Why the Yojee share price rocketed 52% higher today

The Yojee Ltd (ASX:YOJ) share price has rocketed 52% higher on Wednesday following the release of a positive announcement…

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One of the best performers on the Australian share market on Wednesday has been the Yojee Ltd (ASX: YOJ) share price.

This morning the logistics and supply chain management platform provider's shares returned from their trading halt and rocketed as much as 52% higher to 12 cents.

At the time of writing the Yojee share price is up 39% to 11 cents.

Why did the Yojee share price rocket 52% higher today?

This morning Yojee announced a 3-year master services agreement with global logistics provider Geodis Singapore. After which, unless terminated, the agreement will renew for successive 12-month periods.

According to the release, the agreement will govern multiple projects across the Asia Pacific region where Yojee will provide its software as a service (SaaS) logistics and supply chain management technology on a project by project basis on standard commercial terms.

However, at this stage Yojee does not believe the impact of the master services agreement will be financially material due to the variability and difficulty in estimating transaction volumes and project scopes.

What is Geodis Singapore?

Geodis is a top 10 global forwarder and sea, air, and road transport leader.

It is aiming to digitise its logistics operations, optimise efficiency, and enhance customer experience across Asia Pacific for land transport and cross-border logistics.

The latter includes express, line haul, and container trucking, and can be both domestic and across borders in Asia, which is where Yojee's proprietary software provides unique advantages in areas such as visibility, compliance, and invoicing.

Yojee's managing director, Ed Clarke, appeared to be very pleased with the agreement.

He said: "We are excited to be selected for this opportunity as we have strategically aligned ourselves to the current needs of the market with innovative technology and are uniquely positioned both technically and geographically to understand and deliver a solution against the requirements of Geodis, a true global leader. This milestone validates our mantra of any business of any size, and also proves the capabilities of our world leading logistics technology."

Other options in this space on the ASX include logistics solutions company WiseTech Global Ltd (ASX: WTC).

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of WiseTech Global. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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