Business

Postal Service in Transition: Letter Business Experiences Dramatic Decline

In the digital age, postal services feel change: Calls for legislative amendment grow louder. Is communication being redefined?

Eulerpool News Mar 7, 2024, 11:00 AM

The digitization of communication is increasingly evident at the postal service. The volume of letter mail has significantly decreased in the past year, while the demand for packages continues to rise. This trend is primarily due to ongoing digitization, as many people now use alternative means of communication such as emails or chats, resulting in less need for letters.

As a result of this decline, Deutsche Post finds itself compelled to adhere to outdated rules dating back to the nineties. These rules stipulate, among other things, that 80 percent of deposited letters must be delivered on the next working day. However, in the era of emails, etc., this creates unnecessary time pressure for the postal service, leading to increased costs. For this reason, an amendment to the Postal Act is sought to adjust the requirements to the changed demand, thereby reducing costs for the postal service.

German Post now has presented its annual figures for the mail business, and these underscore the need for a change in legislation. Compared to the previous year, the volume of mail has dropped by 5.6 percent to about 12.6 billion. In the previous years, the decline averaged between two and three percent. This significant dip is clearly attributable to the ongoing digitization and the associated decrease in demand for mail.

But while Deutsche Post's letter business is declining, its parcel business is recording continuous growth. In particular, the increasing number of online orders is driving up the demand for parcel services. In 2023, DHL transported around 1.7 billion parcels in Germany, which represents an increase of 3.8 percent compared to the previous year.

Another Step by Deutsche Post Towards Sustainability: Ceasing Night Flights for Mail Transport. From March, no more aircraft will be used to transport letters between different locations in Germany, thus ending a decade-long practice of the corporation that was questionable in terms of climate protection.

Overall, the developments in the Deutsche Post's mail and parcel business highlight the increasing importance of digitalization and the associated changes in people's communication behavior. The revision of the Postal Services Act and the heightened focus on sustainability are important steps to adapt to the new conditions and remain competitive.

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