German parcel operators including GLS and DPD are increasing their prices in April but DHL issteering clear of any price hikes at present, according to a survey by German newspaper Die
Welt.The last official price increases were one year ago. According to industry sources, largecustomers can currently ship their parcels for less than €2 which reportedly does not even coverthe costs of the parcel transportation, the newspaper wrote.
GLS is the first parcel operator to announce a price rise of 2.8% on average as of April 1 inresponse to the dramatic price fall in 2009. “The price decline in our industry must have an end.We would rather put up with our business shrinking than join a further price decline,” GLS CEO RicoBack told Die Welt. Although GLS maintained its parcel volumes in Germany last year, its turnoverdeclined.
DPD, the largest B2B parcel operator in Germany, is planning price increases of up to 5%. “Wehave decided to drive prices up between 1% and 5%. The level depends on individual customers andcontracts,” DPD CEO Arnold Schroven said. Last year, some large customers successfully insisted onprice reductions. This should now “be compensated by a minimum,” Schroven stressed. “Our industryneeds to counteract now.”
B2C specialist Hermes, on the other hand, is still considering whether to increase generalparcel prices but is seeking higher rates from business customers. Hermes was the only operator toincrease shipping prices for private customers by around 10 cents per parcel a year ago. “Sincethen, we haven’t lost parcel volumes. But the expensive diesel price has heavily impacted ourbusiness. Therefore, we don’t exclude prices hikes in the coming months,” Hermes chief Harmut Ilektold Die Welt.
In contrast, the largest German parcel operator DHL does not plan to change prices. “DHL Parceland DHL Express do not plan any price increases for the moment, neither for private nor forbusiness customers,” a company spokeswoman commented.
The international express and parcel operators association (BIEK) expects market growth of 2%-3%this year and total turnover of around €14.8 billion. “Our member companies have been recentlytalking again about increased shipping volumes. This is partly due to improved business activity.But it is also due to the increasing division of labour among German companies,” BIEK presidentGunnar Uldall explained.
