Maersk Distribution Services Inc. now part of Damco?

Damco, the logistics arm of A.P. Moller-Maersk and one of the world’s “top 20” providers of freight forwarding and supply chain management solutions, has announced that Maersk Distribution Services Inc. (MDSI) will be integrated into Damco.

Ranked number 17 in a recent global overview by the consultancy of Armstrong & Associates, Damco appears to be poised for growth.

“This seems like a good time to consolidate global operations,” said Tom Mathers, a spokesman for the National Customs Brokers and Freight Forwarders Association (NCBFAA). “That is particularly true if it enhances economy of scale.”

MDSI generates around $200 million in revenue per year in the U.S.. and Canada and employs more than 600 people. It is a warehousing and distribution company which delivers cross-docking, transload, warehousing and inland transportation services to shippers from its 18 facilities in the major ocean and rail gateways in North America.

According to spokesmen, this establishes a “critical link” between the international and domestic supply chains of many customers.??

“MDSI has during the last years re-organized, optimized and upgraded their facilities and are now well positioned for growth,” said Rolf Habben-Jansen, CEO of Damco in a statement.

He added that by integrating MDSI with Damco, shippers sourcing from overseas will benefit from systematic integration between the international supply chain to the domestic distribution, and it enables postponed decision making for final allocation of cargo to each store.

Delivering what it calls “cost and carbon efficient transportation and distribution services,” Damco is positioned to build a transparent supply chain to end-users and point-of-sale.

“The MDSI team is a natural extension to Damco. MDSI substantially enhances our offerings to the market and enables us to extend the scope of the services we offer to our valued customers” said Habben-Jansen