Jayud's Strategic Air Cargo Expansion: A High-Conviction Play in Cross-Border E-Commerce Logistics

The global cross-border e-commerce logistics sector is undergoing a seismic transformation, driven by surging demand for international goods and the rapid digitization of supply chains. At the forefront of this evolution is Jayud Global Logistics, a company that has strategically positioned itself in high-growth corridors such as China-Indonesia and Asia-Pacific to U.S. routes. By leveraging tailored air cargo services, cross-border hubs, and U.S. fulfillment centers, Jayud is not merely adapting to market trends but actively shaping them. This analysis evaluates Jayud's operational scalability and profitability in these niche corridors, arguing that its strategic bets align with the explosive growth of cross-border e-commerce and offer compelling long-term value.

Strategic Corridors: Precision in High-Growth Markets

Jayud's expansion into the Fuzhou-Jakarta air cargo corridor exemplifies its focus on niche, high-demand markets. In March 2025, the company launched a dedicated chartered service using a Boeing 737-800 aircraft, capable of transporting 18 tons of lithium-ion batteries per flight under IATA guidelines. This route addresses a critical gap in the e-commerce supply chain, as lithium-ion batteries-essential for electronics and renewable energy products-are increasingly traded between China and Southeast Asia. By securing this corridor, Jayud taps into Indonesia's growing appetite for Chinese goods and its own expanding manufacturing base.

Complementing this is the Ezhou Huahu Airport hub, launched in October 2025, which serves as a strategic node for China's aviation logistics network. The facility, designed to process over $70 million in annual trade, underscores Jayud's ability to integrate cross-border e-commerce with domestic logistics infrastructure. Meanwhile, its U.S. expansion-marked by two 119,000-square-foot warehouses in Rialto, California- positions the company to capitalize on the U.S. market's 23.7% CAGR in cross-border logistics demand. These warehouses, located near major transportation hubs like Ontario International Airport and Amazon's fulfillment centers, provide last-mile solutions critical for e-commerce sellers navigating complex U.S. supply chains.

Financial Resilience and Profitability: A Recovery Story

Jayud's financial trajectory reflects the challenges and opportunities of scaling in volatile markets. Revenue grew from $70 million in 2023 to $79 million in 2024, a 12.86% increase, despite a dip to $94 million in 2022. However, the company's profitability turned around in the first half of 2025, with net income reaching $0.3 million-a stark contrast to the $2.7 million loss in the same period of 2024. This recovery was fueled by a 4.5% reduction in cost of revenues, partly attributed to a $4.2 million government subsidy for its charter flight operations.

While Jayud's net profit margin remained at 0% as of June 30, 2025, the company's strategic investments are beginning to yield returns. The Rialto warehouses, for instance, achieved 95% occupancy and full booking for the 2025 holiday season, indicating strong demand for its U.S. logistics services. Moreover, the international trading segment contributed 42.9% of total revenues in H1 2025, highlighting the growing importance of cross-border e-commerce in Jayud's revenue mix.

Industry Tailwinds: A Market in Hypergrowth

Jayud's strategic corridors are not just niche-they are central to the global cross-border e-commerce boom. The Asia-Pacific region, which accounted for 42.8% of the global cross-border logistics market in 2024, is projected to grow at a 27.5% CAGR from 2025 to 2030. Similarly, the China-Indonesia corridor is expanding rapidly, driven by Indonesia's $121 billion logistics market and China's $16.84 billion cross-border logistics sector, which is expected to grow at a 27.9% CAGR.

Jayud's focus on these corridors aligns with broader industry trends. For example, the U.S. market's 23.7% CAGR is being fueled by consumer demand for international products and government policies like the USMCA. Meanwhile, Southeast Asia's logistics infrastructure is evolving rapidly, with Indonesian companies like Master Bagasi leveraging cross-border logistics to export to 90+ countries. Jayud's investments in smart logistics and bulk shipping models further position it to meet the sector's demand for speed and cost efficiency.

Risks and Considerations

Despite its strategic advantages, Jayud faces challenges. The company's net profit margin of 0% in H1 2025 suggests that scaling operations may pressure margins in the short term. Additionally, the cross-border logistics sector is highly competitive, with players like Shopee and Temu innovating in delivery solutions. However, Jayud's focus on specialized corridors-such as lithium-ion battery transport-and its integration of U.S. fulfillment centers provide differentiation.

Conclusion: A High-Conviction Play

Jayud Global Logistics is a compelling case study in strategic precision. By targeting high-growth corridors with tailored infrastructure-whether through chartered air cargo, cross-border hubs, or U.S. warehouses-the company is capitalizing on the structural shift toward global e-commerce. Its financial recovery, driven by government support and operational efficiency, signals resilience. With the global cross-border logistics market projected to reach $463.68 billion by 2030 at a 25.4% CAGR, Jayud's investments are poised to deliver outsized returns. For investors seeking exposure to the logistics revolution, Jayud represents a high-conviction opportunity.