This concern was founded in July 1872 in Wien by Gottfried Schenker and two business partners, with the backing of the Wiener Bankverein. The firm was a pioneer in the field of freight consolidation or ‘groupage’, the idea of bringing together small consignments to a larger transport unit. Over time this evolved into a new, low-cost, high-speed transport system which made use of the combined strengths of rail, road and water transport.
In 1873, Schenker organized the first groupage consignment service from Paris to Vienna, transporting among others champagne, cognac, Bordeaux wines, fashion and other luxury items for Vienna's society. Subsequently, the service was expanded to include ironware, machinery and textiles from England and Germany. The firm expanded rapidly, with a branch being organised in Budapest in 1874 and through the remainder of the century a further thirty-two branch offices were opened in fourteen countries across Europe. Its fixed rates for carriage of goods established it as a leader in its field and the concern acquired an international reputation.
Such was the volume of the firm’s business that it entered the field of ocean shipping, utilising the port of Trieste to reach markets in North America; in 1912 it organised the Schiffahrts-Gesellschaft Austro-Americana and in 1913 opened its own branch in New York, the first outside Europe.
Though its business was curtailed by the Great War the firm survived, and re-established its network across the Danube basin. With the reunification of the Austrian provinces into the Reich the firm quickly moved into the nationwide market for freight consolidation services, developing close connections with the Reichsbahn.