E-commerce Boom

DB Schenker Wants Piece of Parcel Market

schenker general caro schulz
Schenker is one of the largest logistics companies in the world.
  • Why it matters

    Why it matters

    The e-commerce boom has triggered a corresponding rise in the amount of courier deliveries; it’s a competitive but lucrative sector.

  • Facts

    Facts

    • DB Schenker will get into the parcel-delivery business next year.
    • Revenue of express and parcel shipments grew from €14 billion to €16.6 billion ($15.9 billion – $18.8 billion) between 2010 and 2014.
    • In Germany, the Deutsche Post and its subsidiary DHL are the market leaders, followed by DPD, UPS and Hermes.
  • Audio

    Audio

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There will be little good news when the 20 members of Deutsche Bahn’s supervisory board sit down for their regular meeting on Wednesday. The businesses of the state-owned rail company are in poor shape, and its restructuring plans are still in their early stages.

But in the midst of Deutsche Bahn’s troubles, there is promising news coming from subsidiary Schenker Logistics. The company that handles freight traffic by air, sea and road will be getting into the parcel business in 2016 after letting the online boom more or less pass it by.

“Driven by e-commerce, the European parcel market offers excellent growth opportunities,” Schenker boss Ewald Kaiser told Handelsblatt.

Schenker believes it can reach a business volume in the hundreds of millions of euros, but doesn’t want to run the complicated business itself. That’s why the company is partnering with GLS, an Amsterdam-based parcel service and subsidiary of the United Kingdom’s Royal Mail. In return, Schenker will take over GLS’s general bulk cargo shipping business.

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