Max Garland
5 min read
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Canada Post's struggles with ongoing labor disruptions and protracted contract negotiations are prompting shippers to lean more on private carriers, despite added fees and coverage limitations.
The government-owned carrier reported Wednesday that delivered parcel volumes are down 65% from the same time last year as the Canadian Union of Postal Workers' overtime ban that started in May stokes concerns over reliability. But shipping demand in Canada isn't plummeting — it's just moving elsewhere.
Canada Post-reliant shippers are shifting order volume to alternatives like FedEx, UPS, Purolator and DHL when able. Using these private carriers can come at a cost, however. As delivery providers bring additional volume into their networks, some are imposing surcharges they say will help maintain service quality during the high-demand period.
For businesses shipping in Canada, executing a strategy that limits disruption is key. As eyecare products seller Eye Drop Shop said on its website, "We understand the importance of timely delivery ... and are doing everything possible to maintain a smooth experience."
Shippers generally aren't going to one specific carrier as a Canada Post alternative, instead opting for a couple of delivery providers to pick up the slack.
DavidsTea has onboarded two new last-mile delivery providers to reduce its dependency on Canada Post since the previous strike hurt sales, CFO and COO Frank Zitella said on a May 28 earnings call. The tea seller said on its website that its carrier diversity means orders will have less exposure to Canada Post disruptions.
Menopod, which sells a cooling relief device by the same name, is prioritizing other couriers to avoid delays, per its website. The company is only using Canada Post when necessary, such as for PO box deliveries, and is asking customers to provide street addresses to limit those situations.
"While Canada Post is still operating, their ability to handle parcel volumes efficiently may be affected—and delays are likely," Menopod wrote in a shipping update.
Eye Drop Shop is using Purolator and FedEx, save for Canada Post-only coverage areas like PO boxes and some rural locations. Clionadh Cosmetics has opted for FedEx and DHL while removing all Canada Post shipping options from its website. Supplement provider Fullscript has been tapping UPS and Purolator while disabling PO box delivery options.
