Parcel shippers turn the price screw

Parcel shippers turn the price screw

Sending parcels in germany is becoming more expensive. The german post office raises to 1. January postage for parcels weighing up to 5 kilograms that private customers have franked at a branch office. The price increases by 50 cents to 7.49 euros, announced DHL package.

Parcels up to 5 kilograms franked online continue to cost 5.99 euros. All other prizes also remain unchanged. The last price increase for 5-kilo packages was in 2014.

Prices are also rising for other parcel services. According to a DPD spokesperson, private customers will have to pay between five and ten percent more from the new year, depending on the size of their parcels. No final decision has yet been made at hermes on a price increase for private customers. "But it can be assumed that something will move in the medium term," said a company spokesman.

Parcel delivery services are struggling with rising costs for their services, according to their own information. The industry leader deutsche post, which had to cope with a slump in profits in the parcel business, wants to push through significant price increases. "Our industry has a fundamental problem, because delivery is underpaid," post office boss frank appel told the "welt am sonntag" newspaper. The individually agreed terms and conditions with corporate customers increased as of january 1, 2009. January 2019, the german postal service had already announced in september.

The other services are also turning the price screw on the bulk mailers. Hermes, a parcel service belonging to the otto group and the second-largest in the industry in germany, had already raised prices for corporate customers by an average of 4.5 percent last spring. Further increases are to follow. DPD business customers to pay 6.5 percent more in new year.

The industry expects a further increase in the number of parcels shipped in germany in the coming years. Deutsche post expects an increase of around five to seven percent a year by 2020. In the first nine months of 2018, 1.047 billion parcels were posted at the post office in germany – an increase of 8.4 percent.

Sustained growth poses major problems for parcel services in finding new drivers. "The labor market is empty", hermes germany boss olaf schabirosky had recently told the "hamburger abendblatt" newspaper. Over the course of the year, his company has had around 1,000 drivers poached from competitors who could pay better.

Lower saxony, meanwhile, is planning a federal council initiative in favor of parcel delivery staff employed by subcontractors. "The major logistics companies must not shirk responsibility for the wage and working conditions of the courier drivers and parcel carriers employed by subcontractors," said minister president stephan weil (SPD) on friday. Similar to the meat industry, large companies in the logistics sector will in future also be held responsible for paying subcontractors’ social security contributions.

According to the trade union verdi, only two of the five major parcel services in germany work predominantly with their own, permanently employed deliverers. "All parcel services must be bound by collective bargaining agreements and they must help ensure that this also applies to the subcontractors they use and that they pay them according to collective bargaining agreements," demanded andrea kocsis, deputy chairwoman of the trade union ver.Di.

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