GeoLogistics Drops U.S.

Eagle USA Airfreight is expected to benefit most; ForwardAir also is likely to reap some rewards

Some $70 million in domestic freight business is up for grabs now that GeoLogistics is making a quick exit from the U.S. market. By Oct. 15, all purely domestic, deferred freight accounts will be handed off to a GeoLogistics competitor.

The North American operation, namely the intra-U.S. market, has been the bane of GeoLogistics' existence since the company bought LEP Profit three years ago. Shedding the unprofitable domestic side of the house, which includes shutting down a number of offices and firing an undisclosed number of employees, is intended to free the forwarder to concentrate on international freight forwarding, its strength.

Why GeoLogistics did such a poor job of managing the domestic business is puzzling …