According to a company press release, German based company DB Schenker has announced a “strategic realignment” of their North American distribution operating model.
Under the realignment, DB Schenker will transition its operations from an asset based model to a non-fixed asset model and will phase out their dedicated US based fleet. This portion of the business represents only 10% of their overall US business which was primarily serviced through their BAX Global integration. The US business serviced by DB Schenker’s international air, ocean, contract logistics and warehousing operations will remain fully operational and is unaffected by this realignment.
The following was given as reasons for the US realignment:
“As a result of the prolonged recession and spiking fuel prices, more and more of our customers are opting for expedited ground-based solutions instead of domestic air freight, and they are looking for partners who can provide transportation management services rather than transactional transportation,” said Heiner Murmann, CEO of Schenker, Inc.
Approximately 700 employees (primarily part-time positions) will be affected. The company has stated that they are working to redeploy as many employees as possible to other parts of the business.
With almost $3 billion in revenue, over 200 locations and in excess of 10,000 employees, DB Schenker is one of the leading logistics providers in the Americas. The company is currently ranked #2 in air freight, #4 in ocean freight and #5 in contract logistics and supply chain management in North America.