Digital logistics company Yojee (ASX: YOJ) has entered into a services agreement with DB Schenker Asia Pacific, as the first stage of a potential broader rollout of its services for DB Schenker’s operations further afield in other jurisdictions around the world.
Yojee says the agreed deal will run for up to four months, after which both companies will “evaluate next steps.” Despite the provisional nature of the deal which has a determined trial period, the news buoyed investor sentiment and sent Yojee shares around 30% higher to $0.15 per share in early trade this morning.
The deal follows on from earlier commercial successes announced by the company earlier this year. In March, Yojee signed a pilot services agreement with UPS Asia Group, a subsidiary of the United Parcel Service (UPS), to field test its blockchain-powered logistics technology. Two months prior, Yojee agreed on a partnership agreement with ‘Sinotrans Integrated Logistics Australia’ (SILA), part of China’s largest shipping and logistics company.
The string of commercial deals suggests Yojee’s artificial intelligence and blockchain-powered service solutions are gaining commercial traction and facilitating the company’s emergence as one of Australia’s leading technology companies.
Blockchain and AI springboard to commerce
Yojee is currently fielding a product suite that utilises artificial intelligence (AI) and blockchain technology to create a seamless regional freight network.
Under the services agreement agreed with DB Schenker, the company will pay Yojee a fee to commence a project for the implementation of Yojee’s platform into Schenker’s e-commerce and last mile operations including warehousing, route optimisation, cross-docking and customer-facing experiences.
The deal is a significant step for Yojee given that DB Schenker is one of the world’s leading global logistics providers that has been an industry leader for over 140 years. The company currently takes up a central role in supporting industry and trade in the global exchange of goods through land transport, worldwide air and ocean freight, contract logistics and supply chain management.
Its sheer size means Yojee will have its hands full if the two companies agree on a long-term deal later this year.
DB Schenker operates from 2,000 different locations around the world and provides an extensive range of logistics solutions within the automotive, technology, consumer goods and special events sectors. The logistics giant transports more than 1.3 million tonnes of air freight volume and more than 2.2 million tonnes of ocean freight volume every year.
Over the past century, the company has become a commercial giant, employing over 72,000 people and recording annual revenues of around €16.4 billion.
“We look forward to working with DB Schenker, a true global logistics leader, to evaluate building an industry-leading digital transformation package using Yojee’s platform, AI and blockchain. This agreement with DB Schenker provides strong industry validation of Yojee’s unique value proposition to global logistics companies and the future potential of our technology,” said Mr Ed Clarke, managing director of Yojee.