General rate increases from Europe to U.S.

As we have already shared in one of our Spotlight Newsletters from last year, the air freight industry is currently undergoing a period of raising market rates. This trend has continued during the end of 2017 and the first quarter of 2018 driven by very strong demand outgrowing capacity supply. European outbound lanes have been impacted in particular. In January 2018, Europe showed 11 percent year-on-year growth in international Freight Tonne Kilometers (FTK). The strong European performance corresponds with a very healthy demand for new export orders among the region’s manufacturers.1

While DHL Global Forwarding is continuously mitigating these increases to keep our buying rates at the most competitive level, and despite being the largest air freight forwarder, we are unable to avoid the increased rates set by our carriers to their full extent. DHL Global Forwarding’s buying rates outbound Europe into North America have increased by more than 50 percent from October to December of 2017. Consequently, we are required to pass some of these increases onto our customers in order to keep our service promise. The general rate increase that will be applied on Europe to U.S. lanes will be 0.10 EUR per kg (or 0.12 USD per kg), and will go into effect as of April 15.

Your DHL Global Forwarding sales representative will reach out to you with more details on the specific impact for your business and rates. Your ongoing support is highly appreciated and we thank you for your cooperation in advance. Please contact your DHL Global Forwarding sales representative for more details.

1) International Air Transport Association (IATA), Air Freight Market Analysis, January 2018