DHL Express announces annual price increase for 2013
DHL Express, one of the world’s leading international express services providers, has announced an annual general average price increase of 4.9% for 2013.
The price adjustments will affect most countries in the Middle East and North Africa, including the United Arab Emirates, Saudi Arabia and Kuwait. It will vary from country to country, depending on local conditions, and will apply to all customers where contracts allow, with the adjustments being effective from January 1, 2013.
Ken Allen, CEO, DHL Express said: “The price increase that DHL Express is putting in place globally for 2013 is aimed at offsetting rising costs, including external costs that are out of our direct control and cannot be compensated through productivity improvements or economies of scale.
“We are introducing our rate adjustment for 2013 with a clear focus on maintaining our value proposition. Our annual price increase is an important factor in maintaining the significant investments we make in our global network, which offers world class delivery performance for the benefit of our customers.”
DHL’s annual rate increase is based on a number of factors, the firm added through a statement. One of its principal considerations is the impact of general price inflation on input costs for the express industry. It also takes into account costs that are specific to the express industry, which are not directly linked to inflation, including the impact of regulatory measures, such as additional security requirements. The industry has absorbed costs in order to comply with these externally imposed requirements whilst ensuring that delivery times and service quality continued to improve. In fact, a recent ATKearney study states: “Volumes for the industry have increased consistently in recent years, while revenue per shipment has not yet returned to 2008 levels.”