Choosing a dedicated carrier to transport goods for your business is no easy decision. There are several factors you need to weigh in order to secure a provider that will save you money, ensure customer satisfaction, and foster a reliable, long-term partnership.
Two of the biggest global shipping giants in the world are DHL and FedEx. If you’re considering either of these two companies, you may be wondering which is a better fit for your unique needs.
Here at Lojistic, we’re committed to keeping your business in the know on all things shipping. That’s why we’ve created an all-in-one guide that will help you understand the pros and cons of each carrier as of 2024. Read on to learn about key decision factors in the DHL shipping vs FedEx shipping showdown, such as cost, efficiency, reliability, and global reach.
Understanding DHL vs FedEx
DHL is a major shipping carrier and logistics enterprise founded in 1969. The brand is a subsidiary of a German company called DHL Group, which delivers more than one billion parcels each year.
FedEx is also a major global shipping brand. First founded as Federal Express Corporation in 1971, this carrier delivers millions of packages daily.
Both companies are deeply trusted carriers worldwide, but what makes some shippers choose one over the other? Let’s compare and contrast the core qualities you should look for when choosing the right shipping partner for your business.
Key Considerations in Choosing a Shipping Carrier
There are five main factors you should consider when selecting a shipping carrier:
- Service Coverage
- Speed
- Cost
- Reliability
- Customer service
Let’s take a look at how FedEx and DHL measure up in these categories.
Comparative Analysis: FedEx vs DHL
Statistics measuring the top 10 logistics companies in the world by revenue have ranked DHL at #2 and FedEx at #3. Clearly, there’s some fierce competition between these carriers, and we’re here to break it down based on the key considerations above.
Service Coverage and Network
Both FedEx and DHL deliver to 220+ countries and territories around the world. However, they happen to be based quite far apart. When it comes to the locale of their headquarters:
- FedEx finds its home base in the city of Memphis, Tennessee
- DHL has its HQ in Bonn, Germany
Delivery Times and Speed
Both DHL and FedEx offer quick, robust delivery services.
If you use DHL as a carrier, you can expect:
- An average delivery time of around three business days
- The option to pay extra for priority service that can get your parcel to its destination within 24 hours
FedEx offers a similar range of delivery times. While their standard shipping service can transport goods within 1-7 days, they also offer special options like overnight and same-day delivery.
Shipping Costs
Both FedEx and DHL calculate shipping costs based on a combination of factors such as:
- Origin and destination
- Number and type of packages
- Package size and weight
- Mode of transportation
- Speed of shipping needed
Both carriers also offer preferential rates for businesses that ship in a larger volume and frequency.
No matter which carrier you choose, it’s important to keep an eye out for hidden fees that could secretly drain your budget without you even knowing.
For example, FedEx shippers may be charged extra in some cases for:
- Non-stackable shipments
- Incorrectly packaged parcels
- Extended delivery area
As for DHL, this carrier has come under fire in recent years—they were accused of leading customers to believe that some extra fees were going toward government taxes, when a large portion was actually being used as a “processing fee” for DHL.
It's important to be aware of the specific rate changes that have taken effect in 2024. FedEx has implemented an increase in their shipping rates, which could affect your overall shipping costs depending on the services you utilize. Similarly, DHL has also adjusted their shipping rates this year, impacting the cost of international shipments in particular. Staying informed about the DHL and FedEx rate increases is crucial for managing your shipping budget effectively and making informed choices between carriers.
Package Safety and Handling
FedEx and DHL do their best to ensure that packages are handled with care, but every carrier mistakenly damages parcels from time to time.
DHL offers shipping insurance that customers can purchase to add an extra layer of protection to their transportation service in the event that unexpected parcel damage or loss occurs. This insurance acts as a safety net, saving the shipper from having to swallow the cost of a shipping mishap.
FedEx also offers a range of insurance options for both international and domestic shipments to secure the value of parcels. Customers can find detailed FedEx insurance rates in the FedEx service guide.
Customer Service
Both FedEx and DHL offer a multitude of channels through which shippers can gain access to support.
FedEx offers options such as:
- Self-service tools
- Call scheduling with a sales rep
- Live chat
DHL shippers can find help through:
- Email support
- Online help center
- Customer web portal
- Chatbot
FedEx's Competitive Edge
FedEx has quite the robust collection of shipping offerings. Their business segments include:
- FedEx Express
- FedEx Ground
- FedEx Freight
- FedEx Services
With such a diverse array of shipping options, you’re sure to find what you need with FedEx. But where does FedEx excel, and where do they fall flat? Let’s dive deeper to find out.
