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DB Schenker and USA Truck join forces to become the premier transportation solutions provider

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DB Schenker and USA Truck join forces to become the premier transportation solutions provider. Image: DB Schenker
DB Schenker and USA Truck join forces to become the premier transportation solutions provider. Image: DB Schenker
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DB Schenker, one of the world’s leading logistics service providers, and USA Truck, a leading capacity solutions provider, announced an agreement under which DB Schenker will acquire all outstanding shares of USA Truck common stock for $31.72 per share in cash. The transaction values USA Truck at approximately $435 million, including assumed cash and debt.

The combination advances DB Schenker and USA Truck’s shared vision to become the premier North American transportation solutions provider. Upon completion of the transaction, DB Schenker aims to strengthen and expand USA Truck’s presence in North America, while utilizing its complementary international logistics expertise, air transport services and ocean gateways to benefit USA Truck’s existing customer base. Building upon USA Truck’s existing U.S. and Mexico freight network, DB Schenker also intends to expand its global logistics services across land, air, and ocean transportation services, as well as comprehensive solutions for logistics and global supply chain management.

Founded in 1983, USA Truck provides comprehensive capacity solutions to a diverse North American customer base, including more than 20% of the FORTUNE 100. USA Truck’s approximately 1,900-unit fleet of trucks, 2,100 employees, partnerships with more than 36,000 active contract carriers, strategic network of terminals across the Eastern half of the United States and a nationwide third-party logistics presence provides capacity solutions to meet the evolving demands of both regional and national customers.

“USA Truck is the perfect match for DB Schenker’s strategic ambition to expand our network in North America and foster our position as a leading global logistics provider,” said Jochen Thewes, CEO of DB Schenker. “In our 150th anniversary year, we are pleased to welcome one of the leading trucking and logistics providers to DB Schenker. Together we will enhance our shared value proposition and invest in exciting growth opportunities and sustainable logistics solutions for new and existing clients.”

“We are thrilled to have found a partner that appreciates USA Truck’s rich history, is closely aligned with our mission and values, and brings additional resources that we believe enable us to build on our nearly 40-year legacy of industry leadership,” said James Reed, President and Chief Executive Officer of USA Truck. “This transaction provides immediate and significant value for USA Truck stockholders, offers broadened career opportunities for our employees and increased capacity and service offerings with which to support our customers, and better positions our company to realize our long-term vision to become the premier North American transportation solutions provider.”

“This transaction recognizes the culture of excellence James, his team and all of our dedicated employees have created and commit to every day at USA Truck. It rewards our stockholders for their unwavering support during our turnaround and through the pandemic and offers further opportunity for our customers to draw upon USA Truck’s strengths utilizing the resources and reach of one of the world’s leading logistics services organizations,” commented Alexander Greene, Chairman of the Board of USA Truck.

Joe Jaska, DB Schenker’s Executive Vice President Land Transport, Americas Region commented, “USA Truck’s success has been driven by their impressive employees – all of whom are critical to future growth – and we look forward to welcoming them as an integral part of our team. As part of a larger organization with DB Schenker, USA Truck employees will have access to career opportunities at both the local and global level. We view this transaction as a platform for growth and by combining these organizations, we will greatly enhance our presence in the North American land transport space.”

With more than 76,000 employees at more than 1,850 locations in over 130 countries, DB Schenker, a 100 percent subsidiary of Deutsche Bahn, is one of the world’s leading logistics providers. The company operates land, air, and ocean transportation services, and it also offers comprehensive solutions for logistics and global supply chain management from a single source. In the Americas, DB Schenker is one of the largest integrated logistics service providers with more than 10,000 employees in 123 locations providing over 27 million sq. ft. of distribution operations to its clients. With integrated partners across the Americas, DB Schenker provides the best combination of intimate local practices knowledge and global capabilities.

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Food Logistics

MSC announced a new direct service, called NWC – WAF service

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MSC announced a new direct service, called NWC - WAF service. Image: Pixabay
MSC announced a new direct service, called NWC - WAF service. Image: Pixabay
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MSC announced a new direct service, called NWC – WAF service, connecting Dakar and North Europe, and providing the best transit times on the market.

The new NWC – WAF service, dedicated to the export of reefer commodities from Senegal, will connect the country’s fruit, vegetable and frozen fish suppliers directly to key commercial partners across Europe including France, Belgium and United Kingdom in one week. MSC will connect Senegal with key European gateways such as Antwerp in 7 days, London in 9 days and Le Havre in 11 days.

MSC operates one of the world’s largest and most advanced reefer container fleets. We provide exporters with expertise at every step of the cold supply chain including dedicated reefer experts guaranteeing regular and frequent monitoring of shipments, from the receipt of the loaded container to its final destination.

The fleet deployed for this service will be ready to meet the demand for reefers throughout the season to transport fruit, vegetable and other fresh and frozen products from Senegal to consumers across Northern Europe with an average of 600 plugs available onboard each vessel.

