DHL says customers continue to diversify production amid geopolitical uncertainty

Instead, Meyer said DHL is paying closer attention to changes in the European Union’s rules for low-value e-commerce imports, which could affect business in the third quarter.

On Jul 1, the EU introduced a temporary 3 euro customs duty on parcels worth up to 150 euros imported from outside the bloc as part of efforts to create fairer competition for European businesses.

“That’s one of those risk factors that we still weigh when we look at the full year,” Meyer said.

He added that the company also continues to monitor broader geopolitical developments, including the conflict in the Middle East, which has increased fuel, insurance and rerouting costs.

Meyer said DHL passes those additional costs on to customers and has been able to manage its global network despite the volatility, leading to higher utilisation in the second quarter.

He noted that insurance costs for flights into Israel had at times exceeded the operating cost of the aircraft itself.

“So that’s why risk premiums are justified. But similar to fuel, it is a cost recovery mechanism. We make our money on good service, on the base rates, and that’s what we want to continue to do,” Meyer said.