COMPETITION WATCH: DHL Express USA hikes rates for 2005

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DHL Express (USA), Inc., has announced new express and ground delivery rates and fee adjustments effective January 16, 2005.

In keeping with price adjustments applied throughout the express and parcel shipping industry, rates for DHL Domestic Air Express and International Express will increase an average of 3.4%, said the company.

DHL Ground Service rates will increase an average of 2.9%. Rates for DHL@Home, the company’s expedited business-to-residence shipping service, will increase an average of 3.7%.

Concurrent to the 2005 rate changes, DHL will reduce its indexed fuel surcharge for Domestic Air Express and International Express by 0.5%, resulting in a net effective price adjustment of 2.9% for 2005 Express services. This adjustment will become effective January 30. Air express fuel surcharges are indexed by the industry to the U.S. Department of Energy average price for a gallon of kerosene-type jet fuel.

An indexed fuel surcharge for DHL Ground and DHL@Home shipments will be introduced on January 2, 2005. This fuel surcharge, initially set at 2%, will be indexed to the National U.S. Average On Highway Diesel Fuel Price as reported by the U.S. Department of Energy.

Additional details and effective dates of 2005 fee and rate changes will be available at www.dhl-usa.com as of January 3, 2005.

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