DHL Express Announces 4.9% Rate Hike in 2016
Package carrier DHL Express on Nov. 19 announced a 4.9% average rate increase for U.S. customers next year, matching the direction of package pricing adjustments by UPS Inc. and FedEx Corp.
The increase by DHL, the international package business owned by Germany’s Deutsche Post AG, will be effective Jan. 2. Deutsche Post DHL Group ranks No. 9 on the Transport Topics list of the 50 largest global freight carriers.
UPS, which ranks No. 1 on Transport Topics' Top 100 list of the largest U.S. and Canadian for-hire carriers, said domestic ground package rates would rise 4.9% and international packages will increase 5.2%, both effective Dec. 28.
No. 2 FedEx, which first announced a 2016 increase, is raising package prices 4.9% on Jan. 4 for domestic and international packages.
DHL’s increases reflect “inflation and other rising costs, such as additional expenses related to compliance with enhanced security regulations,” said the rate increase announcement from the company, which serves 220 countries.
DHL Express accounts for about 25% of Deutsche Post’s revenue and also is its most profitable unit. About 20% of its revenue comes from the Americas. U.S. package revenue isn’t disclosed.
