DHL Express will increase prices around the world by about 4-5% next January depending on the region and local market conditions.
The express operator today announced rate adjustments for its Time Definite International products effective January 1, 2016, for a series of major markets in Europe and Asia Pacific, with the Middle East and some Latin American markets expected to follow shortly.
However, price adjustments for the USA and China will be announced at a later date. “We aren’t able to share numbers for these markets or a global average yet,” a DHL Express spokesman told CEP-Research.
In Europe, the average price increase will be 3.9%. The 3.9% increase will apply in Germany, the UK, France, Spain, Belgium, the Netherlands, Denmark, Poland and the Czech Republic. There will be a 2.9% rise in Sweden and Norway, and a 2.5% rise in Switzerland.
In Asia Pacific, the increase amounts to 5% on average. There will be increases of 4.9% in Hong Kong, Singapore, Malaysia, Thailand, Philippines, Japan, South Korea, Australia and New Zealand.
Explaining the criteria behind the annual price increases, Ken Allen, CEO DHL Express, said: “The whole essence of DHL Express is about providing outstanding service quality for our customers throughout the world. Our annual price increase enables us to continue investing in our international time definite network and to maintain our leading service quality.
“Our major investment announcements in 2015 have included new hubs in Brussels, Belgium, and Singapore, and an expanded Americas hub in Cincinnati, U.S. We are also continuing to invest in the Middle East and Africa, where we have unrivalled networks, and to add freighter aircraft, particularly to strengthen our intercontinental connections. Last but not least, our Certified International Specialist program is equipping our employees with the skills and knowledge to deliver exceptional service. All of this has one overarching aim: to help our customers grow and succeed in international trade.”
In India, DHL Express will put up its prices by 6.9% on average, partly to compensate for the weaker rupee. “DHL’s annual rate increase is driven by the continuous investments made globally and in the country. These investments are to support growth and improve quality, despite the continuous impact of inflation and the depreciating rupee. We are committed to continuously improve our service quality to our customers,” said RS Subramanian, SVP & MD, India, DHL Express.
DHL Express noted that it adjusts its prices annually, taking into account inflation and other rising costs, such as additional expenses related to compliance with enhanced security regulations, in each of the more than 220 countries and territories that it serves. Price adjustments will vary from country to country, depending on local conditions, and will apply to all customers where contracts allow.
