Deutsche Post Pushes for Higher Postal Rates

Deutsche Post is advocating for a significant increase in postage rates, surpassing the 10.5% proposed by the Federal Network Agency. This demand arises from the insufficiency of the previous 4.6% hike in 2022 amid high inflation. CEO Tobias Meyer argues that the proposed increase fails to meet the legally required profit margin. In the third quarter of 2024, the company reported earnings of only 100 million euros in Germany's mail and parcel sector, falling short of the 330 million euros mandated by the Postal Act.

As digital communication reduces letter volumes, Deutsche Post insists on raising the standard letter rate from 85 cents to potentially 95 cents. The current postage rate will expire by year-end, with a new rate set to take effect in 2025. The Federal Network Agency must approve this change, but Deutsche Post has threatened to pursue legal action if their demand is not met. Meyer highlights that Germany is unique in Europe for its slower postage rate increases compared to inflation, emphasizing the urgency of their request.