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PostNord introduces a temporary surcharge of 5% from 1 April 2020

Mar 25, 2020 15:00

PostNord is introducing a temporary surcharge of 5% on all products and services from 1 April as a result of additional costs related to the current market situation.

On 12 March the Government introduced the strongest and most restrictive measures we have seen in Norway in peacetime. Important institutions in society such as schools, kindergartens and educational institutions have been closed. Cultural and sports events have been cancelled, and a number of businesses have been prohibited from operating, such as restaurants, gyms, hairdressers, etc. The borders have been closed, and hubs such as ports and airports have been closed. Furthermore, there are a number of restrictions on travel and freedom of movement for individuals in Norway.

This means that the market situation and framework conditions have changed in a very short span of time. Against this backdrop, it is evident that the transport and logistics industry is in a force majeure situation, which has also been announced by NHO LT. To us at PostNord this means:

  • The provision of transport has been reduced due to increased sick leave, while it has also become significantly more difficult to use drivers from other countries as replacements.
  • Increased restrictions and risk in the distribution assignments and thus more complicated deliveries to businesses and consumers.
  • Lower transport volumes due to lower demand that results in lower capacity utilisation and thereby increased costs.
  • Tighter restrictions at the terminals and in the administration to avoid coronavirus infection that hamper efficiency.
  • Increased absence both at terminals and in the administration due to infection, quarantine or caring for children, that increases costs.
  • A severely weakened Norwegian currency that increases prices on foreign transporters and general purchases.

This means that there is a need to change the operational arrangement to ensure more efficient distribution, and we will therefore from 1 April reduce the frequency in certain areas, but maintain a normal frequency in cities and towns. Requirements to time schedules will also be waived, as has been announced previously. Quality measurements will be carried out as usual, but we will not distribute these to customers based on the force majeure situation where quality requirements to deliveries are waived.

With the restrictions that have been introduced, a reduced supply of transport and an expected lower volume in the time ahead, this will significantly increase transport costs. We therefore have no other option than to introduce a temporary surcharge of 5% on all products and services as of 1 April 2020.

PostNord has itself taken significant steps to reduce costs, including lay-offs, a hold on purchasing, wage cuts, etc. We are at a stage where everyone must make an effort, and this surcharge will cover some of our extra costs.

Regards,
PostNord AS