Potential mail delivery could experience slowness.
Germany's Postal Law, last updated in 1998, is set to receive a facelift and be adapted to the digital age. This could potentially lead to longer wait times for customers receiving their mail.
The German Parliament has recently passed the first reform in the Postal Law in 26 years. The amendment aims to provide the German Post with more time for letter delivery while ensuring that they are delivered more reliably. The draft law, which was voted in favor of by the SPD, Greens, and FDP factions, and against by the Union and AfD, aims to guarantee a nationwide and affordable supply in the long term. To improve competition, the Federal Network Agency is set to receive more powers. The working conditions for parcel deliverers are also set to be improved.
Approximately 60 million letters and 10 million packages are sent daily in Germany. The goal is to ensure a consistent supply across the country. To achieve this, new rules for pricing and accountability are being introduced.
Currently, at least 80% of all letter mailings in Germany must be delivered the next day, and 95% should arrive within two working days. In the future, 95% of standard letter mailings should reach recipients within three working days and 99% within four working days. This change will allow the postal service to eliminate night flights in letter delivery.
"Bitter Pills" Included
DHL CEO, Tobias Meyer, has already stopped night flights for the transport of letters, anticipating the new law. "Longer delivery times no longer require night flights," Meyer stated. Packages weighing over 20 kilograms must now be transported by a courier with "suitable technical aids." The government will determine the specifics of this by the end of 2024.
Delivery companies must also register with the Network Agency as service providers. Customers will need to check the reliability of their subcontractors after three months and every twelve months to ensure they are complying with employment regulations.
Competitors have accused the DAX company of predatory pricing in the large customer business. To address this, the Network Agency will set the price for mass letter postage for private customers, creating a sort of price cap. The postage is currently set at 85 cents.
The Post has described the law as having some "bitter pills." The increased bureaucracy and access for competitors will make providing the universal service more expensive. "We hope now for a timely approval by the Bundesrat, so that our employees as well as consumers can finally have clarity and the already started regulatory process for the years 2025 to 2027 can be completed in a timely manner," they stated.
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The German Bundestag's recent reform of the Postal Law includes plans to give the German Post more time for letter delivery, which could potentially impact German Post's services, such as German Post's standard letter mailings now needing to reach recipients within three working days instead of two.
The Federal Network Agency, which will receive more powers due to the Postal Law reform, will also be tasked with monitoring the reliability of delivery companies' subcontractors to ensure they comply with employment regulations, potentially impacting how the German Post operates under the new law.
