DB Schenker to Realign North America Transportation Model
July 24, 2011 by Splatty
Filed under Air Cargo, Integrators
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.
Asia Air Cargo Demand Declines 9.8 Percent
According to a press release from the Association of Asia Pacific Airlines, air freight volume in May declined 9.8 percent when compared to the same time last year. Despite a 4.7 percent reduction in freight capacity, the average international freight load factor fell by 3.9 percentage points to 68.8 percent for the month.
Commenting on the results, Mr. Herdman (AAPA Director General) said the following:
Over the first five months of the year, Asian airlines have seen 2.5 percent growth in the number of international passengers carried, whereas international air cargo traffic has declined 2.4 percent during the same period. The combination of slower revenue growth and sharply higher fuel costs means airlines operating margins are under severe pressure. Continued vigilance in controlling costs, and carefully matching capacity to the projected changes in demand will be the key to sustaining profitability.
Mr. Herdman also suggested that the decline in volume reflects some moderation in the pace of global economic growth when compared to a very strong rebound in global demand that we experienced last year.
It will be interesting to see if demand picks up as we head into the second half of the year.
2011 Ocean Rates
March 30, 2011 by Splatty
Filed under Seafreight
The first round of carrier negotiations are in the books for my company and as usual carrier rates are all over the board. With all of my responses in, the average difference between the lowest offering and the highest is roughly $700 to $800 per 40′ out of China base ports to the US. Needless to say, those on the high end were quickly eliminated. In looking at the most competitive offers this year, it appears that my overall cost per 40′ container will dip slightly from last year’s rates even with the recent increase in BAF. I would be curious to know if your ocean rates increased, decreased, or remained constant. Drop us a line and let us know.
Diesel prices up 14.3 cents per gallon
March 2, 2011 by Splatty
Filed under Misc Logistics
Not good. Citing unrest in the Middle East, diesel prices increased 14.3 cents to settle in at a national average of $3.716 per gallon, the highest since 2008.
Via JOC.com:
