, beating analysts’ estimate of $2.73 billion, according to data compiled by LSEG.
It reported quarterly profit of $1.64 per share, above estimates of $1.40 per share.
(Reporting by Abhinav Parmar; Editing by Shailesh Kuber)
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