DHL Express, one of the leading logistics company in Nigeria has announced that it will be increasing its pricing on “International, Domestic and Import Express products by 25%”.
The new price hike will take effect from the 1st of November, 2016.
The company provided a rationale for its decision, in an email alerts to all its business customers, DHL Express said:
“Thank you for choosing DHL as your international express shipping partner and for your continued support
The Nigeria Naira has continued to steadily depreciate in value in relation to the US Dollar and other major currencies and as such we have been absorbing the financial impact of this depreciation Being a network business, we face the constant pressure of balancing currency exchange rates and inflation and we make the necessary budgetary decisions to counteract these effects where possible”.
“The weakened currency and macroeconomic performance in Nigeria has however continued to surpass our budgeted levels and necessitated a general price adjustment”.
“See below table which depicts the devaluation of the NON over the past 3 months (source www.oanda.com)
USD/NGN depreciation for the period 13 June 2016 — 12 September 2016. As a result, we are reviewing the rates for our International, Domestic and Import Express products by 25%, effective 1 November 2016”.
“We do understand that this will impact your business, and we will monitor the situation closely so that we can make the relevant adjustments in the future”.
This is yet another big blow to Nigerian small and medium scale businesses who rely on DHL Express for their local and international delivery means.
DHL Express is competing with UPS, FedEx and other local logistics companies. PageOne.ng Big Business Desk cannot independly confirm if other competitors have not increased their rates.
Naira (NGN) has seen the worst pressure in more than 20 years after the crash in global crude oil price fell to the lowest in more than 20 year. The National Bureau of Statistics, NBS announced that the inflation increased to 17.9% compared to 17.6% in August.
