Express Postal Cos expect no competition change in Latvia after EU Accession

The largest express postal companies operating in Latvia expect no significant change in competition once the Baltic state joins the EU on May 1 this year.

Baltic Logistic System CEO Julija Moreva said that all the potential competitors are already present on the Latvian market “and expecting a rise in the amount of shipments, there will be enough work for everyone.”

DHL Latvia CEO Romiel Kinber agrees.

Moreva did, however, say that competition from bigger companies and heightened EU requirements could force smaller courier companies to merge in time.

TNT Latvia director Martins Gerkens also said that current draft customs laws may give smaller courier companies a hard time to survive.

In general the companies said they are ready for Latvia’s EU accession and look towards the move with optimism, considering it a challenge, rather than a problem, as this will allow companies to react to market demand with more ease.

The Latvian public services regulating body reports that Baltic Logistic System holds a 45 percent share of the domestic express postal market. TNT Latvia claims it holds a 25-27 percent share on the Latvian international express courier market, while DHL claims it holds 50 percent of the market. Other companies including UPS, Fedex, Airkargo, Euro Express, MSG Kurjers and others also operate on the Latvian market.