WCS embarks on aggressive growth strategy

World Cargo Services plans to “aggressively expand” its airfreight business in 2012, according to MD Colin Atkins and head of airfreight operations Colette Smith. “Success in moving air freight has a lot to do with the flexibility of the company that is shipping. In the past, everyone would demand direct air freight out of the US. It’s a habit. SAA has an overnight flight from Washington to Johannesburg. It’s quick and fast and it’s a mindset for many shippers. But the rates are inflexible and there are limits to capacity,” said Smith. Looking at other options for its customers, WCS found cheaper ways to move air cargo on the US-SA route. “There is a necessity to educate the customer base. There are other airlines that can be options coming to SA via Europe,” said Atkins. The slightly longer transit times are actually not a problem for shippers who would otherwise find their cargo delayed on departure from the US on a direct flight to Jo’burg. “Rather than having their heavy cargo bumped once or twice before it comes over, we recommend use of an alternative route that is cheaper and the cargo arrives at the same time. Because of the spacing problem the clients are more open to alternatives, and the pricing is a lot better for them,” said Smith. The US is one of WCS’s main air cargo routes, and as Atkins explained: “The economy is not that rosy. People are still holding their stock at a minimum, so we are not seeing a major increase in volume, and the levels are likely to remain that way with the US. European general cargo still remains depressed. That said, more and more cargo is coming out of the East. That’s a trend. There are project-related opportunities, mining for example, in the Far East.” WCS is well known for sea freight transport, so a marketing campaign is being mounted this year to promote its air cargo service. “We are very optimistic about our airfreight products. We have taken into account the growth in 2011, when we saw volumes increase by 35%, and we are looking forward to doing the same this year, with our competitive pricing and the right distribution of hubs,” said Smith.