Stricter regulations from 2025: new parcel labeling and controls
With the amendment of the Postal Act, the Federal Cabinet has made several adjustments and changes that will take effect from January 2025. One of the main intentions is to improve the working conditions of delivery staff. To this end, parcel service providers will be obliged by regulation to monitor their subcontractors more closely. In addition, Section 73 stipulates that parcels weighing over 10 kg and over 20 kg must be labeled accordingly. Parcels weighing over 20 kg must be delivered either with technical assistance or by two people. What seems trivial at first glance has far-reaching consequences for the transport industry and shippers.
Hidden cost trap: How missing parcel labels make shipping more expensive
The labeling of parcels weighing 10 kg or more is more than just a formality. The obligation to label is transferred to the shipper. However, simply updating the shipping programs is not enough. If the appropriate labeling is missing, the transport service provider must subsequently affix it, which will certainly be charged to the sender. In view of the continuously rising transportation costs and the still very low margins in the transport industry, some freight service providers will use this opportunity to increase the costs for these parcels accordingly.
Inaccurate weight information can make shipping significantly more expensive
Many shippers have previously indicated weights roughly, but with the introduction of surcharges for unmarked 10 kg parcels, it is essential to record the exact weight in order to avoid additional costs. The obligatory marking of a lighter parcel with 10 kg is not sufficient, as otherwise higher scale prices will apply. This requires investments in scales at packing stations and adjustments to hardware, software and processes, which leads to additional work.
The obligation to deliver 20 kg parcels with technical support or by two people has a significant impact on the processes of shipping service providers. Two possible approaches are:
Technical assistance: It is unclear what exactly is meant by this, which leads to uncertainty when using aids such as hand trucks. The additional handling is presumably used by transport service providers as an opportunity to increase prices for parcels over 20 kg.
Reorganization of transport chains: Shipping service providers could outsource overweight parcels and create a separate delivery organization with 2-man handling, which would open up new business areas for heavy shipments. These solutions are likely to be considerably more expensive due to the high personnel costs involved.
How parcel distribution reduces costs but puts additional strain on drivers
In view of the low margins in the mail order business and the fundamental cost
cost sensitivity in shipping, senders will have to consciously adhere to the weight limits in both cases. It is to be expected that, where possible, some consignments will be split across several parcels. However, it remains to be seen whether it is always easier for the driver if he has to deliver three 9 kg parcels instead of one 27 kg parcel. The freight service providers will also be pleased about a higher stop factor, as they often pay the carriers per delivery and not per parcel. In many cases, however, the parcels will be lighter and easier to handle, which will reduce the burden on drivers.
Unequal burden – small and medium-sized shippers fall behind due to new regulations
Carriers will benefit from the smaller parcel size, as delivery to parcel stores could be less limited by weight and size in future, which will enable more parcels to be processed. Packstations will also benefit, although size will remain a decisive factor here. Both delivery alternatives are being promoted across Europe in order to reduce costs on the last mile and increase efficiency. In Germany, this topic is gaining in importance as the savings in shipping costs associated with out-of-home delivery become more apparent.
The necessary investments and process adjustments place a greater burden on small and medium-sized senders than large senders, who often have the necessary infrastructure and degree of automation, which strengthens their competitive position. Companies such as Amazon benefit more than average. Transport service providers are also facing challenges, as international parcels must also be labeled accordingly, which requires the service providers to check and label them themselves.
Inequality in the regulations: Collection and handling remain insufficiently regulated
Interestingly, the provisions of Section 73 expressly refer only to delivery. In the case of collection, the marking and/or use of technical aids are neither mentioned nor prescribed. This means that the drivers collecting the goods are not protected and are placed in a worse position. This also applies to the transshipment centers, where employees have to handle all parcels equally. Scandinavia has already gone further in this respect: unloading and loading aids have been mandatory for parcels weighing over 20 kg for years.
The amendment to the Postal Act improves the working conditions of delivery staff through stricter labeling and delivery regulations for heavy parcels. However, this requires considerable investment and organizational adjustments, which place a particular burden on smaller senders. While the measures increase the safety of delivery staff, they also lead to higher costs and more complex shipping processes. In the long term, it remains to be seen how the industry will overcome these challenges and what impact this will have on competitiveness.
Turnaround in the transport industry: change in the law brings improvements and challenges for shippers
The amendment to the Postal Act brings significant changes for the transport industry and senders by regulating the labeling and delivery of heavy parcels in order to improve the working conditions of delivery staff. These new regulations require significant investment in technical aids and process adaptations, which will place a particular burden on small and medium-sized senders. Although measures such as unloading and loading aids and delivery by two people increase the safety of delivery staff, they also lead to additional costs and organizational challenges. The precise recording of the shipping weight and the required labeling will make the shipping process more complex and more expensive. Overall, the change in the law is an important step towards better working conditions, but brings with it significant operational and financial challenges, the effects of which on the competitiveness of the industry remain to be seen.
Our solutions for the challenges of the new Postal Act
In order to effectively master the challenges arising from the changes to the Postal Act, we offer you various solutions that support companies in determining better data and optimizing the shipping process. You can find more information on the changes to the law in our wiki entry.
In the following, we will show you options that can support you in optimizing your processes with regard to the change in the law in the future and save costs:
- Extended interfaces: Our shipping solution enables the transfer of calculated shipping weights via the interface, provided the master data is correct. This promotes the standardization of cartons and carton sizes, which increases efficiency in the shipping process.
- Scales and weigh-through scales: With precise scales, weights can be accurately determined, avoiding additional costs due to inaccurate weight determination. These devices are essential to ensure that your parcels are correctly labeled.
- Volume measurement systems: Our freight measurement and volume recording systems play a central role in complying with the new legal requirements by providing precise dimensions for shipments in the express and air freight sector. The ProductCube, palletcube and cartoncube are used to record the dimensional data of parcels, pallets and articles quickly and easily. The determined data is transferred via interfaces to the upstream systems (ERP/LVS/WMS) or directly to a shipping system. This avoids additional costs due to incorrect weight determination.
Adam Witalla
Sales and project manager at Heidler Strichcode
Has over 15 years of experience in the shipping and logistics industry. In his previous role at DPD Germany, he gained extensive knowledge in national and international parcel and express shipping, especially for medium and frequent shippers. Adam’s expertise in consulting and sales as well as his deep understanding of the challenges of the industry make him a sought-after expert to help companies implement efficient shipping solutions and optimize their processes.