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.
Top 30 Cargo Airports 2009
A reader named Greg alerted to us that we haven’t posted an updated list of the top cargo airports in the world for some time (thanks). While I haven’t received or found an updated top 50 list from Air Cargo World or elsewhere, there is this handy list that gets reported by Airports Council International:
Click on the image above for a larger view that you can print or download. For your easy reference, here’s a simple and quick list just by name:
Rank Airport
1 MEMPHIS (MEM)
2 HONG KONG (HKG)
3 SHANGHAI (PVG)
4 INCHEON (ICN)
5 PARIS (CDG)
6 ANCHORAGE (ANC)*
7 LOUISVILLE (SDF)
8 DUBAI (DXB)
9 FRANKFURT (FRA)
10 TOKYO (NRT)
11 SINGAPORE (SIN)
12 MIAMI (MIA)
13 LOS ANGELES (LAX)
14 BEIJING (PEK)
15 TAIPEI (TPE)
16 LONDON (LHR)
17 AMSTERDAM (AMS)
18 NEW YORK (JFK)
19 CHICAGO (ORD)
20 BANGKOK (BKK)
21 GUANGZHOU (CAN)
22 INDIANAPOLIS (IND)
23 NEWARK (EWR)
24 TOKYO (HND)
25 LUXEMBOURG (LUX)
26 OSAKA (KIX)
27 SHENZHEN (SZX)
28 KUALA LUMPUR (KUL)
29 DALLAS/FORTWORTH (DFW)
30 MUMBAI (BOM)
Airfreight Shows Continued Improvement
Global airfreight demand continued to show improvement during the month of March. According to a recent report from IATA.org, demand for airfreight increased 28.1% compared to March of 2009. While the signs are positive and point to a continued recovery in global airfreight, the March numbers are compared to same time period in 2009, which was near the low point of the recession.
Via IATA.org:
“March results show that the pace of the upturn is strong. But the trauma of the recession is not over. The industry has lost two years of growth, and passenger and freight markets are still 1% below early 2008 highs. Nonetheless, the pace of improvement, based on an improving global economic situation, is much faster than anybody would have expected even six months ago,” said Giovanni Bisignani, IATA’s Director General and CEO.
The good news is that global airfreight is now within 1% of it’s high in early 2008. I would expect the cargo numbers to dip slightly in April due to the Icelandic volcanic eruption which shut down European air travel for 6 days.
Nearly all regions showed outstanding growth, with the Latin America region leading the charge with a 47.9% increase. Despite the continued sluggish U.S. economy, U.S. airfreight grew 32.2%.
Lets hope this is a sign of good things to come for the remainder of 2010. According to some of my colleagues on the freight forwarding side of the business, airfreight space out of Hong Kong is extremely tight and rates are on the rise.
