DB Schenker shuts down its U.S. BAX Global air fleet

With competition rising and demand falling, global shipping leader DB Schenker will cut ties with its United States air fleet by shutting down its cargo hub in Toledo, Ohio.

“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,” Schenker CEO Heiner Murmann said.

Schenker will continue to operate in North America, but will no longer fly its own planes after shutting down its BAX Global air fleet. The company will focus on smaller customers who need specialized transportation management services.

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DB Schenker had operated from Toledo Express Airport for about 20 years, and the loss of the cargo hub will cost the area about 700 jobs, most of which are part-time. Paul Toth, CEO of the Toledo-Lucas County Port Authority, the airport’s operator, expressed disappointment in the decision.

Several cargo companies operate of the Toledo Express Airport, but BAX Global was far and away the largest company, flying to cities in the United States and overseas. The BAX Global air fleet accounts for less than 10 percent of DB Schenker’s business in the Americas, and will be phased out in the coming weeks.

As the freight logistics subsidiary of Deutsche Bahn, DB Schenker is one of the largest worldwide logistics providers. The German-based company retains a strong presence in the European market.