Deutsche Post has founded a joint venture in Japan with Yamato, Japan’s largest private postal company. The new company, which will operate under the name Yamato Dialog & Media, will be involved only in direct marketing by post initially, as the Japanese state-owned postal operator still has a monopoly on the market for the delivery of letters.
Read MoreDHL, the express and logistics unit of Deutsche Post AG, announced that it had decided to reduce the prices for parcel delivery in Germany as of May 4, 2006, in order to achieve turnover and profit increases in long-term perspective, according to a media report from April 5, 2006. According to the report, under the new price scheme the price for the delivery of an ordinary parcel will be reduced to 3.9 euro (USD4.73) from currently 4.3 euro (USD5.2). The price for the delivery of the so called Plus parcels, including packaging and postal charges, weighing up to 20 kg, will be reduced to 5.99 euro (USD7.27) from currently 6.2 euro (USD7.53). A Deutsche Post spokesman said that the company is also examining the possibility to reduce the prices in other service sectors, but stressed that no final decision had been taken yet. The head of Deutsche Post, Klaus Zumwinkel, has already announced possible price reductions for the heavy parcels.
Read MoreDeutsche Post has yet to make a decision on the amount by which it will cut prices for domestic parcel delivery, a company spokesman told Handelsblatt.
Separately, industry sources told the newspaper Deutsche Post will reduce delivery prices for 3 kg packages to 3.90 eur from 4.30 eur. The sources did not state when the price reductions would take effect.
In the context of the debate surrounding the consequences of a partial opening of the letter market, and the necessity to gather basic data for further decision-making, for instance in connection with market dominance, Section 312 of the Federal Network Agency for Electricity, Gas, Telecommunications, Posts and Railways regularly conducts market studies on both companies licensed in accordance with the Postal Act and those holding so-called old-type licences.
Read MoreDutch postal company TNT NV wants to expand in Germany, grabbing some of Deutsche Post World Net AG’s market share in mail delivery, board member Harry Koorstra told Frankfurter Allgemeine Zeitung. The company wants to set up logistics centres in Munich and Berlin and is also not ruling out acquisitions.
TNT is already present in Frankfurt, Stuttgart, Hamburg, and most recently in the Ruhr Basin. ‘If we have the densely populated areas, we’ll have the German market,’ Koorstra said. With this move, the company is preparing for the liberalisation of the German mail delivery business in 2008. In the longer term, Koorstra thinks Deutsche Post’s market share will decline to around 70 pct from today’s 95 pct, and he thinks Germany can only cater to three competitors if it is to be profitable.
Post & Parcel Magazine is our print publication, released 3 times a year. Packed with original content and thought-provoking features, Post & Parcel Magazine is a must-read for those who want the inside track on the industry.
