ParcelPost rates to change to cover increasing costs

26 January 2012

Increasing costs mean the required postage for sending self-wrapped parcels domestically via New Zealand Post’s ParcelPost service, will increase from March 1, 2012.

ParcelPost postage rates will increase between 5 and 11 percent.  During the four years since the last across-the-board ParcelPost postage rate increase CPI inflation has increased by 11 percent, and petrol prices have risen more than 16 percent, along with many other costs. 

The reality is that the costs of providing parcel delivery services – in particular fuel costs – have increased markedly since 2008.

New Zealand Post is committed to maintaining parcel postage rates at the low end of the market, and even with this adjustment that will still be the case. 

There will be no increase for postage included bags which are currently used by just over half our parcel-sending customers.  There will be no increase for Commercial customers on ParcelPost contracts either.

Tracked domestic parcels sent to Rural Delivery addresses

There will be an additional charge for tracked parcels destined for Rural Delivery addresses. The charge of $2.80 to take effect from 1 March is to help cover the high costs of the Rural Delivery network.

It has, in recent years, been common practice for private sector delivery firms to levy an additional charge for parcel delivery to Rural Delivery addresses, to reflect the higher actual costs of delivery.  New Zealand Post is adopting a similar approach for similar reasons.

New Zealand Post’s Rural Delivery network involves more than 600 owner-drivers who reach approximately 220,000 locations around the country, covering 96,000kms per day.  It is important to have realistic pricing structures to ensure this network is sustainable.

The additional charge will not apply to:

  • untracked parcels 
  • tracked parcels being sent from a Rural Delivery address to a non-Rural Delivery address. 
  • tracked parcels being sent to a non Rural Delivery address.

It is regrettable that the changes to the ParcelPost postage rates and additional charge for tracked items destined for Rural Delivery addresses have had to be made, however these increases are required to ensure New Zealand Post maintains a sustainable delivery network.

NOTE: The range of in-store parcel services being trialled in our Kapiti stores are exempt from the increase and the additional rural delivery charge.