Last Mile Brief 8/08/2023: Germany’s Federal Network Agency rejects Deutsche Post’s bid to raise rates
You can read this article in 2 minutes
Last Mile Brief is sponsored by:
Want the Last Mile Brief sent to your inbox every weekday? Sign up for free here.
The cost of sending a standard letter in Germany will remain 85 cents after the country’s Federal Network Agency rejected Deutsche Post’s application to raise rates.
Citing increased fuel and labour costs in particular, Deutsche Post DHL Group made an application in May to raise rates from 1st January 2024 – a year earlier than it had planned.
Prices are typically increased every 3 years, with a 5 cents rise introduced in 2022. The proposed 2024 increase would see rates go up from 55 cents to 85 cents.
According to reports in Germany, the country’s regulators ruled that Deutsche Post had not adequately demonstrated how its costs have increased. In addition, the regulator noted how the still company was still turning a profit delivering mail.
Deutsche Post can nonetheless appeal the decision in order to proceed with their plans to raise prices next year.