Tuesday, June 21, 2011

Freight Giant Deutsche Bahn Denies Plans to Close DB Schenker Logistics in USA

Will Continue Growth Strategy in the Americas and US
Shipping News Feature

GERMANY / USA – Following on from reports in the Financial Times Deutschland earlier today that Deutsche Bahn was planning to close down its DB Schenker Logistics operation in the United States the freight giant has confirmed that it is fully committed to maintaining its American operations for the foreseeable future.

In a preliminary statement Deutsche Bahn said:

‘With over $3 Billion in revenue, around 10,000 people, and over two hundred locations, DB Schenker is, and will continue to be, a significant logistics player throughout all of the Americas including the United States. DB Schenker continues to expand its presence and build on its U.S. market position in the international air and ocean freight operation (#2 in air freight and #4 in ocean freight) and on its significant contract logistics and supply chain management business (ranked #5).

‘In these areas, the performance of DB Schenker is strong – fiscal 2010 was significantly profitable both in the Americas and in the United States. DB Schenker will continue to realize and plan double-digit annual growth.

‘As part of the acquisition of BAX in 2006, DB Schenker bought a North American Domestic operation that is active in Canada, the United States, and Mexico. This network is comprised of a dedicated network of airplanes and a very dense trucking network of over 2000 departures/day. The ground network continues to grow at a double-digit pace.

‘However, the economic crisis and escalating fuel costs have created challenges to the dedicated air fleet. This segment represents approximately 10 percent of our business.

‘“We have, and continue to work on adapting the aircraft network to the market conditions,” says Heiner Murmann, CEO and President of Schenker, Inc. in Freeport, New York.

‘“In addition to the reduction of aircraft from 40 to the current 20 over the past several years, we are exploring ways to additionally adapt this part of the business to further address the market realities while continuing to serve our customers. We have a number of alternatives available including improving and restructuring the operation and/or partnering with other providers. We are currently studying the best option and will define the optimal path forward in the next two months,” stated Murmann on Tuesday.

‘DB Schenker Logistics continues to be dedicated to providing comprehensive logistics solutions in the Americas and the United States. DB Schenker continues to be successful in international air and ocean freight, contract logistics, and ground operations within North America.

“We are confident in our people, our capabilities, and our performance,” says Murmann’.