PostNord Denmark to end Universal Postal Service

PostNord Denmark to end Universal Postal Service

The universal postal service in Denmark will end on January 1, 2024. Exceptions apply to mail for small islands and visually impaired people, and international mail, for which procurement processes will be carried out. PostNord Denmark is negotiating a transitional agreement with the Danish state to ensure delivery of such items of mail until the procurement processes have been completed. The decision has no immediate impact on PostNord’s parcel operations in Denmark.

The market for mail has shrunk as a result of digitalization. With a 90 percent reduction in mail volumes since the start of this millennium, Denmark is the fastest country in the world to digitalize its mail. At PostNord, we have continuously adapted our business to cope with this structural decline.

The new law creates a new reality, which in turn means the implementation of a series of changes to our prices, offerings, and organization. The adaptation of the mail business will be carried out in line with continuing market developments in Denmark. It remains to be seen how customers will react to the new situation and it is therefore too early to say how fast the process will go. We will follow developments closely and continuously analyse their consequences.

“The new law will result in our mail business as we know it today looking different in the future. PostNord’s presence in the Danish parcel market is not affected by the changes. We still see great potential in the parcel market as a result of more and more consumers choosing to make purchases online. We continue to invest and develop the business in this area for the benefit of our customers throughout the Nordic region,” says Annemarie Gardshol, Group CEO and President of PostNord.

PostNord Denmark has been the provider of the universal postal service for a long time, and since 2020 has received compensation from the Danish state to cover the losses incurred in performing the universal service obligation. In 2023, the compensation is estimated to amount to DKK 150 million.

The new postal law in Denmark will enter into force on January 1, 2024.

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