FREEPORT, N.Y.--(BUSINESS WIRE)--DB Schenker today announced a strategic realignment in the way it will serve its North American domestic transportation customers. Under its new operating model, Schenker, Inc. will transition from operating its own dedicated air fleet to a non-fixed asset model. Also, as part of this repositioning, the company will focus on a smaller number of customers who require North American domestic transportation management solutions. DB Schenker’s substantial international air, ocean, contract logistics and warehousing operations remain fully supported and unaffected by today’s announcement.
The phasing out of the U.S. dedicated air fleet, which represents less than 10% of the company’s business in the Americas, will take place over the next several weeks. This action is in response to changing marketplace conditions and along with the renewed focus on transportation management services is aimed at positioning the company for continued growth and success.
“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.
Members of the company’s management team met with employees at the Toledo-based hub location earlier this morning to share the news of this announcement. Approximately 700 employees at this location (primarily part-time positions) will be affected. “We deeply regret that there will be some layoffs as part of this realignment. However, we are working to redeploy as many employees as possible to other parts of our business,” stated Murmann. “Our employees represent the cornerstone of our company and we will treat all affected personnel in an open, transparent and respectful manner throughout this transition.”
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.
“We remain committed to maintaining a strong presence throughout the Americas, including the U.S. and this realignment will help us achieve that goal,” summarized Murmann.