Ecommerce will boost demand for air cargo, says chief of handler WFS

The head of one of the world’s largest air cargo handlers has brushed off the deteriorating outlook for global trade, arguing that the rise of ecommerce and growing demand for faster deliveries are driving a long-term shift towards moving goods by plane. Worldwide Flight Services CE Craig Smyth said that air cargo, historically a relatively small part of the global supply chain, was playing an increasingly significant role as more shipping groups invested in aircraft fleets. “We’re pretty excited about [that] growth,” he said. “Because of ecommerce . . . there’s definitely a shift that is structural, that is permanent,” he said. Online shopping deliveries now account for a fifth of the cargo that WFS is moving in some parts of the world. Paris-based WFS, which provides ramps, cargo handling and other on-the-ground services to airlines, is one of several companies involved in a dealmaking spree in the air cargo sector. In September, Singapore ground handling business Sats completed a E1.2b takeover of WFS, a move that the companies said would create the industry’s largest group in terms of cargo volume handled. Meanwhile, the world’s biggest shipping container group, Geneva-based Mediterranean Shipping Company (MSC), is preparing to launch its first air cargo service in the coming months following a bid earlier this year to acquire a majority stake in ITA Airways, successor to bankrupt Alitalia.<br/>