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Sweden’s Postnord could raise postage price after record losses

The number of letters sent via Postnord in Sweden fell by a record amount in the second half of 2018.

Published: 19 January 2019 17:58 CET
Sweden’s Postnord could raise postage price after record losses
Photo: Emil Langvad/TT

“We have never had a greater reduction in letter volumes than in the second half (of 2018), both as a proportion of overall volume and in absolute numbers,” Postnord director of communications Thomas Backteman told Svenska Dagbladet.

The full extent of the loss will not be presented until February, but the large drop in numbers has already prompted Postnord CEO Håkan Ericsson to contact Minister for Housing and Digital Development Peter Eriksson to appeal for a change to the law on letter postage prices.

In a letter dated January 10th, Ericsson suggested that the company could reach the end of the road as early as this year.

“With this letter, I want to inform the responsible minister and government office that Postnord, in the autumn of 2019, will need to raise postage by 1 krona in order to conduct its societal function with financial viability,” he wrote in the letter according to Svenska Dagbladet’s report.

“Such an increase would, according to Postnord’s assessment, be in breach of the price cap in the [current] postal regulation,” the letter also notes.

READ ALSO: Postnord to raise prices over Christmas period

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POST

PostNord to continue Danish deliveries until 2023

The Danish arm of Swedish-Danish post distribution company PostNord is to continue delivering the country’s post until at least 2023 after a new deal was agreed with the government.

Published: 31 May 2021 09:26 CEST
PostNord to continue Danish deliveries until 2023
PostNord will deliver Denmark's letters until at least 2023. Photo: Mads Claus Rasmussen/Ritzau Scanpix

Post Danmark – the Danish subsidiary of PostNord – extended its contract to deliver post in the country with the government and its allied left wing parties, the transport ministry confirmed in a statement on Monday.

“Distributions of post is an important societal task which every sitting government must take responsibility for,” transport minister Benny Engelbrecht said in the statement.

A “large proportion” of people in Denmark still “do not receive their post digitally and therefore need to receive their post at their home address,” Engelbrecht said.

“It must be possible to receive a letter from your family and to write to your family, regardless of where in the country you live.

“That’s why the deal with Post Danmark has been extended, so Danes can be reassured that post will get through while political work to secure a new, long-term postal agreement continues,” the minister said.

The Danish government owns 40 percent of PostNord, with 60 percent owned by its counterpart in Stockholm.

The company has faced sharp criticism on several occasions since it began announcing losses in 2012. The Danish state has spent to keep the Danish side of the company afloat. Inefficient mail distribution and poor financial management have been among the criticisms.

PostNord was established in 2009 via a merger of the formerly-national Post Danmark and Sweden’s Posten.

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