DHL announces rate hikes

DHL, following in the footsteps of rivals UPS, FedEx and the U.S. Postal Service, announced it rate increases for 2006. Effective Jan. 2, rates for DHL@Home, the company’s expedited business-to-residence shipping service, will increase by an average of 6.5 percent. Rates for DHL Global Mail International will rise by an average 9 percent. A 7 percent increase for DHL Global Mail domestic will take effect on Jan 8. Jonathan Baker, a DHL spokesman, said the new rates are timed to coincide with new U.S. postal rates scheduled to be implemented in mid-January. Rates for DHL Domestic and International Air Express will increase 5.5 percent, and DHL Ground Service will go up 3.9 percent, effective 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,” Baker said. DHL will put a cap of 14.5 percent on its published fuel surcharge for Domestic Air Express and International Express for 2006. This will reduce the index used to determine its air fuel surcharge by 2 percent, resulting in an overall rate increase of 3.5 percent for Domestic Air and International Express customers. The fuel surcharge index calculation for DHL Ground Service will not change.