What Expeditors International of Washington, Inc. told the SEC could break it.

As a freight forwarder, Expeditors' volumes track global trade — it's especially exposed to US-China tariff disputes (19% of 2025 revenue and 15% of operating income from China/HK exports), the 2025 de minimis termination, and broad tariff rebalancing/IEEPA uncertainty.

“Expeditors' activity is particularly exposed to trade volume impacts from trade actions and tariff disputes between China and the United States, as we generated 19% and 22% of our revenues and 15% and 17% of our operating income in 2025 and 2024, respectively, on exports from China and Hong Kong.”

Expeditors is economically regulated by the FMC as an OTI/NVOCC (electronic tariff filing, penalties), licensed/audited by CBP as a customs broker, and subject to emerging maritime climate rules (FuelEU Maritime, EU ETS).

“The FMC is also responsible for the economic regulation of OTI/NVOCC activity originating or terminating in the United States. To comply with these economic regulations, OTI/NVOCCs, such as Expeditors, must file tariffs electronically, establishing the rates to be charged for the movement of specified commodities into and out of the United States. The FMC has the power to enforce these regulations by assessing penalties.”

As a non-asset-based consolidator/NVOCC, Expeditors must buy cargo capacity from airlines and ocean carriers; carriers adjusting capacity/schedules drives volatility in available space and sell/buy rates, challenging its unitary profitability.

“Uncertainty and changes to trade volumes could also affect air and ocean freight carriers because they may adjust capacity and transportation schedules, which could result in volatility in available capacity, and average sell and buy rates, all of which could adversely impact our operations and financial results.”