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   Vol. 14  No. 22
Tuesday March 10, 2015

Schenker Shooting Itself Through Foot

Schenker Shooting Itself Through Foot

     DB Schenker recently put out a presser proclaiming the end of its cargo cartel lawsuit claim against Nippon Cargo, SAS, and Cargolux.
     But Schenker promised it would continue to pursue its claims against other air carriers “vigorously.”
     So Nippon Cargo, SAS, and Cargolux found it cheaper to settle out of court (U.S. Eastern District) while admitting no guilt.
     So far, to our knowledge, Schenker has not advised major shippers about possible refunds based on settlements with these carriers.
     What’s more, they apparently have not sought input and legal assistance from shipper’s interest groups, which would have been a logical move.
     Schenker has indicated that it is still after AF/KL/MP and Lufthansa.
     “Lots of luck in both cases,” is what an industry insider told FT.
     “AF/KL/MP apparently has the case in court already in the Netherlands, which works to Schenker’s disadvantage since Dutch law will not award the plaintiff triple punitive damages.
     “Lufthansa, which has been rather unscathed, having fully cooperated with U.S. and European authorities, has been sued only in Germany.”
     The source noted that Lufthansa fully acknowledges liability for damages done, but so far “there seems to have been no damages at all,” which in plain speak means that DB Schenker has proven nothing.
     In any case, DB Schenker passed on any charges—excessive or otherwise—levied by airlines to the shippers.
     Last but not least, no matter the final outcome for any of the airlines, this ongoing legal dust-up could impact the bottom-line of all carriers involved and result in either raised prices (where possible) or dropped routes where the risk of litigation is all too high.
     If memory serves, it was DB Schenker complaining at various times about a lack of alternatives in trans-Atlantic main deck capacity.
     So far, Schenker, in its legal zeal, may be shooting itself through the foot while aiding and abetting the Darwinian theory of survival of the “financially” fittest—which does not necessarily mean the survival of the best service provider.
     Your move.
Jens


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