DHL makes a U-turn on parcel price increase

DHL makes a U-turn on parcel price increase

 DHL will reverse its price increase for parcels, small packages (Päckchen) and additional services for private customers introduced on January 1, 2020; the rate reversal will be effective starting May 1, 2020.

The company’s objective is to avoid a drawn-out legal dispute with Germany’s Federal Network Agency (Bundesnetzagentur) and any confusion on the part of customers with regard to parcel rates.

The Federal Network Agency, however, responded by calling the new prices excessive and, on January 28, 2020, initiated an official review of the new prices. As stated in its preliminary resolution, the Federal Network Agency believes that the price increase effective January 1, 2020 would lead to significantly higher revenues than estimated by DHL. Though DHL does not agree with this assessment, it has decided to retract the price increase to avoid a drawn-out legal dispute and any uncertainty with regard to the outcome.

The reversal will take effect on May 1, 2020 due to time required for IT system updates and changes to customer data at more than 24,000 parcel acceptance points. Until then, current prices remain valid. Beginning May 1, 2020, retail outlet and online prices for private customers will revert to prices effective through December 31, 2019.

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