Parcel volumes continued strong growth – letter, newspaper and magazine deliveries declined
The Finnish Transport and Communications Agency Traficom has published a postal market report on the year 2018. For the report, a survey was conducted to gather information on the development of different postal item volumes and the factors contributing to the developments.
The sector has undergone dramatic changes throughout the 2000s. Digitalisation has started a transformation that is reshaping the entire media sector and the way we communicate. Constantly evolving and increasingly diverse electronic solutions are widely replacing communication via traditional written post. This trend has a major impact on content providers and delivery companies alike.
As in previous years, the volume of letters continued to decline. In 2018, the decrease was approximately 7%. The total volume is divided among a larger group of operators than before as competing postal undertakings have gained a stronger foothold in the market. The downward trend also continued in the delivery volumes of newspapers and magazines. Traficom estimates that the delivery volume of newspapers decreased by a few per cent while the decrease in magazine volumes was slightly more rapid.
The strong economy supported the continued robust growth of online shopping in 2018. According to estimates, parcel volumes increased by more than 10%. The parcel delivery business has emerged as an alternative to replace the decreasing letter, newspaper and magazine deliveries. Based on an international comparison, it is fair to assume that e-commerce and parcel logistics still have ample growth potential because online shopping volumes in Finland are still very low compared to many other countries.