German forwarding giant DB Schenker has announced the closure of its BAX Global cargo centre in Toledo, Ohio, and will commence dismantling its North American air fleet in the next few weeks because of shrinking demand, according to the Shipping Gazette.
"As a result of the prolonged recession and spiking fuel prices, more customers are opting for expedited ground-based solutions instead of domestic air freight," said Schenker CEO Heiner Murmann.
Though Schenker will disband its own US air fleet, the company said it will continue to run air freight business in North America with a new focus on smaller customers who need transportation management services, reported The Associated Press.
Paul Toth, CEO of Toledo-Lucas County Port Authority that operates Toledo Express Airport, said: "The closing of the Ohio cargo hub was very disappointing [because Schenker] has operated from there for about 20 years."
Schenker's retreat from Ohio's air freight business has had a negative impact on the airport as "BAX Global was by far the largest and flew to cities in the US and overseas.