Itella reveals 20m volume drop
Finnish operator Itella has said that mail volumes have dropped by 20m during the period January to May 2010. The company announced that the volume of the addressed mail delivered was 3% lower than during the same period of the previous year.
The volume of letters, magazines, addressed direct marketing messages and parcels delivered by Itella has been declining for more than 18 months. The volume of the addressed mail delivered has been decreasing by approximately 200m items at the annual level.
“The decline in delivery volumes is affected by both the transition from paper to electronic communication, and the economic recession. Itella has been doing its best to adapt to the changes by means of efficient cost control. At Itella Mail Communication, the number of personnel has decreased by about 1,500 persons in less than two years. Despite this, the unit costs are rising because the universal service obligation – i.e. five-day delivery and an extensive outlet network – creates costs that cannot be easily adjusted according to the delivery volumes. At this point the mail volumes are not showing any clear signs of the improved economic situation,” said Kari Kivikoski, Senior Vice President at Itella Mail Communication.
