Jayud Announces New Air Charter Service Agreement with JD Airlines

Rhea-AI Summary

Jayud Global Logistics Limited (NASDAQ: JYD) announces a significant new air charter service agreement with Jiangsu Jingdong Cargo Airlines to establish a new charter service on the Shenzhen-to-Clark, Philippines route, boosting cargo capacity and trade relations.

Insights

Logistics Analyst

The announced charter service agreement between Jayud Global Logistics Limited and Jiangsu Jingdong Cargo Airlines is a strategic move that can potentially increase operational efficiency and boost trade relations between China and the Philippines. By adding over 100 round trips on the new Shenzhen-to-Clark route, the companies are addressing a clear demand for enhanced cargo capacity, which could lead to reduced shipping times and lower costs for businesses relying on these logistics services.

Considering the current economic landscape, where supply chain resilience is a priority, this expansion could offer competitive advantages to Jayud by diversifying its route portfolio and strengthening its position in the market. For investors, the success of this service could translate into increased revenue streams and a stronger market share for Jayud, potentially impacting its stock positively. However, it's essential to monitor the execution of these services and the actual trade volume growth as a measure of the agreement's success.

Financial Analyst

From a financial perspective, the partnership between Jayud and JD Airlines signifies a capital-intensive investment aimed at capitalizing on the burgeoning trade between China and the Philippines. The commitment to 100 round trips suggests a long-term strategy to secure a foothold in the regional logistics market. Investors should consider the implications of this move on Jayud's operational costs and how it may affect their profit margins in the short term.

Furthermore, with JD Airlines' recent expansion into international cargo routes, this agreement could indicate a trend towards globalization of regional cargo carriers, which may reshape the competitive landscape. Stakeholders should evaluate how this expansion aligns with Jayud's overall growth strategy and the potential for synergies with JD Airlines' existing network. The ability to gauge the market's response to increased capacity will be crucial in assessing the long-term viability of the investment.

Trade Relations Expert

The establishment of a new air charter service is a significant development in the context of international trade relations. It reflects a proactive approach to fostering closer economic ties between China and the Philippines, which could have implications beyond the logistics sector. The increase in cargo capacity is likely to facilitate trade and may encourage an uptick in bilateral business ventures.

For businesses operating within these regions, the new service could mean improved access to goods, potentially leading to cost savings and enhanced market reach. This development could also serve as a catalyst for further economic cooperation and could be seen as a bellwether for future trade agreements. Investors might view this as a sign of Jayud's commitment to strategic growth and a positive indicator of the company's ability to forge important partnerships that can enhance its service offerings and market presence.

New Charter Service from Shenzhen to Clark, Philippines, with Over 100 Round Trips Planned to Boost Cargo Capacity and Trade Relations

SHENZHEN, China, Dec. 19, 2023 /PRNewswire/ -- Jayud Global Logistics Limited (NASDAQ: JYD) ("Jayud" or the "Company"), a leading end-to-end supply chain solution provider based in Shenzhen, specializing in cross-border logistics, today announced a significant new air charter service agreement with Jiangsu Jingdong Cargo Airlines ("JD Airlines"), a distinguished cargo airline based in China (the "Agreement"). This agreement marks a substantial expansion of Jayud's air freight capabilities. This Agreement between Jayud and JD Airlines built through the Agreement is set to last for a year, with the potential for further collaboration based on the success of the Shenzhen-to-Clark service.

The centerpiece of this Agreement is establishing a new charter service on the Shenzhen-to-Clark, Philippines (CRK) route. This service is set to commence on December 16, 2023, with a commitment to operate at least 100 round trips over the next year. This new route is expected to significantly enhance the cargo capacity and efficiency between China and the Philippines, reflecting the growing trade relations between the two countries.

Xiaogang Geng, Chairman of the Board and CEO of Jayud, commented, "As we embark on this exciting new partnership with JD Airlines, we at Jayud are not just opening a new route; we are rapidly expanding our service footprint while narrowing the distances between cargo and end-markets. This collaboration is a testament to our commitment to providing efficient, reliable, innovative logistics solutions. The Shenzhen-to-Clark service is the next important step we are taking towards making a major impact in the air cargo landscape and enhancing global trade connectivity."

JD Airlines was formally established in 2019, making Nantong Xingdong International Airport its primary operational hub. The airline strategically centers its operations in key cities, including Nantong, Beijing, Shenzhen, Hangzhou, and Wuxi. It has a strategic presence in the air cargo market across the three major domestic economic sectors. Recently, JD Airlines successfully inaugurated international cargo routes such as "Shenzhen = Ho Chi Minh" and "Nanjing = Dhaka". JD Airlines is committed to concentrating on the international air cargo market, constructing an independent, controllable, secure, and reliable air cargo logistics network that spans both domestic and foreign territories.

About Jayud Global Logistics Limited

Jayud Global Logistics Limited is one of the leading Shenzhen-based end-to-end supply chain solution providers in China, focusing on cross-border logistics services. Headquartered in Shenzhen, the Company benefits from the unique geographical advantages of providing a high degree of support for ocean, air, and overland logistics. The Company has established a global operation nexus featuring logistic facilities throughout major transportation hubs in China and globally, with footprints in 12 provinces in Mainland China and 16 countries across six continents. Jayud offers a comprehensive range of cross-border supply chain solution services, including freight forwarding, supply chain management, and other value-added services. With its strong service capabilities and research and development capabilities in proprietary IT systems, the Company provides customized and efficient logistics solutions and develops long-standing customer relationships. For more information, please visit the Company's website: https://ir.jayud.com.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs, including the expectation that the Offering will be successfully completed. Investors can identify these forward-looking statements by words or phrases such as "may", "will", "expect", "anticipate", "aim", "estimate", "intend", "plan", "believe", "is/are likely to", "potential", "continue" or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the SEC.

For more information, please contact:

Jayud Global Logistics Limited
Investor Relations Department
Email: ir@jayud.com  

Investor Relations Contact:
Matthew Abenante, IRC
President
Strategic Investor Relations, LLC
Tel: 347-947-2093
Email: matthew@strategic-ir.com

View original content:https://www.prnewswire.com/news-releases/jayud-announces-new-air-charter-service-agreement-with-jd-airlines-302018460.html

SOURCE Jayud Global Logistics Limited

FAQ

What is the new air charter service agreement announced by Jayud Global Logistics Limited (NASDAQ: JYD)?

Jayud Global Logistics Limited (NASDAQ: JYD) has announced a significant new air charter service agreement with Jiangsu Jingdong Cargo Airlines to establish a new charter service on the Shenzhen-to-Clark, Philippines route, with over 100 round trips planned to boost cargo capacity and trade relations.

When will the new charter service on the Shenzhen-to-Clark, Philippines route commence?

The new charter service on the Shenzhen-to-Clark, Philippines route is set to commence on December 16, 2023.

What is the focus of the new air charter service agreement between Jayud Global Logistics Limited (NASDAQ: JYD) and Jiangsu Jingdong Cargo Airlines?

The focus of the new air charter service agreement is to significantly enhance the cargo capacity and efficiency between China and the Philippines, reflecting the growing trade relations between the two countries.

Who is the Chairman of the Board and CEO of Jayud Global Logistics Limited (NASDAQ: JYD)?

Xiaogang Geng is the Chairman of the Board and CEO of Jayud Global Logistics Limited (NASDAQ: JYD).

When was JD Airlines formally established?

JD Airlines was formally established in 2019, making Nantong Xingdong International Airport its primary operational hub.