DB Schenker explained

See also: Schenker AG.

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

Deutsche Bahn ownership, 2007–2024

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]}

Since 2016, the UK operation has operated under the DB Cargo UK brand name. DB Schenker now is the biggest freight operator in the United Kingdom, and also operates the British Royal Train used by the Royal Family.^[7]

In 2021, the company launched Schenker Ventures, its own venture capital arm to invest in innovation in the logistics industry.^{[8] [9]} Schenker Ventures announced its first investment in German logistics startup Warehousing1.^{[10] [11] [12]}

In November 2021, DB Schenker announced a partnership with Swedish electric commercial vehicle manufacturer Volta Trucks after having signed a pre-order of 1,500 Volta Zero vehicles.^[13]

DSV ownership, 2024–present

By 2022, DB Schenker accounted for more than a third of Deutsche Bahn's sales.^[14] In December 2022, the supervisory board of Deutsche Bahn instructed the company's management to prepare for the possible sale of up to 100% of DB Schenker.^[15] In December 2023, Deutsche Bahn eventually launched the sales process.^[16] By early 2024, at least seven companies had made non-binding offers for DB Schenker.^[17] In September 2024, DSV agreed terms to purchase DB Schenker for €14.3 billion.^{[18] [19]}

Corporate affairs

Schenker AG and its 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.^[20] DB Schenker serves global and local firms across several industries. Notably, DB Schenker manages large and complex supply chains for multinationals such as Apple,^[21] Procter & Gamble,^[22] Dell,^[23] ASML.^[24] BMW^[25]

Controversies

• 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.^[26]
• 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.^[27]
• 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.^[28] 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.^[29]

See also

• Gottfried Schenker

External links

• Official website

Notes and References

1. Web site: Key Figures 2017 Deutsche Bahn IR . Deutsche Bahn AG . 26 January 2019 . 27 January 2019 . https://web.archive.org/web/20190127035349/https://ir.deutschebahn.com/en/db-group/at-a-glance/key-figures/key-figures-2017/ . dead .
2. Web site: About DB Schenker.
3. Web site: Geschäftsbericht 2001 (p. 13). April 23, 2002. Deutsche Bahn IR. May 7, 2019.
4. Hartmut Mehdorn: «Diplomat wollte ich nie werden». Hoffmann und Campe, Berlin 2007,, p. 114.
5. Web site: Volocopter unveils heavy-lift delivery drone at ITS World Congress . 13 October 2021 .
6. Web site: DB Schenker and Volocopter launch giant delivery drone . 13 October 2021 .
7. http://uk.dbcargo.com/rail-uk-en/News_Media/news/10867046/new_brand.html The UK's leading rail freight company announces rebrand
8. Web site: DB Schenker announces Schenker Ventures for entrepreneurship in logistics . 7 August 2021 .
9. Web site: DB Schenker aims to help start-ups through new business unit . 5 August 2021 .
10. Web site: Berlin-based Warehousing1 snaps up multi-million euro seed funding extension . 26 March 2020 .
11. Web site: Warehousing1 - Ihr Partner für Fulfillment und Lager .
12. Web site: Meet Warehousing1, the Berlin startup which housed in €10 million to expand fulfilment network in Europe . 7 April 2022 .
13. . DB Schenker announces a new partnership with Volta Trucks to accelerate the transition to an all-electric urban vehicle fleet . Essen, Germany . DB Schenker 2021-11-30 . 2023-05-20.
14. Markus Wacket and Emma-Victoria Farr (8 December 2022), Exclusive: Deutsche Bahn seeks approval for preparation of Schenker sale - sources Reuters.
15. Madeline Chambers (15 December 2022), Deutsche Bahn supervisory board approves preparations for Schenker sale Reuters.
16. Markus Wacket (19 December 2023), Deutsche Bahn launches sales process for logistics arm DB Schenker Reuters.
17. Klaus Lauer (27 March 2024), Up to 10 companies bid for Deutsche Bahn's Schenker, Handelsblatt reports Reuters.
18. News: DSV to create global logistics giant with $15.9 bln Schenker takeover . 13 September 2024 . Reuters . Stine . Jacobsen . Jacob . Gronholt-Pedersen . Rachel . More.
19. https://www.thedcn.com.au/news-repeat/dsv-to-acquire-db-schenker/ DSV to acquire DB Schenker
20. Web site: DB Cargo. Deutsche Bahn IR. en. 2019-02-17.
21. Web site: DB Schenker to manage new Apple distribution centre in India - Lloyd's Loading List. www.lloydsloadinglist.com. 2019-05-06.
22. Web site: Procter & Gamble is latest to take over Inland warehouse, shifting 500-plus Schenker staff. 2019-03-04. Press Enterprise. en-US. 2019-05-06.
23. Web site: Hoxton Park Grand Opening. DB Schenker. en-AU. 2019-05-06.
24. Web site: Grand Opening of ASML's TSS Center operated by DB Schenker. DB Schenker. en. 2019-05-06.
25. Web site: DB befördert 2016 über 40.000 Container zwischen China und Deutschland. DB Schenker. de-DE. 2019-05-06.
26. Web site: CEO gets jail for slapping cabby. 2016-09-15. The Straits Times. en. 2019-05-06.
27. Web site: DB Schenker Convicted of Bribery. 2016-11-06. CargoForwarder Global. en-US. 2019-05-06.
28. Web site: Frachten weiter unter Druck: DB Schenker lockt mit Billigpreisen. Rathmann. Matthias. 2020-04-08. Eurotransport. de. 2020-04-16.
29. Web site: Rathmann. Matthias. 2020-05-17. Nach der Kritik an Billigfrachten: DB Schenker macht keine Fixpreise mehr. 2020-10-23. Eurotransport. de.