The following information is included in this document as a result
of Expeditors’ policy regarding public disclosure of corporate
information.

SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS UNDER SECURITIES
LITIGATION REFORM ACT OF 1995; CERTAIN CAUTIONARY STATEMENTS

Certain portions of this document, including the answers to
questions 1, 4, 7, 8, 11, 14, 16, 18, 19, and 22 contain
forward-looking statements which are based on certain assumptions
and expectations of future events that are subject to risks and
uncertainties. Actual future results and trends may differ
materially from historical results or those projected in any
forward-looking statements depending on a variety of factors
including, but not limited to, changes in customer demand for
Expeditors’ services caused by a general economic slow-down,
inventory build-up, decreased consumer confidence, volatility in
equity markets, changes in energy prices, liquidity constraints,
political changes, changes in foreign currency rates, or the
creditworthiness of our customers and service providers.

SELECTED INQUIRIES RECEIVED THROUGH FEBRUARY 24, 2017

Rate volatility isnt new to our industry or to us. Our approach to
managing and maintaining margins is to offer our customers
competitive market rates and great customer service, regardless of
where we are in the volatility cycle. Our customers want to know
that when markets heat up and supply is constrained, we are able to
utilize our broad-based carrier footprint to provide them with
predictability and consistency when they need it the most.

In the past, rate volatility followed a more predictable pattern,
with relatively few inflection points mixed in over an annual
operating cycle. Over the last two years, the marketplace has
endured numerous events that have disrupted the balance of
supply/demand, including a series of technology product releases,
U.S. West Coast port disruptions, and the bankruptcy of one of the
worlds largest ocean shipping companies. The current period of rate
volatility, however, is longer than what we have typically seen.
Since hitting near all-time lows, rates have been in almost
constant flux in recent quarters, with carriers announcing more
increases than in the past. While many of those rate increases are
not sustainable in the market, the environment has been much less
predictable than during other cycles.

We expect this volatility to continue over the near term as the
supply/demand imbalance corrects itself. We believe the best way to
manage through this period is to maintain a well balanced mix of
fixed and spot market pricing with carriers and reasonable levels
of price flexibility with customers.

See our response to Question No. 1 above.

Even as our Transcon business is becoming more mature, we are still
a relatively small player in that market, leaving a lot of room for
growth. Notably, Transcon growth in Q4 was supported by new
business as well as increased volumes from existing customers in
our core retail, high tech, and medical device sectors, among
others, with modes that include LTL and FTL. Solutions for these
customers primarily include white glove delivery as a core
component of service. Transcon is certainly an area of increased
focus and investment.

Investing in technology has always been a priority at Expeditors.
We are very proud of our IT team and their work, as we believe it
gives us a competitive advantage in our market. As you would
expect, IT has also always been a significant part of our capex
spend. In our recently filed 10-K, we estimated 2017 capex spending
of $110 million, of which $59 million would be related to
construction of a facility in Europe, with the remainder for
continuing investments in technology, office furniture and
equipment and leasehold improvements.

Please see our response to Question No. 4 above.

We do not set capex targets. We base our capital expenditures on
opportunities and need.

Since the founding of our company, our systems have been primarily
developed in-house by our own IT people, who have a deep
understanding and appreciation of the freight industry and how it
works, including the complexities of crossing international
borders. We operate a globally consistent platform across our
entire network, and its specifically engineered for the freight
industry. We believe that is a competitive advantage. We have not
had to endure the headaches that come from attempting to integrate
the disparate systems that are often a byproduct of MA. Our global
consistency also gives us much greater flexibility to introduce and
implement broad-based innovation across the network – which, again,
we consider to be a competitive advantage.

This in-house systems knowledge also allows us to develop data
analytics and tailor reports to meet specific customer
requirements. We are also very good at developing processes to
efficiently move data between our customers, carriers and customs.

We have always believed that technology offers enhanced
opportunities for optimization by removing manual inputs,
streamlining processes and improving customer service and employee
satisfaction. It also offers greater end-to-end transparency of
freight in motion. In addition, as shipment volumes and container
counts increase, technology offers the ability to handle that
increased capacity. But technology is only as good as the people
implementing and running it. We dont see technology as a means to
reduce headcount. Technology helps make us more efficient, and that
efficiency helps us leverage our workforce to gain more customers
and ship more freight.

We dont see any differences. Our business model is based on a very
high-touch level of service on a global scale. We present the same
level of service in all of our markets – whether those customers
expect it or not. This is especially important when challenges or
disruptions occur in the supply chain. Having the right customer
and carrier relationships in the right locations to provide
solutions is fundamental to our service model.

We make ourselves available to our shareholders throughout the
year, at conferences and in other settings. Those visits are
scheduled around our meetings with customers, service providers,
and visits to district operations and with employees.

