07-19-2011 Rumors and Heresay

day 420

so it's officially unofficial: Bax Global could be, might be, will be, and won't be closing in the near future.

let's start from the beginning...

last week of june, a german paper released an unofficial statement that DB (Deutsche Bahn), BAX's parent company, was comsidering removing itself from the US shipping market, and considering closing it's Schenker branches in the US.

a few days later, Heiner Murmann, CEO and President of Schenker, Inc. in Freeport, New York, was quick to deny the allegations. saying they were looking for other ways to adapt to the current market conditions and world economy.

officially, i know that there is a meeting that is supposed to occur in the next couple of months, with a decision possibly at the end of the year.

unofficially, i see things and hear things that really point to the inevitable. now, i'm generally an optimist about things, but i see a lot that hasn't been done. that points to the inevitable.

let's recap...

1) the initial buy: when DB purchased us about 3 or 4 years ago, we were told in so many words, was going to keep us the way that we were running, with minimal changes and interference. they kept that promise. also during this time, field station became Schenkers, while the hub remained as Bax Global. interesting, right?

2) The Port Authority grant: we were given a few million dollars to renovate the hub facility, possibly adding to the truck dock and the customs area. that never happened, because the company had to front an additional 1 to 2 million dollars to go ahead with the project. needless to say. that hasn't happened.

3) the lease is up: the lease for Bax Global's Hub is up for renewal, (supposedly sometime in the next year or so) and although this is a minor thing, why wouldn't this be the most opportune time to close shop?

4) The new Freight Suite: we were supposed to roll out this new customer Freight Suite which simplified our shipping options, i've seen a little of this, but not to the estent that we were supposed to see it, it was supposed to be across the board by now, but i see one or two pieces like this a night.

5) the Fleet: when DB bought us, they failed to take into consideration the Bax dedicated fleet. our planes are old, and with age, they guzzle fuel like no one's business. this is one of the main sticking points of DB's financial strategy. they don't like it.

6)The Rumor Mill: i cant confirm nor deny the existence of these rumors, but this is what i've heard:

in no specific order:

we will be bought by another company that bid on us the first time we were sold.
we will be bought by UPS/FEdEX
we will be bought by Amazon
there will be no vending machines in the facility by late july because the lease is up with the vendors.
the company is cutting the chicago trucks altogether.
the company will be bailed out by the president.
the company is F**ked

that's what i know. so far i've tried to remain positive, taking a strict "whatever happens...happens" approach, but everyday i see less and less good things that tell me that were staying open. life goes on, ops goes on, that's all we can do...

MK