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Expeditors reports positive results on increased freight volumes and customs fees

The global freight forwarder, Expeditors of Washington, reported Tuesday that its second-quarter revenue and profit were above Wall Street expectations. This was due to higher ocean and air container volumes as well as larger custom fees.

The quarter ended June 30 saw an increase of 7% in airfreight and ocean container volumes, as companies raced to import goods before the new U.S. Tariffs take effect.

It also gained from the increasingly complex policies of trade, which allowed it to charge higher fees for processing.

Customs brokers are increasingly being used by U.S. importers to stay up to date with the ever-changing policies of President Donald Trump. The booming demand for these services has led to a higher price, according to industry players.

The revenue from Expeditors’ customs brokerage segment increased 10.5%, from $927 to $1.02 Billion.

CEO Daniel Wall stated that "Airfreight increased due to growth in tonnage, higher rates and customers shipping technology and high-value inventories ahead of trade deadlines."

He added that "ocean business grew on the back of increased volumes and exports, especially out of South Asia as customers moved their sourcing to this region and moved freight ahead of extended tariff deadlines."

The Bellevue-based company, which reported quarterly revenues of $2.65 Billion, beat analysts' estimates of $2.44 Billion, according to LSEG data.

The second-quarter earnings of $1.34 per shares was also higher than the $1.24 expected.

The company still expects the freight market to be volatile for the remainder of the year. (Reporting and editing by Sahal Muhammad in Bengaluru, with Abhinav Paramar reporting from Bengaluru)

(source: Reuters)