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One of the largest logistics operators in the world, DHL, has increased tariffs for delivery, additional services and fees, as well as customs declaration services in Russia by an average of 35% since November 1. This is stated in a letter sent to customers (RBC has it).
"In recent years, the world has faced unprecedented challenges that have required a significant restructuring of logistics chains <...>. In accordance with the global pricing policy, DHL Express annually reviews the cost of services, taking into account a number of factors, including inflation, operational and other costs, such as the cost of air transportation, cars and their components, fuel and lubricants. — RBC) and fuel, including aviation, an increase in tariffs for airport fees. All this has a significant impact on the cost of our services," the letter says.
Based on the published price list on the carrier's website, prices for delivery to countries per 1 kg of cargo remained the same as before, but the cost of related services increased. For example, the premium for non-standard cargo dimensions increased by 37%, to 4.8 thousand rubles per seat. Transportation of lithium batteries — can only be transported in cargo planes) - by 72%, up to 2 thousand rubles, delivery to high-risk countries - by 64.6%, up to 2,88 thousand rubles.
The previous time DHL indexed tariffs was at the beginning of 2023, but the company did not specify exactly how they changed. According to the founder and head of the customs clearance and logistics service "Aikastoms" Vladimir Aksenov, earlier DHL annually indexed prices by a maximum of 10%.
The press service of the Russian DHL explained only that the level of indexation varies from country to country, depending on local conditions.
In what form is DHL present in Russia?
DHL is headquartered in Germany. The main business for the global company is international express delivery of documents and cargo from door to door, in particular delivery to a certain time (Time Definite International, TDI). According to data from Market Intelligence research company for 2021, which DHL cited in one of its reports, its share in the TDI segment in the world was 43%. The main competitors were American FedEx (including TNT acquired a few years ago, 30%) and UPS (20%). According to the results of 2022, global DHL revenue amounted to €94.436 billion, in the first half of 2023-€41.012 billion.
DHL continues to operate in the Russian market, although it has reduced the volume of services provided: from September 1, 2022, the company stopped delivering parcels within Russia, retaining only transportation abroad. According to the global DHL report for 2022, the company was going to sell the local business, but due to the change in the terms of sale, this "became impossible". It also noted that the DHL express delivery division continues to deliver "humanitarian and diplomatic items" to Russia.
The main legal entity of the company in Russia is JSC "DHL International". Its revenue last year decreased by 50% compared to 2021, to 9.5 billion rubles, and net profit - by 93%, to 158 million rubles, according to data from the Rusprofile service. Data for the first half of the year are not provided.
At the same time, the main competitors of DHL — FedEx and UPS — completely suspended their activities in Russia after the start of a special military operation in Ukraine. The Russian legal entity UPS is currently in the process of liquidation. There is a warning on the FedEx website that "all international and domestic transportation services of FedEx and TNT to / from / within Russia are temporarily suspended until further notice."
What will the promotion affect?
Mikhail Burmistrov, General Director of INFOLine-Analytics, called the current increase in DHL tariffs "non-standard". "DHL still has a significant market share, but it is gradually declining, and customers are looking for alternatives. Russian Post has a great potential to take this share, but DHL provided transportation services mainly to European countries, and there it is not very easy for Russian companies to compete objectively, " Burmistrov said.
RBC sent a request to the Russian Post.
According to Fyodor Virin, founder of the Data Insight agency, the segments in which DHL operated in Russia have declined significantly: "The segment of foreign or Russian companies with foreign counterparties that sent corporate securities abroad has been falling in recent years due to a reduction in paper turnover and fell significantly after February 2022. The segment of sensitive deliveries, where speed and accuracy are important (spare parts for medical devices, for example), is significantly reduced due to the curtailment of operations of some customers. Deliveries for Russian sellers from eBay disappeared after the latter actually left Russia in 2021-2022."
According to Olga Lutseva-Er, General director of the research company NeoAnalytics, the volume of the express delivery market in Russia by the end of 2022 amounted to about 156 billion rubles, which is 30% more than in the previous year. She noted that if in 2020 the dynamics of this market was mainly influenced by the growth of purchases in online stores, then then the main factor was increased competition for the consumer. "There is a significant technological transformation of the market in the fight for the customer, companies are diversifying their existing service offering to meet all customer needs," Lutseva — Er said. According to her, there are several hundred logistics companies of various profiles operating on the market in total, and in recent years Russian players have seriously squeezed foreign ones. According to NeoAnalytics, by the end of 2022, the total share of international companies was 24%, and DHL — 7-8%.
"The current price growth of DHL looks especially high against the background of other logistics companies, which increase prices by an average of 5%" — says Vladimir Aksenov. "But customers who value the DHL service with its cargo tracking and express transportation are likely to stay anyway, because there are few or no decent replacements for these parameters." He noted that depending on the product, logistics costs can be 5-30% in the final price of goods, but since DHL mainly delivers expensive but compact goods, the share of logistics in the consumer price is not so high and the increase in tariffs should not affect it much. "Otherwise, the competition in this segment is only getting tougher, and it will be more difficult for DHL to withstand it, "said the head of Aikastoms.