Clearly, Amazon has built a very successful company and any opinion
we might have on their operations or intentions would be pure
speculation. The freight forwarding market is highly competitive
with many formidable players, even without new entrants, large and
small. We are watching and navigating all of it. As noted in our
recent earnings press release, we are a market leader. We recognize
that in order to maintain our leadership position and remain at the
forefront of innovation, we must continuously invest in people,
processes and technology. We believe the additional investments
were making in strategy, along with ongoing investments in people,
process and technology, will further enhance our market position.

Maersk is also a very successful company. Direct relationships,
particularly among the large ocean carriers, are nothing new. Most
of the asset-based carriers have always had direct customer
relationships, and most have purposefully not made the significant
investments required to build an operation capable of serving all
direct customers. Of those that have tried over the years, most
have largely divested in their direct operations, which is why our
model appeals to those carriers. They rely on us as an extension of
their sales force and to perform certain services in the supply
chain. We represent a lower-cost customer for those asset-based
carriers.

See our response to Question No. 12 above.

Of our four strategic growth initiatives, which we reiterated in
our recently filed 10-K, three give reference to specific
geographies. For one, we seek to align and integrate our
European-Asian Pacific and European-North Americas interests to the
same degree that our Asian Pacific and Americas interests have
historically been aligned. We have always been very strong in our
business between North America and Asia, and we are investing to
add strength and to align and integrate our European-Asian Pacific
and European-North Americas interests to the same degree.

Two other items that were focused on is growing our import business
into China and continuing to expand our North American market
share.

For competitive reasons, we have not disclosed that information,
providing only the percentage change in volumes and tonnage.

We have long viewed ourselves as a leader in the marketplace and a
leader in innovation, and we are confident in our core strategy to
grow the business. Phil Coughlin is one of our most senior
executives, with deep working knowledge of our markets, products,
and customers. We believe the time is ripe to dedicate someone of
Phils talents to building a team and developing the processes to
explore and evaluate new opportunities. As we look forward, Phils
team will be focused on identifying new opportunities in the form
of new markets and new services.

See our response to Question No. 16 above.

One of our strategic initiatives is to create a stronger China
import presence. China is no longer just an export market and we
see it as a significant opportunity to leverage our existing
footprint. Despite the general economic slowdown in China, it is
still one of the fastest growing economies with massive
capabilities and infrastructure. It is also increasingly becoming a
consumer economy with a very large emerging middle class with
wealth and a taste for imports. We have done a great deal of work
aligning origins and destinations on accounts that we target in
China and have invested in building infrastructure that supports
efforts to increase our import business and focuses on customs
processes and clearance in China.

In Europe, we are also focused on aligning origins and destinations
on accounts that we target. Some of the other larger projects that
we are focused on in Europe include aligning staff and developing
inbound and outbound gateways.

In both China and Europe, we are pleased with our progress and
continue to believe that we are focused on the right opportunities
and have created the appropriate projects to drive those
opportunities.

We also see a lot of opportunity for our Transcon business. While
its growing from a relatively small base, the marketplace is very
large and fragmented. It also offers many opportunities to provide
value-added services such as white glove and time-definite
shipping. Those are the sorts of higher-touch, customer-focused
services that give us room to perform at a higher level than much
of the competition.

What customers want – and have always wanted – is low pricing that
is consistent with whats being offered in the market. In recent
quarters, however, its been challenging at times to move our
pricing in sync with some of the rapid spikes in buy rates that
have been introduced at a more frequent cadence than in years past.
Gone is the relatively predictable seasonality of peak and off-peak
pricing. In the current environment, were focusing more intently on
the capacity commitments from customers throughout the year,
including peak and non-peak periods, and the mix of fixed and spot
market buying. Our customers come to depend on us because they know
that we have the breadth of relationships to move their cargo
efficiently and that we will optimize the routing to meet their
needs.

Besides customs brokerage business, our Customs Brokerage and Other
Services include Transcon and Warehousing and Distribution
Services. We are working to grow all of those businesses through a
combination of new and current customers.

We do not disclose such specific detail and would reference what we
discuss in our recently filed 10-K under Foreign Exchange Risk.

We have never hired lobbyists and currently have no plans to. As an
organization, we try to remain apolitical. We would point out,
however, that the U.S. is hardly the only country going through
potentially significant changes in its trade relations (Brexit
comes to mind). We would also note that while it is likely that
there will be alterations to certain global trade agreements and
government policies, this an area where Expeditors has
traditionally excelled by leading our customers through those types
of changes. We see such disruption as an opportunity, not an
obstacle.

We dont disclose that level of detail, noting in our recent
earnings release that we shipped record airfreight tonnage and
ocean container volumes in the fourth quarter, as we did over the
course 2016. We handle many different products, with particular
strength in retail, fashion, technology, oil energy, manufacturing,
healthcare, automotive, and aerospace.