Dissatisfaction with Postnord is growing, letters do not arrive on time and packages disappear. What is happening with the post office in Sweden?
In a series of articles reviews News24 why Postnord has become worse and cannot deliver the letters on time.
Here you can read the first part: Harsh criticism of Postnord: “More expensive and much worse”
The second part: The stress at Postnord caused Klara, 20, to crash: “Forgot everything”
Third part: Customers rage at Postnord: “Angry, sad and frustrated”
Fourth part: Protest against the Postnord CEO’s salary – earns 935,000 a month
Fifth part: More expensive postage the solution to Postnord’s chaos: “Something must be done”
Citymail ready to take over Postnord’s mission
In recent years, Postnord has had major problems with punctuality. According to the mandate from the Swedish Post and Telecommunications Board (PTS), 95 percent of domestic letters in Sweden must be delivered within two days.
It has only happened three times since the summer of 2022, in September and October 2023 and in February 2024, according to statistics obtained by Nyheter24.
The second largest in the Swedish postal market is Citymail, which has grown significantly in recent years. In five years, the company has gone from handing out 10-15 percent of the letters in Sweden to 20-25 percent, according to the report Swedish postal market 2023. During the same period, Postnord’s figures have dropped from 85-90 percent to 75-80 percent.
Is Citymail an alternative to taking over from Postnord? According to the company CEO Niklas Hyden is it a completely possible option.
– Citymail are open to the possibility and could handle it well with the right conditions. If we get the opportunity to take over the infrastructure and get access to the same resources that Postnord has for letter delivery, I think we could do this work efficiently and with high quality. Another option could be if existing infrastructure is freed up and made available for several actors to use, he tells Nyheter24.
Niklas Hydén became CEO of Citymail in February 2023. Photo: CitymailPostnord requires state support
While Citymail grows, Postnord gets less and less to do. During the first quarter of the year, the company’s letter volumes fell by 14 percent and parcel volumes by 4 percent, according to company interim report for Q1/2024. Despite that, Postnord made an operating profit of SEK 127 million during the same period.
The reduced letter volumes have meant that Postnord’s CEO Annemarie Gardshol required state support and reduced requirements for letter distribution in order to continue distributing letters in Sweden.
Postcode: Can cancel the assignment
Even the government is looking at one financing model for the post if it can no longer be self-financed, and that inquiry is received in June.
In a previous interview with Nyheter24 has Emma Maraschin, head of PTS’s unit for postal issues, said that government support for Postnord is not relevant because there is competition on the market in the form of Citymail, Bring and local players.
– Going in and subsidizing an actor in a competitive market is rarely very good, she said then.
Fewer and fewer letters are sent with Postnord. Photo: Tomas Oneborg/SvD/TTCitymails CEO: “Able to conduct high-quality mail operations”
Niklas Hydén does not believe that the government needs to add money for the post office to function.
Do you think it is possible to run postal operations in Sweden without government support and according to today’s requirements?
– Yes. There is absolutely no need for government support and government-directed support would also be devastating for competition. I am convinced that it is possible to run a high-quality and well-functioning postal service that reaches all citizens and companies in Sweden, says Niklas Hydén.
Why do you think Postnord has problems getting the letters out on time?
– I do not want to go into Postnord’s specific challenges. But one reflection is that Postnord has a very broad business with printing, third-party logistics and operations in several countries, which certainly entails some complexity. It might have been easier to focus on its core mission, to provide the universal postal service, says Niklas Hydén.
Nyheter24 has on several occasions sought Annemarie Gardshol and the person in charge at Postnord for an interview, but they have declined to participate due to “time and availability”.
Warning for Postnord scam: “Delete the message immediately”
Here you can read more news about Postnord.
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