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Sale will make DB Schenker stronger, says new owner DSV

German rail group Deutsche Bahn has signed an agreement to sell DB Schenker forwarding arm to Danish owned logistics giant DSV for € EUR 14.3 billion, or €14.8bn including expected interest.

Deutsche Bahn said that DB Schenker’s central functions are to be retained, including those at DB Schenker’s  location in Essen, Germany and anticipated that five years from now, the combined organization will have more employees in Germany than Schenker and DSV have today. Social commitments, would protect jobs, and will apply for two years after completion of the transaction.

DSV said it would invest around one billion euros in Germany over the next three to five years.

The agreement is subject to final approval by the Supervisory Board of Deutsche Bahn AG and the German Federal Government in and the transaction is expected to be complete during 2025.

Deutsche Bahn said the proceeds from the sale will remain entirely within the DB Group and will significantly reduce debt and allow it to focus on and invest in its core rail business.

DSV group chief executive Jens H. Lund, Group said: “We have a clear plan for how we want to become one of the world’s leading transport and logistics company together. Hand in hand and under one roof, the employees of DSV and Schenker will combine our strengths to create a true global leader in the industry. This strategic combination with significant investments in competitiveness will ensure long-term growth and create sustainable jobs in Germany.”

Deutsche Bahn chief executive Richard Lutz said: “The sale of DB Schenker to DSV marks the largest transaction in DB’s history and provides our logistics subsidiary with clear growth prospects. We are focusing our business on rail infrastructure in Germany that serves the common good as well as on climate-friendly passenger and freight transport in Germany and Europe.”

He added that DB Schenker will gain a financially strong owner and new growth prospects with DSV. With its leading position in numerous markets, DSV opens up considerable potential for DB Schenker and would create a global leader in transport and logistics, with DB Schenker as a pivotal pillar. Germany as a logistics location will benefit considerably from this.

Chief executive of DB Schenker, Jochen Thewes, added: “With more than 150 years of experience, DB Schenker is one of the strongest and most innovative teams in transportation and logistics. The last few years have been the most successful in our company’s history and we have proven that DB Schenker is fit for the future. We are excited about the future prospect of our combined businesses. Together with DSV, our goal is to transform the industry and build a truly global leader with common European roots – for the benefit of our employees and our customers.”

Deutsche Bahn launched the sales process for its logistics arm in December 2023. Other bidders included AP Moller-Maersk, which dropped out of the bidding in July, leaving a two horse race between DSV and  investment firm CVC Capital Partners.

DB Schenker has around 72,700 employees at over 1,850 locations in more than 130 countries, offering land, air and sea freight transport, logistics solutions and global supply chain management.

Lufthansa to launch Vietnam-Los Angeles freighter link

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Lufthansa Cargo has published its winter timetable, including a weekly B777F freighter connection from Ho Chi Minh City (Vietnam) to Los Angeles. The flight, which originates at the carrier’s Frankfurt hub in Germany will the carrier’s first direct connection from the Asian country to the US.

The German airline is also increasing its frequencies from Germany to destinations in India and China, following the entry into service of its 18th B777F freighter delivered from the Boeing plant in Seattle to Frankfurt in mid-August.

The short-haul A321F fleet will operate up to 34 weekly medium-haul and short-haul flights connecting the carrier’s hubs at Frankfurt and Munich, including the new direct connection from Munich to Istanbul – the carrier’s first freighter service at the southern German airport.

It is increasing its freighter capacity to Mumbai and Taipei by one flight per week. Chennai will be served twice weekly in combination with Hyderabad or Mumbai. With the recent addition of Shenzhen and Zhengzhou to its network, the carrier now offers 50 flights a week to Asia.

The freighter rotation from Frankfurt via Tel Aviv to Cairo will be increased by one weekly flight, operated by a B777F.

Lufthansa Cargo chief executive, Ashwin Bhat,  said: “With a comprehensive review of our existing schedule and network, we have been able to optimize our rotations. In the future, some of our freighters will have fewer stopovers, allowing our customers to benefit from direct connection and transportation of their freight within our global network.”

DHL ready for the rush

DHL Express is investing over €100 million in transport and handling capacity in the fourth quarter in anticipation of increased demand for express services during the traditional end-of-year peak season.

The company is investing in eight new Boeing 777 freight aircraft on trans-Pacific and intercontinental routes between Asia and Europe, It has also invested in additional handling and sorting capacity in its ground network, including in its aviation facilities in, for example, Atlanta, East Midlands, Copenhagen, Cologne, Paris and Brussels to allow for more flexible flying schedules and the ability to reroute cargo in the event of heavy demand or disruption. 

