Maersk Distribution Services Inc. now part of Damco?

Ranked number 17 in a recent global overview by the consultancy of Armstrong & Associates, Damco appears to be poised for growth.
By Patrick Burnson, Executive Editor
September 20, 2010 - LM Editorial

Damco, the logistics arm of A.P. Moller-Maersk and one of the world’s “top 20” providers of freight forwarding and supply chain management solutions, has announced that Maersk Distribution Services Inc. (MDSI) will be integrated into Damco.

Ranked number 17 in a recent global overview by the consultancy of Armstrong & Associates, Damco appears to be poised for growth.

“This seems like a good time to consolidate global operations,” said Tom Mathers, a spokesman for the National Customs Brokers and Freight Forwarders Association (NCBFAA). “That is particularly true if it enhances economy of scale.”

MDSI generates around $200 million in revenue per year in the U.S.. and Canada and employs more than 600 people. It is a warehousing and distribution company which delivers cross-docking, transload, warehousing and inland transportation services to shippers from its 18 facilities in the major ocean and rail gateways in North America.

According to spokesmen, this establishes a “critical link” between the international and domestic supply chains of many customers.??

“MDSI has during the last years re-organized, optimized and upgraded their facilities and are now well positioned for growth,” said Rolf Habben-Jansen, CEO of Damco in a statement.

He added that by integrating MDSI with Damco, shippers sourcing from overseas will benefit from systematic integration between the international supply chain to the domestic distribution, and it enables postponed decision making for final allocation of cargo to each store.

Delivering what it calls “cost and carbon efficient transportation and distribution services,” Damco is positioned to build a transparent supply chain to end-users and point-of-sale.

“The MDSI team is a natural extension to Damco. MDSI substantially enhances our offerings to the market and enables us to extend the scope of the services we offer to our valued customers” said Habben-Jansen



About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Disruptions at West Coast ports, which were resolved at the end of February, may have distorted the numbers

Growth firmly remains in the cards for both the manufacturing and non-manufacturing sectors in 2015. That was the main takeaway from the December 2014 Semiannual Economic Forecast from the Institute for Supply Management (ISM), which, in many ways, picked up where its companion Spring 2014 report published last April left off.

First quarter revenue of $1.776 billion was down 4.8 percent annually but up 4.6 percent in constant currency. And adjusted EBITDA at $51 million saw an 18.6 percent annual gain, with a 23.3 percent increase in constant currency.

Heading into 2015, the intermodal sector was faced with the same challenges it had exiting 2014, namely the West Coast port labor disruption and harsh winter weather. But even with these obstacles volumes still managed to show overall growth on an annual basis, according to the most recent edition of the Intermodal Market Trends & Statistics Report from the Intermodal Association of North America (IANA).

Forget cost cutting. Innovation and sustainability are the most important factors in business today. The companies that get it right can still win in a flat economy, says ISM CEO Tom Derry.

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. Contact Patrick Burnson

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA