Page 1

By : Expeditors International of Washington , Inc. 1015 Third Avenue Seattle , Washington 98104 CONTACTS : EARNINGS RELEASE Jeffrey S. Musser Bradley S. Powell President and Chief Executive Officer ( 206 ) 674-3433 Senior Vice President and Chief Financial Officer ( 206 ) 674-3412 Expeditors You'd be surprised how far we'll go for you . Geoffrey Buscher Director - Investor Relations ( 206 ) 892-4510 FOR IMMEDIATE RELEASE EXPEDITORS REPORTS SECOND QUARTER 2021 EPS OF $ 1.84 SEATTLE , WASHINGTON - August 3 , 2021 , Expeditors International of Washington , Inc. ( NASDAQ : EXPD ) today announced second quarter 2021 financial results including the following highlights compared to the same quarter of 2020 : • Diluted Net Earnings Attributable to Shareholders per share ( EPS¹ ) increased 69 % to $ 1.84 Net Earnings Attributable to Shareholders increased 72 % to $ 316 million Operating Income increased 66 % to $ 411 million Revenues increased 50 % to $ 3.6 billion Airfreight tonnage volume and ocean container volume increased 37 % and 34 % , respectively " We continued to move unprecedented volumes during the quarter , as ocean and air buy / sell rates remained elevated and volatile , capacity was extremely tight , and supply chain disruptions showed no signs of abatement , " said Jeffrey S. Musser , President and Chief Executive Officer . " Our entire company continues to perform at its very best , with strong performance and growth across all of our products . Because of ongoing supply / demand imbalances , as well as labor and equipment shortages around the globe , shippers face extraordinarily complex challenges throughout their supply chains . Logistics is now top of mind at the highest levels in most organizations . Unfortunately , there is no quick or simple fix to any of these issues and every one of our transactions seems to require significantly more attention and dedication . Whether it's an ocean container , a customs declaration , a fulfillment order in one of our warehouses , or a high - touch , white - glove delivery for one of our Transcon customers - just about everything we do requires us to be more innovative , flexible , and alert to change in the current operating environment . I want to express enormous gratitude to our employees , who have continued to take care of our customers throughout these challenges . " During the quarter , we achieved new records in airfreight tonnage and ocean container volumes , operating income and net earnings . Buy and sell rates remained significantly higher than pre - pandemic norms , as we worked with our carrier partners to secure precious space for our customers . It has not been easy . Many of the impediments to smoother trade flow , such as port congestion and equipment shortages , were not appreciably better in Q2 than they were in Q1 . " Currently , we do not foresee any meaningful improvements to the operating environment over at least the remainder of the year , as the global infrastructure for moving freight seems nearly stretched to its limit . Robust demand is bumping up against capacity constraints in the air and ocean markets , all of which is made more challenging by limited warehouse space , staffing constraints , port congestion , equipment dislocations , and driver shortages , not to mention additional disturbances such as the closure of the Yantian port due to a COVID - 19 outbreak in May or the blockage of the Suez Canal back in March . " We will continue to do all that we can to help our customers during such difficult times . While we remain optimistic that conditions will improve over time , we are unable to predict when that might take place , or how even the recovery might be , and we believe that demand will likely continue to outstrip capacity in both air and ocean for the near term , keeping buy / sell rates unsettled for at least the duration of 2021. " Bradley S. Powell , Senior Vice President and Chief Financial Officer , added , " The quarter just ended provides the first meaningful comparisons to a strong year - ago quarter in 2020 , when we first started to see the results of our improved performance during the unprecedented conditions brought on by the global COVID - 19 pandemic . At that time , we were just starting to demonstrate our ability to quickly adapt to a radically different operating environment of high demand for very specific products in certain lanes at a time when the vast majority of air capacity had been removed and most of our people were settling in to working from home . A year later , as we are cautiously beginning to bring our people back on site , we are navigating a multitude of challenges and performing at levels we have never seen before across the company and in all of our products . We are busier than ever , generating growth in revenue , operating income , and earnings that is well ahead of expenses , as we continue to learn how to operate in this environment . While we believe the current environment is likely to remain at least through the end of 2021 , I would again caution that we are unable to predict how long these ongoing conditions will persist or the impact they will have on our future operations . Regardless , we will continue to make important investments in people , processes , and technology , as well as to invest in our strategic efforts to explore new areas for profitable growth . " Expeditors is a global logistics company headquartered in Seattle , Washington . The Company employs trained professionals in 176 district offices and numerous branch locations located on six continents linked into a seamless worldwide network through an integrated information management system . Services include the consolidation or forwarding of air and ocean freight , customs brokerage , vendor consolidation , cargo insurance , time - definite transportation , order management , warehousing and distribution and customized logistics solutions . ¹Diluted earnings attributable to shareholders per share . NOTE : See Disclaimer on Forward - Looking Statements in this release .