DHL increase prices for Jamaica

DHL Express, which offers courier and express delivery services to business and private customers, will be increasing its prices in Jamaica by an average of 6.9 per cent, effective January 1.



However, the company said that would be offset by a two per cent reduction in the fuel surcharge index.



The annual rate increase is based on a number of factors, the primary one being the impact of general price inflation on input costs for the express industry, DHL said in a statement.



“It also takes into account costs that are specific to the express industry which are not directly linked to inflation, including the impact of regulatory measures such as additional security requirements,” the company said.



DHL said “the industry has absorbed costs in order to comply with these externally imposed requirements whilst ensuring that delivery times and service quality continued to improve.”



It referred to a recent study by the Chicago, United States-based management consulting firm, ATKearney, which found that “volumes for the industry have increased consistently in recent years, while revenue per shipment has not yet returned to 2008 levels.”



Ken Allen, chief executive officer of DHL Express was quoted as saying that the price increase the company is “putting in place globally for 2013 is aimed at off-setting rising costs, including external costs that are out of our direct control and cannot be compensated through productivity improvements or economies of scale.”



He added that “we are introducing our rate adjustment for 2013 with a clear focus on maintaining our value proposition. Our annual price increase is an important factor in maintaining the significant investments we make in our global network, which offers world class delivery performance for the benefit of our customers.”



business@gleanerjm.com