Expeditors International of Washington (EXPD) risk factors, FY2024 10-K

Expeditors International of Washington's FY2024 10-K, filed Feb 21, 2025, lists 19 risk factors in 3 groups. There is no earlier 10-K to compare against, so the most company-specific risks are listed below.

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Risk factors listed
193 groups
Section length
4k wordsItem 1A

Expeditors International of Washington's biggest risks in the FY2024 10-K

  • Expeditors relies heavily on third-party air, ocean, and ground carriers for non-asset-based global logistics operations.
  • Operations face severe risks from international trade reductions, IT disruptions, and cybersecurity threats.
  • Material weaknesses in IT general controls threaten internal financial reporting and investor confidence.

The risks most specific to Expeditors International of Washington

  • Operational Risks

    We are dependent on our personnel and any inability to hire, develop or retain our key employees may have a negative impact on our operations

    Expeditors requires employees to work in the office, which could hinder its ability to hire, develop, or retain key personnel compared to remote-friendly competitors.

  • Operational Risks

    Any significant disruptions or unapproved third-party access to our network and systems continuity could have an adverse impact to our business and financial results

    The company faces risks of significant disruptions or unauthorized third-party access to its global systems due to equipment failures, power outages, sabotage, or government interference.

  • Operational Risks

    We rely on service providers, including air, ocean, ground freight carriers and others and if they have insufficient capacity available relative to market demand or have reduced capacity to provide service, it may adversely impact our business and operating results

    As a non-asset-based provider, Expeditors depends on air, ocean, and ground freight carriers who may have insufficient capacity relative to market demand.

  • Operational Risks

    We face risks associated with the handling, transporting, and storing of customer inventory including classified dangerous goods and high value commodities

    Handling and transporting customer inventory, including classified dangerous goods and high-value commodities, exposes Expeditors to potential claims, expenses, and reputational harm.

  • Operational Risks

    Difficulty in forecasting timing or volumes of customer shipments or rate changes by carriers could adversely impact our margins and operating results

    The company struggles to forecast short-term customer shipment volumes and carrier rate changes, while personnel costs remain inflexible.

  • Operational Risks

    We are subject to taxation in multiple jurisdictions, and although we believe our tax estimates are reasonable, any adverse determinations in tax audits could negatively impact our financial results

    Expeditors is subject to taxation in multiple jurisdictions including China, Hong Kong, Taiwan, Vietnam, India, Mexico, Canada, the Netherlands, and the United Kingdom.

  • General Risks

    We identified material weaknesses in our internal control over financial reporting related to ineffective information technology general controls which, if not remediated appropriately or timely, could result in loss of investor confidence and adversely impact our stock price

    Management identified material weaknesses in internal control over financial reporting related to IT general controls regarding database changes supporting financial systems.

  • General Risks

    Actions of activist investors could disrupt our business

    Activist investors may propose changes to governance policies or board composition, creating significant distractions for management and employees.

All 19 risk factors

Headings as the filing states them, in filing order.

Industry Risks

  1. 01Any reduction in international commerce or disruption in global trade may adversely impact our business and operating results
  2. 02Our industry is highly competitive, and failure to compete or respond to customer requirements could damage our business and results of operations

Operational Risks

  1. 03We are dependent on our personnel and any inability to hire, develop or retain our key employees may have a negative impact on our operations
  2. 04We rely heavily upon the flexibility and sophistication of the technologies used in our core business and failure to properly manage, enhance and update technologies could lead to disruptions in our operations or our ability to remain competitive
  3. 05Any significant disruptions or unapproved third-party access to our network and systems continuity could have an adverse impact to our business and financial results
  4. 06We rely on service providers, including air, ocean, ground freight carriers and others and if they have insufficient capacity available relative to market demand or have reduced capacity to provide service, it may adversely impact our business and operating results
  5. 07Failure to grow and gain profitable market share could adversely impact our ability to remain competitive and could adversely impact our business
  6. 08Any disruption of our business caused by a catastrophic event could harm our ability to conduct normal business operations and impact our operating results
  7. 09We face risks associated with the handling, transporting, and storing of customer inventory including classified dangerous goods and high value commodities
  8. 10Our insurance coverage does not cover all potential losses and significant uninsured losses could adversely impact our financial results
  9. 11Difficulty in forecasting timing or volumes of customer shipments or rate changes by carriers could adversely impact our margins and operating results
  10. 12Climate change, including measures to address climate change, could adversely impact our business and financial results
  11. 13We are subject to a complex regulatory environment, and failure to comply with and adapt to these regulations could result in penalties or otherwise adversely impact our business
  12. 14We operate globally and any inability to safeguard our operations or comply with anti-corruption laws and trade compliance regulations would adversely impact our reputation and business
  13. 15We are subject to taxation in multiple jurisdictions, and although we believe our tax estimates are reasonable, any adverse determinations in tax audits could negatively impact our financial results

General Risks

  1. 16Investigations and litigation could require management time and or to incur substantial legal costs or fines, penalties or damages, any of which could adversely impact on our financial results
  2. 17Global health emergencies on the scale of the COVID-19 pandemic may significantly impact worldwide economic conditions and global trade and can have a disruptive effect on our operations, and the operations of our service providers and our customers, which may impact our business
  3. 18We identified material weaknesses in our internal control over financial reporting related to ineffective information technology general controls which, if not remediated appropriately or timely, could result in loss of investor confidence and adversely impact our stock price
  4. 19Actions of activist investors could disrupt our business

Other Expeditors International of Washington 10-Ks

  • FY2025 10-K risk factors
    20 risks2 new1 dropped3 reworded

    Trade friction with China poses direct revenue risks, as China and Hong Kong exports generated 19% of revenues in 2025. Internal control risk shifted from past weaknesses to general evaluation and IT system uncertainty. Tax disclosures now explicitly incorporate the U.S. 2025 Tax Act alongside OECD Pillar Two minimums.

    Filed Feb 25, 2026

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.