International variable rates

In managing the number of items moving through our network late last year, we introduced measures to work through volume surges as quickly as possible – scaling our capacity in Auckland 70% and nationwide deliveries to over 2.4m items per week. 

From establishing temporary processing sites, to increasing our resource, redeploying our Express and Mail networks, operating seven days a week and procuring new equipment and containers, our response was a costly one. We were also operating under COVID restrictions, requiring shift separation, physical distancing, use of PPE and other controls, which reduce capacity and increase costs. 

Last year’s increased costs were not offset by revenue from additional parcel volumes, and to date, we have not passed these costs on to our customers.

Across the industry, ‘continuity fees’ are common practice to allow for incremental costs relating to unplanned events – i.e. natural disasters, a pandemic – events outside of the control of the service provider. 

Due to the sustained nature of the COVID pandemic it is no longer possible for us to continue to bear these additional costs. From 1 April, NZ Post will be introducing a new temporary fee to cover scenarios where additional costs over and above ‘Business as Usual’ are required in the short term to keep things moving sustainably and safely. 

The TCC rate will be reviewed monthly, in line with the additional costs required to operate our services. Each month, similar to our Variable Fuel Rate (VFR) and Road User Charges (RUC), the TCC rate for the following month will be published on our website. These can be viewed on this page. For the following month, we will aim to have the fee published and/or announced around the middle of the month. 

The TCC fee will be reviewed monthly and will remain in place as long as additional costs are incurred relating to events beyond our control.