Blockchain tech Yojee jumps 32pc after signing logistics deal
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Blockchain logistics platform Yojee has signed a deal with the world’s leading global logistics provider to set up a last mile platform in Asia.
Yojee (ASX:YOJ) says the agreement with DB Schenker — a division of German rail operator Deutsche Bahn — could lead to a broader regional tech rollout, starting with a four-month project.
Blockchain technology provides an encrypted, public ledger used in digital currency transactions and applications such as verifying supply chain data and securing digital contracts.
In a recent Deloitte survey of tech savvy execs, supply chain management was cited as the most common application of blockchain technology (53 per cent). More than three quarters of execs believed there was a “compelling business case” to use blockchain technology in their business.
DB Schenker’s Asia Pacific arm will pay YOJ a fee to implement its platform into the ecommerce and last-mile operations covering warehousing, wharf cartage and route optimisation.
Yojee shares jumped 32 per cent to 15.2c in early Tuesday trade, falling back to 14.5c by 10.30am AEST.
The stock is trading at half its December high of 36c — reached afte news of completing its blockchain integration.
Partnering with Schenker gives Yojee exposure to one of the biggest logistics providers – a group that achieved revenues of $25.5 billion last year.
Last year it moved more than 1.3 million tonnes of air freight volume and more than 2.2 million TEU of ocean freight volume, operating from some 750 warehouse locations with warehousing space of 8 million square metres.
TEU or “Twenty Foot Equivalent Unit” is a measurement unit that refers to the capacity of a container ship.
“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,” managing director Ed Clarke told investors.
“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.”