Damco, the combined logistics arm of A.P. Moller-Maersk, is absorbing the operations of Maersk Distribution Services, the inland distribution and warehousing arm of Maersk Line in North America.

The move, which was announced Monday, is part of the continuing consolidation of all the logistics activities of A.P. Moller-Maersk under the Damco umbrella, which started trading as the Danish company’s combined global logistics brand in September 2009.

With MDSI now part of the organization, Damco employs around 1,000 people and generates more than $500 million in revenue in North America. Damco had worldwide revenue of more than $2 billion last year.

Damco said the integration of MDSI with Damco will enable customers sourcing from overseas to benefit from systematic integration between their international supply chains and domestic distribution.

“It enables postponed decision making for final allocation of cargo to each store,” the announcement said. “Damco now provides customers with integrated logistics solutions from sourcing through their supply chain, all the way to the store.”

MDSI, which has $200 million in annual revenue in the U.S. and Canada, has more than 600 employees. It is a warehousing and distribution company which delivers cross-docking, transload, warehousing and inland transportation services to customers from its 18 facilities in the major ocean and rail gateways in North America. It 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 its facilities and says it is now well positioned for growth.

Source: JOC