DHL to Raise Rates in 2017; Also Wins Two New Contracts

Nicky Loh/Bloomberg News

DHL will raise rates in the United States beginning next year, the company announced Oct. 21, while it also won two contracts to haul cars, food and beverages in the United Kingdom and China.

DHL Express said a 4.9% general price increase will go into effect on Jan. 2, 2017, for all U.S. customers. In a short statement, the company said that it “adjusts prices annually, taking into account inflation, currency dynamics and other rising costs, such as expenses related to compliance with enhanced security regulations, in each of the more than 220 countries and territories that it serves.”

Earlier in October, Estes Express Lines, New England Motor Freight and Daylight Transport raised rates 4.9% in their less-than-truckload businesses.

UPS Inc., FedEx Corp., YRC Worldwide, XPO Logistics and Old Dominion Freight Line Inc. also announced 4.9% increases recently. ABF Freight, a division of ArcBest Corp., hiked rates 5.25%.

UPS ranks No. 1, FedEx ranks No. 2, XPO ranks No. 3, YRC ranks No. 5, Old Dominion ranks No. 11, ArcBest ranks No. 12 and Estes ranks No. 14 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers.

Daylight ranks No. 22 on the Transport Topics sector list of top less-than-truckload providers.

Meanwhile, Toyota announced a three-year contract with DHL Supply Chain to manage parts distribution and warehousing in the United Kingdom. DHL will also be responsible to carry out same-day deliveries to auto dealers, covering the Toyota and Lexus brands. The company has similar contracts with BMW, Scania and Volvo in Europe.

DHL was also named the third-party logistics provider to the 2017 China Food & Drink Fair, the largest of its kind in the country, according to a company statement.

The festival in Fuzhou, China, is a semi-annual affair that features more than 4,500 exhibitors and 200,000 attendees, according to fair organizers. DHL has managed deliveries and return freight services for the China Food & Drink Fair since 2014, carrying about 27 tons of perishable goods during that period, the company said.

“Events like the China Food & Drinks Fair play a significant role in gaining exposure to China’s 1.4 billion consumers,” added Steve Huang, CEO, DHL Global Forwarding China. “Food and beverage companies need fast and reliable freight options that they can sustain well beyond a single event.”

DHL Supply Chain ranks No. 7 on the Transport Topics Top 50 list of the largest logistics companies in North America.