DPD Germany to raise parcel prices 4.6% in 2012

International package and express delivery firm DPD has announced it is to raise prices in Germany by 4.8% in the New Year. The company said the rate rise was a response to rising wage costs and benefits along with “significant” price increases from its suppliers and freight forwarders.

DPD said the entire industry was facing similar price pressures.

Earlier this year, industry trade association BdKEP spoke out against another parcel company, Hermes Germany, for launching a cut-price parcel service considering the difficult price environment in the German parcel market. Deutsche Post’s DHL Parcel unit recently cut its prices to gain market share in the run-up to Christmas, but expectations are of general price rises in the market next year.

DPD said growth in parcel volumes, for example from online shopping, was not being matched by growth in shipping capacity.

“The continuing boom and a considerable rise in parcel volumes mean that load space is in short supply and is becoming correspondingly expensive,” said DPD chief executive Arnold Schroven, who added that a shortage of skilled workers and qualified drivers was also leading to an increase in costs in the freight sector.

Majority-owned by La Poste’s GeoPost Group, DPD ships about 2m parcels a day via a network comprising 800 locations in more than 40 countries.

In Germany, the company has 75 depots and 7,000 vehicles, with a workforce totalling around 7,500 staff.

DPD said it was already investing millions each year to expand its network of depots with new and expanded facilities. It broke ground earlier this month on a EUR 42m facility near Cologne that is set to be the biggest depot in its network.

“For DPD the quality of our services continues to be the top priority,” said Schroven. “That’s the reason why this overall development within the industry will be reflected in our prices.”