Expeditors International (NYSE: EXPD) closed its second quarter with airfreight volume up 14% year over year while ocean freight finished flat, according to FreightWaves.
Air freight leads double-digit growth
FreightWaves reported that airfreight measured in kilos rose 14% for the quarter, with month-by-month gains accelerating through the period: 13% in April, 14% in May, and 15% in June. CEO Daniel Wall said the strength came in a market with “highly elevated” buy and sell rates, “as demand for air capacity continued to outweigh available space, particularly late in the quarter.”
Wall’s prepared comments credited operational execution for the momentum:
“Our excellent performance this quarter, with double-digit growth across most of our products, is demonstrating that our strategy around operational excellence is working and allowing us to take market share.”
He also tied air demand to two supply-side factors: the Middle East conflict had reduced passenger flights available to carry freight, creating “constrained belly capacity,” and “hyperscalers” — operators of large cloud and data-center systems — are requiring upper-deck freighter access for their servers.
Ocean: a weak start, a stronger finish
Ocean freight, measured in forty-foot equivalents (FEUs), performed unevenly across the quarter. FreightWaves reported April was down 9%, May was up just 1%, and June rose 9%, for an overall flat performance. Sequentially, ocean volume was up 7% from the first quarter.
| Month | Ocean volume vs. a year earlier |
|---|---|
| April | -9% |
| May | +1% |
| June | +9% |
| Quarter | Flat |
“We may be starting to see a flattening of the long downturn in the ocean market,” Wall said. Profitability per container was higher, fueled by “heightened pricing late in the quarter,” according to FreightWaves.
Customs business gains from tariff complexity
Expeditors’ customs forwarding business benefited as shippers worked through changing levies. Wall described a “temporary surge” in activity related to tariffs under the Trump administration’s International Emergency Economic Powers Act (IEEPA), which the Supreme Court ruled illegal. He also cited solid growth from new customers and increased declarations from existing customers, according to FreightWaves.
Financial results and cost pressure
Consolidated results showed revenue up 32% year over year to $3.5 billion from $2.65 billion, FreightWaves reported. Operating income rose 41% to $349.6 million from $247.7 million in 2025, and earnings per share reached $2.03, up from $1.34 a year earlier. Transportation costs grew faster than revenue — up 38% versus the 32% revenue gain — while salaries and other operating expenses rose just 13%.
| Financial metric | Q2 latest | Q2 prior | Change |
|---|---|---|---|
| Revenue | $3.5B | $2.65B | +32% |
| Operating income | $349.6M | $247.7M | +41% |
| EPS | $2.03 | $1.34 | +51.5% |
FreightWaves noted Expeditors does not hold an earnings call with analysts; Wall’s comments came in the prepared earnings announcement.
The stock was up about 2.8% at approximately 11:15 a.m. Tuesday after the release, according to FreightWaves. Barchart data cited by FreightWaves showed gains of 4.57% over the past month, 25.43% over three months, and 49.9% over 52 weeks.
Watch list
- Air capacity: Wall said demand for air capacity “continued to outweigh available space, particularly late in the quarter,” with hyperscaler demand for upper-deck freighter space also cited.
- Middle East conflict: The conflict reduced passenger flights handling air freight, causing “constrained belly capacity,” according to Wall.
- Ocean pricing: “Heightened pricing late in the quarter” lifted per-container profitability, and Wall said the market may be starting to flatten after a long downturn.
- Tariff surge: The “temporary surge” in customs activity tied to IEEPA tariffs — which the Supreme Court ruled illegal — could unwind as shippers adjust, according to Wall.
FreightWaves also promoted upcoming industry events linked to F3: the Brokerage Compliance Symposium and the F3 Awards Dinner, where FreightTech100 honorees and FreightTech 25 and Shipper of Choice winners are recognized.
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