China Logistics Group, Inc. (CHLO) Targeting South America for Company Growth

China Logistics Group is an American freight forwarding and logistics company doing business in China through its subsidiary, Shandong Jiajia International Freight & Forwarding Co., Ltd. (“Shandong Jiajia”). Shangdong Jiajia was established in 1999 as an agent for international freight and shipping companies. It continues in this capacity today, selling cargo space and arranging land, maritime, and air international transportation primarily for the export of goods from out of China.

China Logistics Group has a regional office in China’s largest seaport city, Qingdao, China, and operates offices in Shanghai, Xiamen, and Lianyungang. In the United States, the company operates offices near Los Angeles in Paramount, California. Through Shandong Jiajia, China Logistics Group leverages key relationships with agents in North America, Europe, Australia, Asia, and Africa for facilitation of freight shipments. Shandong Jiajia has cemented itself as a reputable freight forwarding and logistics services provider, having worked with globally known shipping companies such as Nippon Yusen Kaisha, Nedlloyd, and Regional Container Lines. In 2014, China Logistics Group has expressed interest in strengthening its service outreach to South America due to growing trade relations between China and the greater Latin American region.

An article on BusinessSpectator.com showcases the growing trading relationship between these two regions. In the space of ten years (2004-2014), China-Latin America trade volume has shot past $250 billion per year, and China is on track to passing the European Union as Latin America’s second largest export market by 2016. Exports to China from Latin America are largely commodity-based, but Chinese exports of some segments of final goods to key regions in Latin America have been strengthening. For instance, the Chinese Association of Automobile Manufacturers recently announced that South America has emerged as its strongest automobile export market as a result of rapid year-to-year growth. In 2013, China’s auto exports to South America saw a year-on-year increase of 18 percent from 2012. Other factors, such as strong economic growth in major South American countries, have increased South America’s viability as a regional trade market.

Having begun freight forwarding shipping services to South America from China in 2012, China Logistics Group has been establishing agent relationships with South American companies. The company recently announced the formation of agent relationships with two companies, CMA CGM and Evergreen International Corp., which the company anticipates will lead to a freight shipping volume of 5,000 TEU (twenty foot equivalent units).

In the future, China Logistics Group’s management anticipates that South America will emerge as one of the company’s strongest and most profitable shipping routes. China Logistics Group is also focusing on company growth through strategic acquisitions and mergers. It is doing due diligence on one strong, prospective candidate and hopes to have completed at least one acquisition by the end of fiscal 2014.

For more information about China Logistics Group, please visit www.chinalogisticsinc.com

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