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E-commerce boost for PostNord parcel volumes

Thursday, February 11th, 2016

PostNord has reported that its parcel volumes rose by 17% in the final quarter of 2015, as “e-commerce broke records in the run-up to Christmas”.

However, the  Nordic postal operator also noted that it is continuing to see a decline in mail volumes as a result of digitization.

In a statement issued yesterday (1o February), PostNord’s President and CEO Håkan Ericsson noted: “In total, mail volumes declined by 5% in the quarter, of which 9% in Denmark and 4% in Sweden. For the full year 2015 mail volumes fell by 8%, of which 16% in Denmark and 6% in Sweden.

“The substantially reduced mail income in Denmark is adversely affecting the result, [which is] why we are implementing a comprehensive restructuring program for the Danish business. For instance, agreements have been entered into with the Danish trade unions in order to adapt terms and conditions of employment to boost competitiveness, with estimated annual cost savings exceeding SEK 200m as of 2016.”

The Group’s adjusted operating income amounted to SEK 501m for the fourth quarter, up from SEK 440m for the same period in 2014.

Ericsson added: “Current postal regulations are not fully adapted to the increased digitization in the society and the consequent substantial drop in demand for classic mail services. Work on new postal legislation is under way in Denmark, and in Sweden the government established an investigation of the Swedish postal legislation. We welcome these measures since an amendment to the regulations is required to ensure a good postal service under reasonable economic conditions throughout Denmark and Sweden.”

However, Ericsson warned that “rapidly decreasing mail volumes remain a major challenge”, which will necessitate more “capacity adaptation” and “cost efficiency measures”.

Source: PostNord


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E-commerce boost for PostNord parcel volumes

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Direct Link Worldwide Ltd

Direct Link specialises in international cross border distribution and returns of e-commerce packages worldwide. Parent company PostNord (the merged Swedish and Danish Post Offices) supports Direct Link with IT expertise, postal connections and international logistics solutions, across the Nordic countries and intercontinentally.


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