Singapore-headquartered SATS Ltd, the world’s largest provider of air cargo handling services and Asia’s pre-eminent provider of food solutions, has signed a Memorandum of Understanding (MoU) with SF Group, the leading express delivery and logistics service provider in China and globally, to expand their strategic collaboration and supply chain optimisation into a global footprint.
SATS and SF Group will combine their respective areas of expertise and service offerings as well as those of their affiliate companies, including Worldwide Flight Services (WFS), a member of the SATS Group, and SF Airlines, the Chinese cargo airline owned by SF Group.
The partners will initially look at expanding the successful collaboration of the existing hub operations in Singapore and eCommerce handling in Liege, Belgium to other global hubs. These include the hub operations in Kuala Lumpur, Malaysia and exploring Proof of Concepts (PoCs) for eCommerce handling in Beijing and at New York’s JFK International Airport. The partners will also identify and build other network solutions or specialised services from more than 200 locations where SATS is present with SF Group’s extensive demand channels, which is currently the world’s 4th largest integrated logistics provider and is based in China.
Growth opportunities for the SATS and SF Group collaboration will be enhanced by the continued expansion of the global eCommerce market forecast to grow by 8.8% in 2024 to USD 6.3 trillion, and to USD 7.9 trillion by 2027, as per a release.