Sustainable Aviation Fuel is also being used in the DHL Express aircraft fleet to reduce CO2e emissions, with the Scope 3 reductions achieved passed on to customers in the form of certificates.

Chief executive, John Pearson, said: With ongoing volatility in global freight markets and a continued strong flow of e-commerce volumes, we are expecting a healthy surge in demand for express services in the fourth quarter. We are making the necessary investments to maximize the resilience of our global network and make our customers successful during a demanding 2024 peak.”

Philippine Airlines on Cargo.one

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Philippine Airlines is to put its cargo capacity on the digital Cargo.one booking platform. The carrier operates 37 international destinations throughout South and East Asia, North America, Australia and the Middle East, along with 32 destinations in the Philippines. From Autumn 2024, forwarders using cargo.one can quote and book capacity for general cargo and perishables between hubs in Manila, Cebu, Clark, and Davao with major cargo destinations worldwide.

American restarts Edinburgh flights

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American Airlines is to reintroduce flights to Edinburgh, Scotland in its summer schedule next year. A daily 787-8 service from Philadelphia will start on May 23. It will also expand its schedule to Italy with new services from Miami to Rome with a 777-200 from July 5 and from Philadelphia to Milan with a 787-8 from May 23. There is also a new 777-200 service from Charlotte, North Carolina to Athens from June 5, one of four daily flights to Greece in 2025. American will also connect its Chicago O’Hare hub with Madrid for the first time from March 30 with a daily 787-8.

UPS to buy German healthcare specialists

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UPS has agreed to acquire German-based healthcare logistics provider Frigo-Trans and its sister company BPL, for an undisclosed sum. Frigo-Trans’ network includes temperature-controlled warehousing that covers six temperature zones from cryopreservation (-196°C) to ambient (+15° to +25°C), a pan-European cold chain transportation solution and temperature-controlled and time-critical freight forwarding capabilities. The transaction is expected to close in the first quarter of 2025, subject to regulatory reviews and approvals.

Pharma partners offer clinical trial solution

Temperature-controlled container specialists Tower Cold Chain and Cryopdp have partnered to provide an expanded range of logistics solutions for clinical research. Tower Cold Chain is incorporating Cryopdp’s liquid nitrogen-filled dry vapour shippers for ultra-low temperature goods, which maintain temperatures from -196°C to -150°C. In return, Cryopdp will offer its customers Tower’s fully reusable small box including 12-litre, 26-litre, and 57-litre options for small payloads and last-mile delivery at -80°C to +20°C.

Delta Cargo chief joins Maastricht board

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Delta Airlines Cargo president Peter Penseel has joined the board of Maastricht Aachen Airport, the Netherlands’ second largest cargo hub.

He brings over 30 years of experience in airfreight, including senior roles at Qatar Airways, DHL Global Forwarding, UTi, and CEVA Logistics.

The airport has a new management structure following investment from the Royal Schiphol Group, owners of Amsterdam Schiphol Airport.

The supervisory board, which is tasked with steering future growth at the airport, is made up of experts in various disciplines within aviation and business, including Frans Weekers, Angelique Palmen and Amsterdam Airport Schiphol’s Kjell Kloosterziel.

MST last year invested €35.3 million to upgrade its runway as part of an ongoing €100 million infrastructure development plan.

E-commerce market is growing, and diversifying, says Rotate chief

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The e-commerce airfreight market is diversifying, Ryan Keyrouse, chief executive of software company Rotate told the Cross-Border e-commerce Forum in Liege, Belgium. While China to the US and Europe indeed experienced the largest tonnage growth over the last two years in absolute terms, China to Malaysia and Mexico combined added as many e-commerce tonnes as Europe – with year-on-year growth rates of 46% and 73%, respectively.

An early Rotate survey of the 450 delegates on various e-commerce trends showed that while half the delegates believed e-commerce growth came on top of a growing general cargo market, trade data indicates the general cargo market over the last two years was flat at best.  The survey also revealed the biggest risks to e-commerce growth was not changes to De Minimis thresholds, but rather security concerns from misdeclarations and politically motivated policies.

Delegates also highlighted unprepared airport facilities and staff, and unbalanced flows, with the growing imbalance leading to increasing gaps in freighter profitability.

Looking ahead to 2025, Keyrouse said that delegates were split between e-commerce continuing its aggressive growth and maturing to a more moderate growth, while a small minority thought e-commerce volumes had peaked.

Aramex opens in Aberdeen, Scotland

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The UK arm of Middle East-owned freight forwarder Aramex has opened a branch in Aberdeen.

It will also invest in a new warehousing facility at the port, a major gateway for the North Sea oil and gas industry.

The new facility will offer services including air, ocean, and road freight, warehousing and courier solutions.

The branch will be led by Adam Demus, as branch manager.