FedEx Service Strengths
A few of FedEx’s most formidable strengths include:
- A reputable and reliable tracking system
- Saturday delivery capabilities
- The possibility to negotiate lower rates
- Free packaging for account owners
FedEx Service Weaknesses
Shippers may find themselves frustrated by FedEx’s:
- Sometimes expensive and highly variable pricing
- Limited coverage in some areas
FedEx is famous for their fast delivery speeds, but that perk comes with a price tag. For businesses on a tight budget, using FedEx as a core carrier may not be feasible.
DHL's Market Position
While this carrier offers robust domestic shipping options, DHL’s primary strength is its international prowess.
If you plan to ship products out of the country on a large scale, you may find yourself most satisfied with their service.
DHL Service Strengths
The perks of choosing this carrier are plentiful—namely, because DHL:
- Has an international help desk
- Offers fast delivery by both air and sea
- Gives your customers On Demand Delivery
- Does not charge a pickup fee
DHL Service Weaknesses
Although DHL is a global powerhouse that specializes in international service, this carrier comes up a bit short when considering deliveries within the US.
The main cons of working with DHL is that this company:
- Has a smaller presence in America
- May charge extra for shipments to the US
- Can fluctuate in quality of service due to their large size
Specialized Services: Niche and Unique Offerings
With either carrier, you can enjoy special perks if you sign up to be a member of their loyalty programs.
My FedEx Rewards is a free program that allows business owners to:
- Receive a welcome offer
- Earn gift cards by shipping
- Enjoy special monthly bonus offers
DHL also shows appreciation to their loyal shippers. Customers who open a DHL Express Account for their business gain access to:
- Preferential rates
- Flexible delivery options
- A shipment management tool called MyDHL+
International Shipping: FedEx or DHL?
FedEx certainly excels when it comes to domestic shipping within America. However, if you frequently need to ship parcels across the globe, DHL may be a better option.
That’s because DHL is usually able to provide cheaper, faster international shipping than FedEx. Since DHL has a larger global network, they’re able to handle international shipping logistics with higher average efficiency.
However, both companies do offer smooth customs handling:
- DHL Express is one of the largest customs service providers in the world. Once your shipment information has been checked and transmitted, DHL works to expedite your clearance and deliver your goods efficiently
- FedEx offers an EXPRESSCLEAR Customs Clearance System which uses state-of-the-art technology to electronically transmit shipment information to the Customs Agency
Real-world Scenarios: When to Choose DHL vs FedEx
The key to choosing a carrier you won’t regret is finding a brand that offers the right combination of services for you. This means you may have to make small sacrifices in some departments to get the features you really want.
For instance, maybe you want the fastest delivery speeds but you don’t need your carrier to serve a wide-ranging area. Or, maybe you care most about your packages arriving on time reliably, even if they take a bit longer on average to be transported.
Even if a carrier is “good at everything,” you may still have to sacrifice by forking over a heftier payment on each invoice.
The bottom line is that as long as the specific features you prioritize are top-notch, you’re likely to find long-term satisfaction with your shipping carrier.
When choosing between DHL vs FedEx, ask yourself which of the following shipping scenarios sounds most familiar to you:
- You need to ship primarily in the US – For fast, cost-effective domestic delivery services, you can’t go wrong with FedEx. This carrier is particularly competitive when it comes to express, next-day delivery—and don’t forget their ability to deliver on Saturdays.
- You want to ship frequently on an international scale – If you foresee your business commonly shipping products globally, the faster speeds and lower costs of DHL’s international shipping services will likely suit you best.
Future Outlook and Innovations in Logistics
Shipping carriers as big as FedEx and DHL are constantly evolving to further improve their business models. For this reason, it’s important to look not just at the present state of each carrier, but also toward their futures.
Recently, FedEx has announced plans to enhance their services with tools like:
- Computer-assisted vehicles
- Artificial intelligence
- Robotics and drones
Meanwhile, DHL is not one to be left behind. Their team is currently working to develop:
- Supply chain predictive insights and risk analytics
- Autonomous mobile robots for transporting goods
- Advanced Internet of Things solutions
Making the Right Choice: DHL vs FedEx for Your Business
So, now that we’ve compared DHL vs FedEx, which carrier should you pick?
If you process a mixture of domestic and international product orders, you’ll likely be satisfied no matter which option you choose. Both DHL and FedEx provide consistently high-quality shipping services to businesses all around the world—it’s why they’ve been able to build up their impressive business structures and positive reputations.
However, keep in mind that FedEx tends to be cheaper and faster when you need to ship goods within America.
