Nov 5 (Reuters) - Logistics company Expeditors
International of Washington ( EXPD ) reported third-quarter
results above estimates on Tuesday, driven by increasing tonnage
and volumes as some shippers moved freight early due to concerns
over port disruptions and geopolitical tensions.
Recent labor actions at U.S. East and Gulf Coast ports led
shippers to expedite the movement of essential goods, sometimes
opting for air transport to mitigate supply chain disruptions
ahead of the holiday season.
"Geopolitical events continued to affect pricing and freight
flow during the quarter," said CEO Jeffrey Musser. "Ocean
transit times were extended as carriers avoided the Red Sea and
were further disrupted by previous concerns over potential port
strikes."
The Seattle, Washington-based company's ocean container
volume increased 12% in the quarter.
Despite air freight's higher costs, Expeditors saw a 19%
increase in air freight tonnage, with e-commerce driving
capacity absorption and boosting rates.
The service-based company, which doesn't own the aircraft,
ships, or trucks used every day, reported a quarterly revenue of
$3 billion, beating analysts' estimates of $2.44 billion,
according to data compiled by LSEG.
Expeditors reported a net income of $229.6 million, or $1.63
per share, for the quarter ended September 30, from $171.4
million, or $1.16 per share, a year earlier.
Analysts on average expected the company to post a profit of
$1.35 per share.