DB Schenker targets Damco customers: Shippers need not add uncertainty

DB Schenker put aside the good in the business and publicly targeted Damco's customers, after Maersk's decision to include the brands.

Damco-logistics

DB Schenker put aside the good in the business and publicly targeted Damco's customers, after Maersk's decision to include the brands.

On Friday, the German forwarding company launched a "stability package" against the uncertainty in sea freight for Damco customers.

This package includes an offer to accept short-term deals up to two months, under the same terms that the customer already has with Damco.

Thorsten Meincke, board member for air and sea transport at DB Schenker, said: “Stable conditions promise stable supply chains: that is what DB Schenker stands for".

“The last thing shippers need now is stability. We are making an offer to all those who are currently looking for lasting safety and reliability".

And Schenker has committed to providing short-term priority quotes to Damco customers.

Losing customers to competitors is one of the biggest risks of major structural changes, but companies rarely advertise a willingness to poach their customers. A forwarder said the move could come back to bite DB Schenker.

“I would do it, if I had the muscles to flex like the DB Schenker had. But what's interesting is that it's selling negative signals against a competitor like Damco - because, with Maersk's full integration, Damco is now transforming into giant The Hulk.

“If Maersk reacts and targets Schenker's customers, then it could be a heavy struggle in the world. If this leads to it, it will be very interesting to be an audience ”.

Meanwhile, more detail has emerged about Maersk's new strategy: it has created a role of "global leader in retail (LCL) and aviation", which is not incorporated in the conventional way. .

But one freight forwarding company says these roles have many things in common: “Air freight is likely to be shipped weekly and air is likely to be daily. Whole container goods (FCL) are shipped within a few weeks. So, air and air freight are for urgent, turnaround or critical inventory products. So these two service groups are linked together“.

However, most companies do not structure it that way and deploy air and sea freight separately.

“Maersk Logistics is also keeping its aviation and retail functions separate from the FCL business, which Maersk wants through on the carrier's side. Payments, functionality and tracking will go through the carrier and everything else goes to Maersk Logistics, I guess.

But some in the market have expressed concern that Maersk integration will no longer be a 'neutral' company, but rather a 'risky strategy', a source said.

Maersk is setting up a "wall of China" between Maersk Line and Maersk Logistics employees, who are unable to discuss specific customer accounts, he said.

"They are very aware of the limitations of competition law," he added. “Basically, Maersk is saying that the customer gets two contacts and an expert area, but through a technology system.

“But the world isn't ready for that - that's not how commodity management and delivery works, because every customer has individuals with different views, requirements and approaches - even though although it is all alike in the end - but there is no difference.

"Who needs a supply chain manager / transportation / logistics / operator to run their own freight?"

Phaata (Adapted from The Loadstar)