DHL Announces 2006 Rate Hikes

Following its rival carriers United Parcel Service, the U.S. Postal Service, and Federal Express, DHL earlier this week announced its new rates for 2006. On Jan. 2, rates for DHL@Home, the Plantation, FL-based company’s expedited business to residence shipping service, will increase an average of 6.5%, while rates for DHL Global Mail International will go up on average 9%. A 7% increase for DHL Global Mail domestic will go into effect Jan 8. DHL spokesperson Jonathan Baker says these rate hikes are timed to coincide with the new U.S. Postal rates scheduled to be implemented in mid-January.

Rates for DHL Domestic and International Air Express will increase 5.5%, and DHL Ground Service will go up 3.9%, although these rates will not take effect until Feb. 5. “The later February date for the DHL Express business unit rates was chosen to provide sufficient advanced notice to our customers, and ensure an ample timeframe to effect the rate changes from an IT standpoint,” says Baker.

DHL will put a cap of 14.5% on its published fuel surcharge for Domestic Air Express and International Express for 2006. This will in turn reduce the index used to determine its air fuel surcharge by 2%, resulting in an overall rate increase of only 3.5% for Domestic Air and International Express customers. The fuel surcharge index calculation for Ground service will not change.

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