On the other side of the coin, as we’ve discussed, DHL typically wins out on an international scale.
Factors to Consider for Your Specific Needs
Before committing to any one carrier, ask yourself questions like:
- Where is my business going to be shipping the most products?
- Between speed, reliability, and cost, what priorities matter most to me?
By taking the time to weigh your options, you can determine which carrier will provide the greatest benefits for your business.
How Lojistic Can Help Optimize Your Shipping Strategy
Discover a smarter way to manage your shipping expenses with Lojistic, the comprehensive logistics management platform. Lojistic provides a powerful software solution for shippers looking to analyze and optimize their shipping spend. Here's how Lojistic can transform your shipping strategy:
- In-Depth Analytics: Understand your shipping patterns with DHL and FedEx using Lojistic's detailed analytics. This feature provides insights into your shipping volumes, costs, and trends, helping you identify which carrier offers the best value for your specific needs.
- Compare Mode for Parcel Shipping Cost Comparison: Make direct shipping cost comparisons between DHL and FedEx. Lojistic's compare mode allows you to see side-by-side comparisons of shipping spends, helping you to determine the most cost-effective option for your shipments.
- Detailed Reporting: Get comprehensive reports on your shipping activities with both DHL and FedEx. These shipping reports offer a deep dive into your shipping data, enabling you to pinpoint areas for cost savings and efficiency improvements.
- Shipping Contract Solutions: Lojistic can help you explore potential savings within your FedEx shipping contracts. Discover how you could be paying less for FedEx services by quantifying your saving opportunities.
Lojistic's platform is designed to give you a clearer view of your shipping operations with major carriers like DHL and FedEx. By analyzing your shipping data, comparing costs, and exploring contract solutions, you can strategically choose the carrier that best fits your business needs, potentially leading to significant cost savings and improved logistics efficiency.
Create a free account with Lojistic today and start optimizing your shipping strategy with DHL and FedEx.
In addition to our insights on DHL vs. FedEx, we also invite you to explore our comprehensive comparisons in our other blogs: DHL vs. UPS and FedEx vs. UPS. These resources provide further in-depth analysis, helping you make even more informed decisions when choosing the right shipping partner for your business needs.
Sources:
Fert Z. TOP 10 LOGISTICS COMPANIES BY REVENUE. Thread In Motion. April 30, 2021. Accessed January 26, 2024. https://www.threadinmotion.com/en/blog/top10-logistics-revenue
DHL vs. FedEx - Which is the Best & Cheapest? Cool Parcel. Accessed January 26, 2024. https://coolparcel.com/courier/compare/dhl-vs-fedex
Johnson E. Courier giant DHL padded own pockets with 'hidden fees,' class action alleges. CBC. April 15, 2021. Accessed January 26, 2024. https://www.cbc.ca/news/business/dhl-class-action-hidden-fees-1.5987195
What insurances does FedEx provide? FedEx. Accessed January 26, 2024. https://www.fedex.com/en-jp/customer-support/faq/invoices-and-payments/fees-and-charges/what-insurances-fedex-provide.html
Gupta S.K. FedEx SWOT Analysis (2023). Business Strategy Hub. January 26, 2024. Accessed January 26, 2024. https://bstrategyhub.com/fedex-swot-analysis/
Who Gets the KO in the Shipping Ring? The Pros and Cons of FedEx vs UPS Shipping Services. At Your Business. Accessed January 26, 2024. https://www.atyourbusiness.com/blog/who-gets-the-ko-in-the-shipping-ring-the-pros-and-cons-of-fedex-vs-ups-shipping-services/
What advantages does DHL have over FedEx or UPS? Preferred Shipping Inc. Accessed January 26, 2024. https://preferredship.com/kc/advantages-dhl-fedex-ups/
FedEx. MyFedExRewards (US). Accessed January 26, 2024. https://getrewards.fedex.com/#/login
EXPRESSCLEAR Customs Clearance System. FedEx. Accessed January 26, 2024. http://www.fedex.com/gp_english/international/customsservices/expressclear.html
Author
Matt Bohn
Matt Bohn
Director of Parcel Rate Services
Prior to his role at Lojistic, Matt held significant positions in the industry, including his tenure as Senior Pricing Advisor at FedEx. Matt analyzed pricing programs and wrote pricing contracts for some of FedEx’s largest e-commerce and retail shippers. He also managed projects for the FedEx Global Pricing Approval Systems and Strategic Account Executive Inputs.
Matt earned a BS in Computer Engineering and an MBA in Finance from the Joseph M. Katz School of Business at the University of Pittsburgh.