DB Schenker Logistics and GLS today unveiled a long-term strategic partnership enabling each partner to offer their customers both parcel and freight services across Europe in competition to rivals such as DHL, DPD, UPS and TNT as well as other freight forwarders.
From January 2016, DB Schenker will expand its freight-based product portfolio by offering parcel services using GLS’ Europe-wide network. For its part, the Royal Mail Group parcels subsidiary will offer customers palletised freight transportation, using the Schenker network.
Under the cooperation agreement, DB Schenker Logistics will manage parts of the transport chain itself and in general will collect parcels together with freight from customers. GLS will provide further transport and delivery to businesses and their end customers.
The non-exclusive partnership, signed in early September, will kick off in Germany and be gradually extended across Europe. The cooperation complements DB Schenker’s existing own parcel service in Sweden, Norway, Finland and Poland.
Ewald Kaiser, Board Member of Schenker AG for Land Transport, said: “Driven by e-commerce, the European parcel market offers excellent growth opportunities. We have found a strong partner with GLS.”
The expansion of the product range meets the constantly growing customer demand for an ‘all-in-one solution’, he explained. This means that with DB Schenker Logistics, customers now have a single logistics partner that can provide everything from parcel services to part- and full-load solutions. DB Schenker Logistics plans to offer parcel services for corporate customers in Europe under its own brand and thus complete its land transport product portfolio.
“Freight customers are increasingly requesting parcel services,” explained Rico Back, CEO of the GLS Group. “GLS already works together with many freight companies and networks, including DB Schenker Logistics on a national level. By signing the cooperation agreement, we have extended our cooperation to include the European economic area.”
GLS, which covers 37 countries in Europe with its parcel services, has its own freight networks in Belgium and the Netherlands. “But we also have customers in other countries who would like to send freight or pallets through us. Therefore, the non-exclusive cooperation under which DB Schenker Logistics will handle part-load consignments is an ideal solution for our customers,” Back commented.
DB Schenker, the Deutsche Bahn freight transportation and logistics division, is by far the bigger of the two partners. The division, with its separate rail freight and logistics units, generated revenues of €19.8 billion in 2014. DB Schenker Logistics, with revenues of nearly €15 billion, is Europe’s largest land transport provider, number three in air freight and ocean freight, and a leading contract logistics provider.
GLS, with a network of 39 hubs and 688 depots in Europe, delivered some 436 million parcels for more than 220,000 customers in the year ending March 2015, generating revenues of €2.1 billion.
