DPD hikes prices for German business customers by 3.5% for 2014

International parcel and express service provider DPD today announced a 3.5% average priceincrease for business customers in Germany from the start of next year to cope with rising costs

The 3.5% rise is in response to cost increases in the area of wages and incidental wage costs aswell as in freight costs, DPD explained. However, consumer shipping prices will remainunchanged.

Over the past 10 years stagnating prices in parcel shipping have been accompanied bycontinuously rising costs. DPD said it expects the cost situation to become even more critical ifthe extension of road tolls for heavy goods vehicles which is currently under discussion comes intoeffect in Germany. “If there is an increase in road tolls, these additional costs will have to bepassed on to our customers, too,” said Germany CEO Arnold Schroven.

In addition, DPD demanded “a radical change” in pricing policies throughout the parcelsbusiness.

“The entire industry has a shared interest in counteracting the “something for nothing”mentality in parcel shipping”, Schroven remarked. “Parcel shippers and their consignees justifiablyhave high expectations of parcel shipping services. At the same time, however, there is often toolittle appreciation of the services we provide.”

At present DPD is comprehensively expanding its range of services in the field of commercialparcel shipping to private consignees. Last year the company announced that the number of DPDParcelShops is to be increased to 8,000 by the year 2014. In addition, by the end of October allDPD ParcelShops will be equipped with the latest scanning technology.

The parcel service is also driving forward the development of its services to private consigneesand is offering ever more flexibility in parcel shipping, for example by notifying consignees of atime window for the delivery of their parcel. In the year 2014 this time window is in general to bereduced from its current three hours to just one hour.