Schenker shuts down Ohio cargo hub
14 / 05 / 2012
DB Schenker is shutting down its BAX Global cargo hub in Ohio (US) after diminishing demand and high fuel prices.
The company says it will gradually phase out its US dedicated air fleet as part of its ‘realignment’, shifting to a ground-based model.
“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 airfreight, and they are looking for partners who can provide transportation management services rather than transactional transportation,” Heiner Murmann, chief executive officer of Schenker, states.
The blow means approximately 700 employees will be affected at the facility.
“We deeply regret that there will be some layoffs as part of this realignment,” Murmann adds.
"However, we are working to redeploy as many employees as possible to other parts of our business.”
This non-fixed asset model has ramifications for Air Transport Services Group (ATSG), which leases eight DC-8s and eight 727s to the German company, its second largest customer.
“While we are continuing to evaluate that notice in the context of our other communications with DB Schenker, we expect a reduction in our role as a provider of main-deck freighter lift for DB Schenker in North America,” Joe Hete, chief executive officer of ATSG, says.
The BAX shutdown will take 544 metric tonnes of air cargo capacity out of the market.