According to the company, under its new operating model, Schenker, Inc. will transition from operating its own dedicated air fleet to a non-fixed asset model, ceasing operations in Toledo.
DB Schenker, owner of Bax Global, Inc. at Toledo Express Airport, has announced a strategic realignment in the way it will serve its North American domestic transportation customers. According to the company, under its new operating model, Schenker, Inc. will transition from operating its own dedicated air fleet to a non-fixed asset model, ceasing operations in Toledo. 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.
According to the company, the phasing out of the US 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," stated Heiner Murmann, CEO of Schenker, Inc.
Approximately 700 employees at Toledo Express (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, the company is currently ranked number two in air freight, number four in ocean freight and number five in contract logistics and supply chain management in North America.
"We remain committed to maintaining a strong presence throughout the Americas, including the US and this realignment will help us achieve that goal," stated Murmann.
