DHL reverses parcel price increases

The transport service provider DHL is shying away from the dispute with the Federal Network Agency and is reversing the price increases in force since 1 January 2020 as an investigation of the brainbi price competition shows.

As DHL announced today, the parcel service will reverse the price increases for parcels, packages and additional services for private customers as of 1 May 2020. This is because the German Federal Network Agency had initiated proceedings against DHL on January 28, 2020 for a retroactive review of charges.

Price increases for private customers back to previous level from May

It is true that DHL could take legal action against the Federal Network Agency. In the dispute, the Federal Network Agency is of the opinion that the price adjustments as of January 1, 2020 would lead to significantly higher revenues than DHL had initially estimated. In other words: DHL is charging excessive parcel prices.

DHL counters this by claiming that on 1 January 2020 it increased parcel and package prices for private customers by an average of three percent after three years of price stability. This had become necessary as a reaction “to significant cost increases in the personnel and transport sectors and extensive investments in quality and service improvements”.

DHL shuns litigation

Although DHL does not share the agency’s assessment, it does not want to undergo a ‘lengthy legal dispute with an uncertain outcome’, as DHL spokesman Dirk Klasen puts it. All price increases would, therefore, be reversed. From 1 May 2020, the price level of 31 December 2019 is to be restored.

Klasen justifies the fact that the reversal of the increase is to take another three months with “the now necessary adjustments to the IT systems and the customer information, which must be physically available in the more than 24,000 acceptance points.