Due to a change in Danish postal law, the universal postal service in Denmark will end on January 1, 2024.
Exceptions apply to mail for small islands and visually impaired people, and to 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 will have no immediate impact on PostNord’s parcel operations in Denmark.
The new law will result in a series of changes to PostNord Denmark’s prices, offerings and organization. The adaptation of the mail business will be carried out in line with continuing market developments in Denmark. The company stated that it remains to be seen how customers will react to the new situation, so it is therefore too early to say how quickly the process will go.
The reason cited for the change is the shrunken size of the mail market due to digitalization. With a 90% reduction in mail volumes since the start of the millennium, Denmark is reportedly digitalizing its mail more quickly than any other country in the world.
PostNord Denmark has long been the provider of the universal postal service, and since 2020 has received compensation from the Danish state to cover the losses incurred in undertaking the universal service obligation. In 2023, the compensation is estimated to amount to Dkr150m (US$22m).
Annemarie Gardshol, group CEO and president of PostNord, said, “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.”
Read more key mail updates from the parcel and postal technology industry, here.