DB Schenker to eliminate BAX freighter fleet

DB Schenker to eliminate BAX freighter fleet    German third-party logistics giant DB Schenker announced Friday that U.S. subsidiary BAX Global will eliminate its dedicated domestic air cargo fleet and instead operate a “non-fixed asset” model by booking customers’ freight on other cargo carriers or chartering aircraft as needed.
   Schenker is the logistics arm of German national railroad Deutsche Bahn.
   As part of its North American restructuring, Schenker will focus managing transportation for a smaller pool of shippers that seek the stability of long-term contracts.
   Phasing out the U.S. dedicated air fleet, which represents less than 10 percent of the company’s business in the Americas, will take place during the next several weeks, DB Schenker USA said.
   BAX, the domestic air freight operator for DB Schenker USA, operates 20 planes from a 279,000-square-foot hub in Toledo, Ohio, which is also being closed. The hub sorts on average 2.4 million pounds of cargo each day. About 700 people work at the hub, but Schenker said it will try to relocate as many as possible elsewhere within the company to minimize layoffs.
   Schenker operates regional and/or international hubs in Atlanta, Dallas, Los Angeles, New Jersey, Miami, New York, Chicago and San Francisco.
   “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,' Heiner Murmann, said chief executive officer of Schenker Inc., in a statement.
   DB Schenker said the closing of the domestic air network does not impact its international freight forwarding or warehousing operations.
   'We remain committed to maintaining a strong presence throughout the Americas, including the U.S., and this realignment will help us achieve that goal,” Murmann said.
   The Toledo-Lucas County Port Authority said it was “incredibly disappointed” about Schenker’s decision after operating for more than 20 years at the Toledo airport.
      The port authority expressed its desire to continue cargo operations without BAX Global. “We believe the combination of the experienced existing workforce and the logistical advantages of the Toledo region and Toledo Express Airport provide a strong framework for these activities,” it said.
   This is the second time in recent years that Ohio’s economy has been hit hard by the departure of German air freight companies. In 2009, Deutsche Post shut down its DHL hub and distribution center in Wilmington, Ohio, eliminating 7,000 jobs, after determining it could not compete with FedEx and UPS in the domestic package arena. DHL had previously closed cargo facilities at Cincinnati airport following its merger with Airborne Express in 2004.
   BAX Global Inc. was founded in 1972 as Burlington Northern Air Freight Inc., and changed its name to Burlington Air Express Inc. in 1985. It further changed its name to BAX Global Inc. in 1997 before being acquired by DB Schenker. ' Eric Kulisch