Expeditors International of Washington (NASDAQ: EXPD) provides shipping services to manufacturing and retail customers. The company does not own transportation assets (i.e. ships, trucks, planes), and instead uses third parties to ship goods.^[1] While EXPD does not compete for overnight courier or small parcel business, the logistics company does provide ocean and air freight services, along with customs brokerage service. EXPD uses its size and volume to negotiate prices with third-party carriers and consolidate shipments for customers.^[2]

At the end of September of 2007, Expeditors International of Washington ran 174 full-service offices and had operations in over 30 countries.^[3] Shipping goods internationally creates potential government and global economic risks. Changing tariff or trade regulations (possibly resulting from terrorist acts) could impact EXPD's business. Also, with a large portion of revenues coming from retailers, a decline in consumer demand would likely hurt operating income.^[4]

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