DHL announces US rate changes for 2005
DHL Express (USA), Inc., today announced new express and ground delivery rates and fee adjustments effective January 16, 2005.
In keeping with price adjustments applied throughout the express and parcel shipping industry, rates for DHL Domestic Air Express and International Express will increase an average of 3.4percent. DHL Ground Service rates will increase an average of 2.9percent. Rates for DHL@Home, the company's expedited business-to-residence shipping service, will increase an average of 3.7percent.
Concurrent to the 2005 rate changes, DHL will reduce its indexed fuel surcharge for Domestic Air Express and International Express by 0.5percent, resulting in a net effective price adjustment of 2.9percent for 2005 Express services. This adjustment will become effective January 30. Air express fuel surcharges are indexed by the industry to the U.S. Department of Energy average price for a gallon of kerosene-type jet fuel.
An indexed fuel surcharge for DHL Ground and DHL@Home shipments will be introduced on January 2, 2005. This fuel surcharge, initially set at 2percent, will be indexed to the National U.S. Average On Highway Diesel Fuel Price as reported by the U.S. Department of Energy.
With these adjustments, DHL express and ground delivery service rates will remain the most competitive available in the industry.
Other changes include a USD0.25 increase in the surcharge for Residential Delivery and Delivery Area Service. There will be no changes to applied Shipment Value Protection rates, but Shipment Value Protection for Domestic Ground will now receive a minimum charge of USD1.20. Packages without Shipment Value Protection will continue to be automatically provided coverage of up to USD100 against potential loss or damage without charge.
Additional details and effective dates of 2005 fee and rate changes will be available at www.dhl-usa.com as of January 3, 2005.
"With the Airborne integration virtually complete, an expanded U.S. domestic network, and broader international reach, DHL continues to offer the best value in the express and ground parcel delivery industry," said Richard Corrado, executive vice president for pricing and business development, DHL Americas. "As we continue to expand our service offerings, DHL is providing the choice and greater competition that American business and consumers deserve."
Earlier this year, DHL announced a USD1.2 Billion investment in its U.S. domestic network, and has already completed the build out of seven new Regional Sort Centers throughout the country, increasing DHL's ground delivery product capacity by 60percent, enhancing network connectivity and improving service levels. Each of the new Sort Centers now offers greater connectivity within DHL's pickup and delivery network, and supports the company's comprehensive ground and air services. The company has also expanded the footprint for 1-day ground delivery services throughout the United States.
Beyond 2005, DHL plans to add five more regional sort facilities and to synchronize all 24 facilities with networks in Canada and Mexico to provide one fully integrated North American network.
DHL has also recently announced an investment program in an enhanced U.S. drop box network, expected to bring the total number of DHL drop box locations in the U.S. to more than 32,000 by year-end 2005, providing U.S. consumers and businesses nationwide with greater flexibility and choice for their shipping needs, and making it easier and more convenient than ever for U.S. consumers and businesses to 'DHL' their packages across the country and to more than 220 countries and territories worldwide.
The company expects to announce additional new services in early 2005 as it continues to expand its U.S. domestic market presence and product offering.
