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COMPETITION WATCH: DHL raises US rates 3.9% for express services

PLANTATION, Fla. --DHL Express (USA), Inc. has announced its new list rates for 2007, including a 3.9 percent incre...

PLANTATION, Fla. –DHL Express (USA), Inc. has announced its new list rates for 2007, including a 3.9 percent increase in the net average shipping rate for DHL Domestic Air Express and International Express, and an average increase of 4.9 percent for DHL Ground shipments and for DHL@home.

The increase for air express and international shipments is comprised of a 5.9 percent average increase in the base rates, offset by a 2.0 percentage point reduction in the Air fuel surcharge index. The new rates will be effective January 1, 2007.

In the first quarter of 2007, DHL will add a new dimensional weight system for oversized Ground shipments. If the dimensional weight is greater than the actual weight, dimensional weight will apply to Ground shipments that are three cubic feet (5,184 cubic inches) or greater. Packages less than three cubic feet will be billed based on actual weight.

Other changes effective January 1, 2007 include a $0.10 increase in the surcharge for Residential Delivery and for both residential and commercial Delivery Area Service. The Remote Area Service fee will increase by $2.00. Additional details of the 2007 fee and rate changes will be available at as of December 15, 2006.

DHL recently began operating a new automated sort facility at the DHL Air Park in Wilmington, Ohio – the principal DHL air & ground hub in the United States. The project, part of a $160 million U.S. hub automation initiative by DHL, will enable more rapid processing of shipments, increase efficiency of letter- and parcel-processing operations, and enhance tracking capabilities across the U.S. network.

Similar auto sort system upgrades at the company’s East Coast ground hub in Allentown, Pa. and its West Coast facility in Riverside, Calif. are set to follow the Wilmington hub’s improvements early next year.

Founded in San Francisco in 1969, DHL is a Deutsche Post World Net brand.

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