DHL Raising Rates for U.S. Shippers by 5.9%

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The increase corresponds to a FedEx rate hike as carriers say inflation and investments are driving up their costs.

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A spokesman said the increase announced on Friday would apply to US account holders in 220 countries and territories or serving DHL Express. The company, which operates mostly international delivery services in the US with limited domestic operations, increased rates by an average of 4.9% for 2021 and an average of 5.9% for 2020.

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FedEx said last month that it would increase its prices on its services by an average of 5.9% over the next year, the first time in eight years from the carrier or rival United Parcel Service. Inc.

outpaced the 4.9% annual increase. UPS hasn’t announced its plans for rates in 2022.

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DHL Express last month said it would invest $360 million in upgrading and adding facilities in the US and strengthen its freighter fleet to handle the growing e-commerce volumes in its network.

Cathy Roberson, head of research and consulting firm Logistics Trends & Insights LLC, said she expects rising parcel costs to change how businesses, especially those shipping to consumers, manage their logistics.

“Retailers may need to rethink the whole ‘free shipping’ offering that they offer to their customers,” she said. “It’s going to be trickier for the customer in the end, because shippers—such as retailers, manufacturers, wholesalers and so on—can’t absorb the higher costs. They have to push them in some form or the other. “

Lydia O’Neal at [email protected]

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