Expeditors Soars in Air Freight While Ocean Cargo Sinks in Q1

Key Details Expeditors International delivered mixed results in the first quarter, with airfreight climbing 5% year-over-year while ocean freight declined 4%. Air tonnage gains were consistent, rising 7% in January, 7% in February, and 3% in March. Ocean volume told the opposite story, falling 2%, 7%, and 4% respectively across those months. Why It Matters The divergence highlights shifting market conditions for freight forwarders. CEO Daniel Wall attributed air strength to higher rates and stable pricing during the first two months before Middle East tensions tightened capacity. Tech sector demand drove much of the airfreight growth. Ocean Freight Headwinds Wall cited persistent global capacity-demand imbalance as the culprit for ocean weakness. Lower per-container profitability and reduced Asian export volumes pressured margins. The company partially offset top-line pressure through favorable buy rates and cost discipline. Bright Spot Customs brokerage emerged as a standout performer. Higher entry volumes, increased complexity, and tariff-related activity drove revenue gains in this segment. Pricing increases and cost control further supported profitability in this business unit.