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Expeditors International beats Q3 estimates on early freight moves
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Expeditors International beats Q3 estimates on early freight moves
Nov 5, 2024 6:47 AM

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.

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