"In recent years, the world has faced unprecedented challenges that have required a significant restructuring of logistics chains <...>. In accordance with the global pricing policy, DHL Express annually reviews the cost of services, taking into account a number of factors, including inflation, operational and other costs, such as the cost of air transportation, cars and their components, fuel and lubricants. — RBC) and fuel, including aviation, an increase in tariffs for airport fees. All this has a significant impact on the cost of our services," the letter says.
Based on the published price list on the carrier's website, prices for delivery to countries per 1 kg of cargo remained the same as before, but the cost of related services increased. For example, the premium for non-standard cargo dimensions increased by 37%, to 4.8 thousand rubles per seat. Transportation of lithium batteries — can only be transported in cargo planes) - by 72%, up to 2 thousand rubles, delivery to high-risk countries - by 64.6%, up to 2,88 thousand rubles.
The previous time DHL indexed tariffs was at the beginning of 2023, but the company did not specify exactly how they changed. According to the founder and head of the customs clearance and logistics service "Aikastoms" Vladimir Aksenov, earlier DHL annually indexed prices by a maximum of 10%.
The press service of the Russian DHL explained only that the level of indexation varies from country to country, depending on local conditions.
In what form is DHL present in Russia?
DHL is headquartered in Germany. The main business for the global company is international express delivery of documents and cargo from door to door, in particular delivery to a certain time (Time Definite International, TDI). According to data from Market Intelligence research company for 2021, which DHL cited in one of its reports, its share in the TDI segment in the world was 43%. The main competitors were American FedEx (including TNT acquired a few years ago, 30%) and UPS (20%). According to the results of 2022, global DHL revenue amounted to €94.436 billion, in the first half of 2023-€41.012 billion.
DHL continues to operate in the Russian market, although it has reduced the volume of services provided: from September 1, 2022, the company stopped delivering parcels within Russia, retaining only transportation abroad. According to the global DHL report for 2022, the company was going to sell the local business, but due to the change in the terms of sale, this "became impossible". It also noted that the DHL express delivery division continues to deliver "humanitarian and diplomatic items" to Russia.
The main legal entity of the company in Russia is JSC "DHL International". Its revenue last year decreased by 50% compared to 2021, to 9.5 billion rubles, and net profit - by 93%, to 158 million rubles, according to data from the Rusprofile service. Data for the first half of the year are not provided.
At the same time, the main competitors of DHL — FedEx and UPS — completely suspended their activities in Russia after the start of a special military operation in Ukraine. The Russian legal entity UPS is currently in the process of liquidation. There is a warning on the FedEx website that "all international and domestic transportation services of FedEx and TNT to / from / within Russia are temporarily suspended until further notice."
What will the promotion affect?
Mikhail Burmistrov, General Director of INFOLine-Analytics, called the current increase in DHL tariffs "non-standard". "DHL still has a significant market share, but it is gradually declining, and customers are looking for alternatives. Russian Post has a great potential to take this share, but DHL provided transportation services mainly to European countries, and there it is not very easy for Russian companies to compete objectively, " Burmistrov said.
RBC sent a request to the Russian Post.
According to Fyodor Virin, founder of the Data Insight agency, the segments in which DHL operated in Russia have declined significantly: "The segment of foreign or Russian companies with foreign counterparties that sent corporate securities abroad has been falling in recent years due to a reduction in paper turnover and fell significantly after February 2022. The segment of sensitive deliveries, where speed and accuracy are important (spare parts for medical devices, for example), is significantly reduced due to the curtailment of operations of some customers. Deliveries for Russian sellers from eBay disappeared after the latter actually left Russia in 2021-2022."
According to Olga Lutseva-Er, General director of the research company NeoAnalytics, the volume of the express delivery market in Russia by the end of 2022 amounted to about 156 billion rubles, which is 30% more than in the previous year. She noted that if in 2020 the dynamics of this market was mainly influenced by the growth of purchases in online stores, then then the main factor was increased competition for the consumer. "There is a significant technological transformation of the market in the fight for the customer, companies are diversifying their existing service offering to meet all customer needs," Lutseva — Er said. According to her, there are several hundred logistics companies of various profiles operating on the market in total, and in recent years Russian players have seriously squeezed foreign ones. According to NeoAnalytics, by the end of 2022, the total share of international companies was 24%, and DHL — 7-8%.
"The current price growth of DHL looks especially high against the background of other logistics companies, which increase prices by an average of 5%" — says Vladimir Aksenov. "But customers who value the DHL service with its cargo tracking and express transportation are likely to stay anyway, because there are few or no decent replacements for these parameters." He noted that depending on the product, logistics costs can be 5-30% in the final price of goods, but since DHL mainly delivers expensive but compact goods, the share of logistics in the consumer price is not so high and the increase in tariffs should not affect it much. "Otherwise, the competition in this segment is only getting tougher, and it will be more difficult for DHL to withstand it, "said the head of Aikastoms.
