Postie service under more pressure from increased costs.

 

Australia Post will raise the price of parcel and package delivery services by as much as 10 per cent from July. 

 

The postal service announced the price hike last week, outlining changes to fees for several services including business mail, domestic and international parcel services.

 

The price increases will range from a jump of 3.5 per cent to 9.95 per cent, depending on the product category.

 

Australia Post has previously stated that the boom in e-commerce would not be enough to turn Australia Post’s fortunes around, given the fixed costs of the letters business were so significant.

 

Australia Post executive general manager of post, parcel and e-commerce services, Gary Starr, said last Friday that the carrier was also on the receiving end of soaring costs of doing business.

 

Included in the price changes is a 4.6 per cent leap for the international parcel services, a 5.3 per cent hike in business letters, an 8.7 per cent jump for unaddressed mail services, and a 9.95 per cent price hike for domestic parcel services.

 

In addition, a manual handling surcharge for oversized packages will increase from $11.50 to $14.