Freight Costs Outpace Revenue at Expeditors
Importers and exporters using forwarders should expect transportation costs to rise faster than forwarder revenue in coming quarters.
Updated on Nov. 3, 2026 in Transportation
Expeditors International reported third-quarter 2026 revenue of $4.1 billion, up 42% year-on-year, and operating income of $445.4 million, up 55%. The freight forwarder's results beat consensus estimates, and its stock traded down 0.76% in early trading.
Why it matters
Operating income grew faster than revenue, but cost of transportation rose 49% and salaries climbed 15%, signaling rising input costs for forwarders and their shippers. CEO Daniel Wall attributed third-quarter performance to the strength of demand for products and services.
Expeditors reported revenue of $4.1 billion, up 42% year-on-year, with operating income up 55% to $445.4 million. Airfreight volume rose 13% and ocean freight volume rose 12% year-on-year over the quarter, while total headcount grew 1.4% to 20,463 employees.
The players
Expeditors International
A global freight forwarder and customs broker whose business model centers on airfreight and ocean freight logistics for importers and exporters.
Daniel Wall
The chief executive of Expeditors International, who attributed the company's third-quarter performance to strong demand for its products and services.
The details
Expeditors' revenue growth outpaced its headcount growth, and the company attributed part of its gains to a rising market share, particularly in markets where it has made a strategic focus. Demand from hyperscaler customers has outpaced the market overall. Cost of transportation rose 49%, faster than revenue, which means the company's gross margin on freight moved in a direction that depended on how those costs were passed through. Airfreight demand was supported by record global air tonnage, with South Asia cited as a key market.
Timeline
May 2025: U.S. de minimis import policy shift affecting U.S.-China e-commerce.
July through September 2026: Airfreight and ocean freight volumes increased year-on-year.
November 3, 2026: Expeditors released its third-quarter results and its stock traded down in early trading.
Market Landscape
Expeditors' growth in airfreight and ocean freight volumes sits against the backdrop of a May 2025 U.S. de minimis import policy shift affecting U.S.-China e-commerce. The company's market share gains, particularly in strategically prioritized markets, and its faster-growing hyperscaler demand suggest competitive positioning in a period of elevated freight activity.
Shippers and importers should expect freight forwarding costs to remain a significant line item, given the 49% rise in transportation costs that outpaced revenue growth. Operators reviewing logistics budgets should track airfreight and ocean freight rate pass-throughs in upcoming quarters.
The takeaway
Operators should compare their own freight cost growth against the 49% rise reported by Expeditors to gauge whether their logistics spending is tracking the broader market. Reviewing forwarder contract terms for how transportation cost increases are passed through is a practical step before the next budget cycle.
Further reading
For broader context on how freight costs and volumes are shaping the industry, explore the Transportation section.
