DHL Says Postage Hike Falls Short

DHL Says Postage Hike Falls Short

The logistics giant DHL has signaled a growing concern over the sustainability of Germany’s universal postal service, alleging that recent price increases have been insufficient to cover operational costs and maintain the mandated service level. In an interview with the “Rheinische Post” and “Bonner General-Anzeiger” DHL CEO Tobias Meyer cautioned against a strategy of continuously low postage rates alongside stringent regulation, arguing it poses a significant risk to the long-term viability of the comprehensive, privately funded postal network.

Meyer drew comparisons to Denmark, which has already abandoned its universal service obligation, highlighting that DHL requires a substantially higher operating profit – estimated at approximately €1.3 billion annually – to consolidate its package and mail operations with the planned expansion of new locations within Germany. This figure, he emphasized, is necessary to support the considerable investment required to modernize infrastructure and maintain service quality. According to the recently enacted postal law, a profit margin of this scale is anticipated. However, Meyer contends that the current regulatory practices are hindering the company’s ability to achieve this vital threshold.

The CEO also defended the continued implementation of surcharges during peak seasons like the Christmas period, asserting that these levies are essential to finance the significant investments needed to ensure network resilience during periods of exceptionally high demand. He stated that companies benefiting from this robust network, particularly during peak times, are now sharing a portion of these escalating costs.

Crucially, Meyer ruled out exemptions for smaller shipping companies, warning that such concessions could trigger legal action from DHL. This stance underscores a broader concern that a two-tiered system would undermine the financial stability of the universal service and ultimately necessitate a re-evaluation of the regulatory framework governing Germany’s postal service – a situation with potentially significant political ramifications and implications for consumers. The implicit threat of legal challenges adds further weight to DHL’s argument, potentially forcing policymakers to reconsider the delicate balance between affordable postage and the long-term sustainability of the national postal infrastructure.