With decades of leadership in the supply chain and delivery sectors, Rohit Laila has witnessed the profound transformation of global logistics firsthand. As an innovator who balances traditional postal requirements with the high-speed demands of modern e-commerce, Laila offers a unique perspective on how legacy institutions like Bpost are navigating an era of dwindling mail and skyrocketing parcel volumes. Our conversation explores the structural shifts in the industry, the economic reality behind the rising price of stamps, and the strategic modernization required to keep national networks sustainable as consumer habits continue to migrate from physical letters to digital platforms and online shopping.
The data reveals a stark shift in communication habits, with only 22% of people still sending traditional letters today compared to 41% just half a decade ago. How is the logistical infrastructure being overhauled to handle this decline, and what specific measures are required to manage the rising cost per item as mail volumes continue to drop?
The reality we are facing is a mechanical shift in the economics of delivery; when volumes fall, the fixed costs of maintaining a nationwide network are spread across fewer items. In the first quarter of this year, we saw mail volumes plummet by 14.3% compared to the same period last year, which creates a significant pressure on the cost-per-item. To modernize, we are focusing on network density and operational efficiency, ensuring that our carriers are not just delivering letters, but are part of a multi-purpose logistics stream. This necessitates price adjustments, such as the Non Prior stamp moving to €1.77 for individual purchases, to ensure we can still provide a reliable service to every corner of the country. We are also integrating more sophisticated sorting technology to handle the varying formats of mail and parcels within the same infrastructure to offset rising labor costs.
When a consumer looks at the price of a single stamp, they see a small piece of paper, but you’ve noted that the price reflects a massive underlying operation. Could you break down what exactly goes into that cost and how investments in technology and sustainability are influencing these new rates?
A stamp is essentially a ticket for a complex, labor-intensive journey that involves collection, high-speed sorting, transport, and the final mile of delivery. The price, such as the €2.73 for a Prior stamp, covers the management of a massive physical infrastructure, including our network of 5,000 Pick-up Points that provide essential accessibility. We are also channeling significant investment into making our logistics network more sustainable, which involves transitioning to greener fleets and more efficient routing software. Furthermore, we must account for inflation and labor costs, which is why there is a mechanism for a potential 3% adjustment in 2027 depending on how the economic climate evolves. It is about maintaining a balance between a high-quality public service and the financial health of a company that must remain competitive in a digital age.
With domestic parcel rates set to increase by an average of 4.5% and the introduction of peak-period surcharges, how do you justify these changes to small businesses and frequent shippers?
The increase in parcel rates, such as the bpack 24h rising to €9 from its current €8.60, is a direct response to the heightened operational costs we face, particularly during times of extreme demand. The €1 surcharge applied between Black Friday and Christmas is a strategic tool designed to manage the massive influx of packages during the holiday rush. This surcharge helps us cover the temporary labor and additional transport needed to maintain our delivery standards when the system is under the most stress. Beyond just covering costs, this pricing strategy is intended to encourage our customers to spread their shipments more evenly throughout the year, rather than concentrating everything in a single, high-pressure window. We believe that by being transparent about these costs, we can work with shippers to create a more balanced and efficient supply chain for everyone.
Many users are worried about the impact on their monthly budgets, yet the data suggests the actual increase for most households is quite minimal. What strategies are being implemented to help customers navigate these changes while still utilizing digital and alternative delivery solutions?
For the average Belgian household, the impact of these rate adjustments is actually quite modest, representing an additional cost of only about 17 cents per month. We see that 99% of our customers are already making savvy choices by purchasing stamps in sheets of 5 or 10, which brings the price of a Non Prior stamp down to €1.72. To further mitigate costs, we are heavily promoting our digital solutions, such as online label printing, which offers more advantageous rates than traditional over-the-counter services. We also encourage the use of our 5,000 Pick-up Points, as delivering to a central location is more cost-effective and environmentally friendly than individual home deliveries. By choosing Non Prior mail, which 82% of our customers already do, users can maintain their mailing habits without a significant financial burden.
What is your forecast for the future of postal services?
I anticipate a future where the distinction between “mail” and “parcels” becomes increasingly blurred as logistics providers transition into fully integrated “delivery partners” for the digital economy. While letter volumes will likely continue their structural decline, the postal network will remain a vital backbone of national infrastructure, repurposed to support the circular economy, including returns and local logistics. We will see a shift toward even more decentralized delivery options, with Pick-up Points and automated lockers becoming the primary touchpoints for consumers. Success will depend on the ability to remain flexible, using data-driven insights to optimize routes in real-time while ensuring that the cost of service remains transparent and accessible to the public. The post office of the future will be defined not by the letter, but by its ability to connect people and businesses through a sustainable, tech-driven network.
