The 357 Company (357) is launching the 357 Canna Logistics division as an expansion beyond its 357 Hemp Logistics division that specializes in shipping federally legal hemp within the U.S. 357 Canna Logistics will initially focus on logistics management and shipping of cannabis and hemp between countries that have legalized it. Outside the U.S., countries use the term “cannabis” for non-industrial hemp and cannabis, regardless of THC content, so 357 will refer to all international shipments as “cannabis.”
The cannabis export/import industry is in its infancy, primarily consisting of shipments of non-industrial products, such as CBD isolates and oils with THC <0.3%, due to the regulatory environment.
“The 357 Company is expanding into international shipping of cannabis, hemp and industrial hemp to set the bar high in a nascent industry that is poised for dramatic growth,” stated Kevin Schultz, Co-founder and President of the 357 Company. “Shipping cannabis internationally is extremely complex. A pioneer in international cannabis shipping, 357 Canna Logistics is one of the few companies that has combined experience in cannabis and international logistics.”
“We’re launching 357 Canna Logistics with our launch partner, Flora Growth (NASDAQ: FLGC), and several other cannabis companies, who are currently shipping throughout the EU, UK, US, and South America, with more countries to be added by year-end,” Schultz announced. “Flora Growth is a highly respected global company that develops and produces a diverse collection of wholesale cannabis goods and pharmaceutical-grade consumer brands and products for improved health and wellness. We are proud to fulfill their international logistics management needs, providing superior customer service with a single point of contact, and delivering cannabis safely and securely on time and within budget across multiple countries.”
Jason Warnock, Chief Commercial Officer of Flora Growth, stated, “357’s extensive experience in international freight forwarding, logistics management and operations at major cannabis multi-state operators, coupled with expertise in transport security and pharmaceutical and food delivery, provides the comprehensive knowledge and skill set for managing the complexities of international logistics in the highly regulated cannabis industry. We’re looking forward to growing together in this exciting new market space.”
Global Cannabis Industry Revenue and Import Growth
Currently, the U.S. is the largest importer of cannabis oils, and several countries are starting to significantly increase their cannabis imports and exports. Analysts expect strong cannabis industry growth to continue exponentially for the next few years due to the legalization of cannabis in more countries.
Imports of cannabis, primarily cannabis oils, accounted for USD $3.81 billion in 2021, according to World’s Top Exports. This is only a tiny fraction of the total cannabis market.
ReportLinker projects “The global cannabis market size is estimated to be valued at USD 27.7 billion in 2022 and is projected to reach USD 82.3 billion by 2027, recording a CAGR of 24.3%.” Grand View Research forecasts revenue of USD 134.4 billion by 2030 and noted, “The increasing rate of legalization of cannabis and acceptance of its use in the medical field are the key factors due to which the market is expected to boom.”
357 Canna Logistics Future Growth Strategy
Jeremy Powers, 357 Company Strategic Advisor International Affairs, noted, “Asia is starting to loosen its cannabis restrictions. We expect to add countries in Asia, possibly as early as 2023, then additional countries in Europe, the Middle East, and South America as they legalize cannabis.”
Powers added, “Our international logistics management and shipping services for cannabis are expanding weekly as we build our replicable standard operating procedures and client base in each country. Due to our diverse experience across hemp, cannabis, and logistics, we’ve created a scalable business that is well-positioned to facilitate the industry’s organic growth and shipping of additional product types as the U.S. and other countries ease cannabis use, production, and import/export restrictions. Beyond the international B2B business, we’re also looking closely at last-mile B2C and B2B intrastate delivery of cannabis, as future services. We are prepared to handle third-party logistics (3PL) for U.S. interstate cannabis shipments, when legalized.”