EXPD · 10-Q · 2026Q3 · Full report

Inflationary Cost Pressures

EXPEDITORS INTERNATIONAL OF WASHINGTON INC · 2026-11-04 · Importance 19 · Surprise 6

The Company reports elevated inflation beginning in 2021 and continuing into 2026 in many countries, including the United States. It says this has contributed to rising labor costs, service-provider rates, rent and occupancy costs, and other expenses. Because competition may limit its ability to raise customer prices, these cost increases could erode margins and operating income; raising prices could instead reduce shipment volume and customer demand. The Company says it has limited direct exposure to higher interest expense because it has not incurred substantial interest-rate-sensitive debt.

Key facts

• Expeditors’ business experienced rising labor costs, service provider rate increases, higher rent and occupancy costs, and other expenses as elevated inflation continued into 2026. source
• Expeditors may be unable to increase customer prices enough to offset inflationary pressure, potentially eroding margins and operating income; raising prices to keep pace with inflation may reduce volume and demand. source