DB Schenker Logistics

Service levels rise in tandem with investment

Under the terms of the deal, DB Schenker said it will acquire all outstanding shares of USA Truck common stock for $31.72 per share in cash, adding that the transaction values USA Truck at roughly $435 million, including assumed cash and debt.

The company said that the expansion is comprised of an additional 5,000 square-feet (SF) of cold room and 50,000 (SF) of controlled room temperature space. And it added that this facility, which the company opened in 2006, also incorporates 9,000 SF of +2C to +8C space, 100,000 SF of +15C to +25C space, and dedicated capacity on its own-controlled flights to and from Luxembourg, which, along with Luxembourg serve as major centers of vaccine/pharmaceutical activity.

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State of 3PL: More mergers and aquisitions on the horizon

In an announcement that has many global implications for one of world’s largest logistics providers, DB Schenker has developed a streamlined logistics and transportation system for Airbus’ final assembly line production in Mobile, Ala.

The trend set over the past few years for mergers and acquisitions has hardly subsided, and a fresh injection of equity investment is transforming the marketplace. At the same time, shippers may expect to see 3PLs continue to purchase high-tech “solutions” and hire young professionals for implementation.

Executive editor Patrick Burnson and a panel of ocean shipping analysts examine the range of flexibility in the methods available to shippers and forwarders and what kind of strategies should be put in place now.

Given the uncertain nature of the economy, coupled with lessons learned from DHL Express in the U.S. and how it was forced to exit the U.S. market not all that long ago, this seems like the right move by Schenker. After all, should things improve, it can always come back with dedicated air cargo service here in the U.S.

Less than a month after reports indicated that Deutsche Bahn was considering shuttering its United States-based DB Schenker Logistics, a third-party logistics, trucking, and airfreight services provider, Schenker Inc. said late last week it is making significant changes to its North American business model.

The report stated that Deutsche Bahn management is considering restructuring Schenker’s U.S. business but added a withdrawal is more possible. And it added that Schenker management was due to deliver a business update by mid July and Deutsche Bahn executives plan to take a decision on the future of its U.S. business by the end of the year, possibly as early as August.