DHL Freight is to raise its less-than-truckload (LTL) or ‘groupage’ prices by up to 5 per cent fromthe start of 2015 to compensate for the rising external costs of its network operations, the
company revealed today.It said the main cost drivers in the domestic and international groupage market included “severe wage increases caused by driver shortages, higher administration, insurance andenvironmental fees (e.g. Marpol), the reduction of average shipment sizes and increased deliveryfrequencies”.
Driver shortages have become a significant issue in European markets such as Germany and theUK. And DHL said that since 2013, the company had invested “more than any other LTL groupageprovider into automation, network quality and customer service”.
A spokeswoman told CEP-Research that the adjustments would apply in all countries where DHLFreight has operations – mainly in Europe but also markets such as the US. She said: “The rangewill be 1-5 per cent and depends on a mix of factors. The three main ones are: the level ofincrease in external costs, the level of investments done, and the market situation in therespective country.”
She said the range would also vary within each country. “For example, in Germany the rangeof increase is 1-5 per cent, depending on lane and customer size,” she explained.
Amadou Diallo, CEO of DHL Freight, commented: “With the significant external cost challengesthis industry is faced with, the market players can only continue to provide shippers with therequired quality and technology investments if some of the costs are passed on.”
DHL Freight is one of Europe’s largest road freight providers, operating LTL, FTL (fulltruckload) and intermodal services in more than 50 countries and territories.
