DB Schenker

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DB Schenker
TypeLogistics, freight transport
PredecessorSchenker Stinnes Logistics
Headquarters,
Area served
Worldwide
Key people
  • Jochen Thewes
    (CEO)
    Oliver Seidl
    (CFO)
  • Thorsten Meincke
    (COO Air & Ocean)
  • Christian Drenthen
    (COO Land Transport)
  • Xavier Garijo
    (Board Member Contract Logistics)
  • Christa Koenen
    (CIO/CDO)
  • Katharina Rath
    (CHRO)
ProductsTransportation and logistics
Revenue€16.4 billion[2]
Number of employees
72,000[1]
ParentDeutsche Bahn
DivisionsLand Transport, Air Freight, Ocean Freight, Contract Logistics, Lead Logistics
Websitewww.dbschenker.com

DB Schenker is a division of German rail operator Deutsche Bahn that focuses on logistics. The company was acquired by Deutsche Bahn as Schenker-Stinnes in 2002. It comprises divisions for air, land, sea freight, and Contract Logistics.

History[edit]

DB Schenker

In his biography, then CEO of Deutsche Bahn Hartmut Mehdorn justified the acquisition of international logistics companies with customer demand. In 2000, analysis had shown the 200 largest customers ship up to 60% of their freight abroad.[3] Since the core operating territory had been Germany, customers were lost to competitors with a more compelling international offer. There was no time to grow organically in such markets.[4] This analysis led to the acquisition of Stinnes AG and the associated brand name Schenker. Since December 2007 DB Schenker has been the freight logistics subsidiary of Deutsche Bahn. DB Schenker combines all transport and logistic activities of Deutsche Bahn (except rail cargo), employing over 72,000 staff spread across about 2,000 locations in about 140 countries. In 2021, DB Schenker cooperated with logistics startup Volocopter to introduce heavy-lift drones.[5][6] The same year, the company launched Schenker Ventures, its own venture capital arm to invest in innovation in the logistics industry.[7][8] Schenker Ventures announced its first investment in German logistics startup Warehousing1.[9][10][11]

Organization[edit]

Schenker AG and its many subsidiaries handle worldwide logistics operations including Land Transport, Air and Ocean Freight as well as Contract Logistics/SCM, and is part of the DB Schenker organization. Since 2016, rail freight business no longer operates under the brand DB Schenker Rail. Instead, it operates as a standalone business unit under the brand name DB Cargo in Deutsche Bahn Group.[12]

Key Customers[edit]

DB Schenker serves many global and local firms across all industries. Notably, DB Schenker manages large and complex supply chains for multinationals such as Apple,[13] Procter & Gamble,[14] Dell,[15] ASML,[16] BMW[17] and many more.

Controversies[edit]

In 2016, DB Schenker was convicted for consecutive cases of corruption in St Petersburg, Russia, bribing local customs officials from 2010 to mid-2012. At the time, DB Schenker involved a Russian agency for enabling the rapid flow of shipments to carmaker Ford's St Petersburg facility. DB Schenker had to pay a penalty of €2m.[18]

In September 2015, then and current CEO Jochen Thewes slapped and pushed a cab driver, who refused to pick up a drunken Thewes, in downtown Singapore. He also kicked the car and caused damage. Thewes was eventually sentenced to a fine of S$1000 and two weeks of jailtime in Singapore.[19]

In 2020, DB Schenker was accused of unfair price dumping during the COVID-19 pandemic and related market turbulences. Allegedly, it was using its status as a state-owned company (as subsidiary of Deutsche Bahn) to request prices from subcontractors below their production costs for some European land routes via the freight exchange Timocom.[20] The company rejected the allegations, pointing out that it has no insights in pricing strategies and production costs of subcontractors. However, it announced it would temporarily refrain from using fixed prices for transports published via freight exchanges.[21]

See also[edit]

References[edit]

  1. ^ a b "About DB Schenker".
  2. ^ "Key Figures 2017 Deutsche Bahn IR". Deutsche Bahn AG. Retrieved 26 January 2019.
  3. ^ "Geschäftsbericht 2001 (p. 13)" (PDF). Deutsche Bahn IR. April 23, 2002. Retrieved May 7, 2019.
  4. ^ Hartmut Mehdorn: «Diplomat wollte ich nie werden». Hoffmann und Campe, Berlin 2007, ISBN 978-3-455-50047-9, p. 114.
  5. ^ "Volocopter unveils heavy-lift delivery drone at ITS World Congress". 13 October 2021.
  6. ^ "DB Schenker and Volocopter launch giant delivery drone". 13 October 2021.
  7. ^ "DB Schenker announces Schenker Ventures for entrepreneurship in logistics". 7 August 2021.
  8. ^ "DB Schenker aims to help start-ups through new business unit". 5 August 2021.
  9. ^ "Berlin-based Warehousing1 snaps up multi-million euro seed funding extension". 26 March 2020.
  10. ^ "Warehousing1 - Ihr Partner für Fulfillment und Lager".
  11. ^ "Meet Warehousing1, the Berlin startup which housed in €10 million to expand fulfilment network in Europe". 7 April 2022.
  12. ^ "DB Cargo". Deutsche Bahn IR. Retrieved 2019-02-17.
  13. ^ "DB Schenker to manage new Apple distribution centre in India - Lloyd's Loading List". www.lloydsloadinglist.com. Retrieved 2019-05-06.
  14. ^ "Procter & Gamble is latest to take over Inland warehouse, shifting 500-plus Schenker staff". Press Enterprise. 2019-03-04. Retrieved 2019-05-06.
  15. ^ "Hoxton Park Grand Opening". DB Schenker. Retrieved 2019-05-06.
  16. ^ "Grand Opening of ASML's TSS Center operated by DB Schenker". DB Schenker. Retrieved 2019-05-06.
  17. ^ "DB befördert 2016 über 40.000 Container zwischen China und Deutschland". DB Schenker (in German). Retrieved 2019-05-06.
  18. ^ "DB Schenker Convicted of Bribery". CargoForwarder Global. 2016-11-06. Retrieved 2019-05-06.
  19. ^ "CEO gets jail for slapping cabby". The Straits Times. 2016-09-15. Retrieved 2019-05-06.
  20. ^ Rathmann, Matthias (2020-04-08). "Frachten weiter unter Druck: DB Schenker lockt mit Billigpreisen". Eurotransport (in German). Retrieved 2020-04-16.
  21. ^ Rathmann, Matthias (2020-05-17). "Nach der Kritik an Billigfrachten: DB Schenker macht keine Fixpreise mehr". Eurotransport (in German). Retrieved 2020-10-23.