Starting immediately, the service will rotate as follows: Antwerp– London Gateway – Le Havre – Tema – Lomé – Tincan/Lagos – Abidjan – Dakar – Antwerp

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Logistics & Supply Chain

Maersk launches new rail service in India, Pratigya Express

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Maersk launches new rail service in India, Pratigya Express. Image: Maersk
Maersk launches new rail service in India, Pratigya Express. Image: Maersk
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A.P. Moller – Maersk, the integrated logistics company, continues to design and implement logistics solutions that address the ever-evolving needs of its customers. Building further on its strong commitment towards developing a robust rail network in India, Maersk flagged off yet another weekly, dedicated rail service, the ‘Pratigya Express’, from Sonipat Inland Container Depot in NCR to APM Terminals Pipavav Port on the western coast of India in Gujarat.

“The NCR is abundant with retail and rice exporters who need a regular connection from their manufacturing facilities to the consumers in the western market. Through our dialogues with our customers, we realised that they faced two challenges – either they don’t have a fixed schedule for departure from Sonipat ICD, and once they get it, they do not necessarily make it to the right vessel connection at the port.” said Major Jyoti Joshi Mitter, Head of Rail, Maersk India.

She added, “Our ambition was to address both these problems with a single solution – we launched a dedicated weekly rail service that gives the exporters a fixed visibility on departure from the origin and then connects to a fixed vessel connection at the APM Terminals Pipavav Port.”

The ‘Pratigya Express’ will move cargo from Sonipat ICD to APM Terminals Pipavav Port with a transit time of two and half days. From there, the cargo will have the option to connect on services such as the Shaheen Express, which will be launched in the coming days or the MECL.

Both of these services will then be able to take the cargo to the Middle Eastern or European markets. Studies show that cargo moved on rail instead of road has advantages in terms of both cost-savings and time-savings. These two benefits eventually also contribute to reducing carbon footprint.

Maersk’s new ‘Pratigya Express’ service on the Western Dedicated Freight Corridor will move 90 TEUs very week. APM Terminals Pipavav Port also plays an important role by being the first port to be connected to the DFC and has excellent connectivity to the hinterland through its rail head and road infrastructure.

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Logistics & Supply Chain

DHL Supply Chain signs an expanded contract with Vodafone

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DHL Supply Chain signs an expanded contract with Vodafone. Image: DHL
DHL Supply Chain signs an expanded contract with Vodafone. Image: DHL
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DHL Supply Chain, Deutsche Post DHL Group’s contract logistics specialist, has signed an expanded contract with Vodafone. For many years, DHL has been supplying network components and equipment for the expansion of Vodafone’s cable network. Such equipment includes cable reels, fiber optic cables and the telecom cabinets that can often be seen along streets. In addition to handling logistics for this equipment, DHL has set up a new and innovative webshop solution for Vodafone and its service partners to process orders for approximately two thousand Vodafone products.

DHL Trading Solutions, a business unit of DHL Supply Chain Germany & Alps, is working on the project as a 4PL provider. It coordinates and manages all processes in the end-to-end supply chain, including planning, implementation and oversight. Vodafone and its customers and business partners benefit from having DHL as their sole point of contact. Among other things, DHL has taken over the management of materials and suppliers from Vodafone. New orders are triggered whenever reorder points or warning levels are reached or Vodafone’s forecasts indicate that new inventory needs to be procured. This ensures that Vodafone’s technicians and external service partners receive the materials they need when and where they need them.

Based on Vodafone’s specifications and requirements, DHL has developed a customized, integrated webshop solution for order processing. Customers and business partners will also benefit from having a customer service unit operated by DHL to assist with any questions about webshop orders when needed; this unit is to be expanded and improved in cooperation with Vodafone in the months ahead.

“We’re very pleased to have set up this intuitive, innovative and customized webshop platform for Vodafone after a very short preparation and implementation period,” says Rainer Haag, Chief Executive Officer of DHL Supply Chain Germany & Alps. “It enables Vodafone’s technicians and external service partners to order at short notice the network components and equipment needed to expand its cable network.”

Ullrich Heid, Head of Network Logistics at Vodafone GmbH, is also pleased with the expanded contract. “With DHL Supply Chain, we have an experienced, expert partner of long standing who, in a short time, has shown us it can completely take over these extremely important and time-critical logistics processes and everything associated with them,” he says.

In this partnership, with assistance from an external partner DHL is also providing Vodafone with inventory financing for all products stored in the warehouse. To this end, DHL has taken over all of Vodafone’s inventory. That means DHL will now sell the required equipment to the construction companies so that Vodafone is ultimately invoiced only for the materials actually needed and sold. “Thanks to our expanded cooperation with DHL through the webshop platform and the associated services, we’ve been able to remove the inventory from our own business and have it efficiently pre-financed until customers order from the DHL webshop,” adds Heid.

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