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Finnish postal operator Itella raises prices

Itella

Itella has announced price changes coming into effect on June 3, 2013, with rate increases forfirst-class and second-class stamps as well as for parcels due to decreasing letter mail volumes

and general cost increases.

From next month onwards, the price of a first-class stamp will increase 6.25% to 85 cents fromthe previous 80 cents while the price for a second-class stamp is going up from 70 to 75 centswhich equals a slightly higher increase of 7.14%.

In terms of parcels delivery, the price of the most inexpensive parcel weighing up to 2 kg isrising to €7.40 (formerly €7.20), an increase of 2.8%.

Itella added that the price changes only apply to postage paid in cash, not concerningcompanies’ contract services.

Finnish households spend slightly below €30 per year on average on shipping cards, letters andparcels, the company said. This brings the annual increase per household to about €1.50-€2.

Itella pointed out that the volumes of addressed letters sent by companies and consumers havedecreased at an annual average of 3-5% because of increasing digitisation.

“The price of an individual item is continuously becoming more expensive as the volume of maildelivered is smaller. Prices must be increased, despite the fact that Itella Posti has takensignificant cost-cutting measures. Prices must cover item collection, transport, sorting anddelivery costs,” the company stressed.

“Itella’s shipment costs are different in different locations. In remote districts, the costsmay be up to ten times those in cities. However, Itella Posti believes it is important to provideconsumers with equally priced postal services throughout Finland. Postage is the same, whether theletter or parcel sender resides five or 500 kilometres from the recipient,” Petri Aaltonen, ItellaPosti director, said.

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