The Canada Post strike, which has halted operations since mid-November, is causing widespread delivery delays and capacity challenges for alternative carriers. Businesses are struggling to maintain the flow of holiday packages amid mounting costs and disruptions.
Canada Post Strike Stalls Parcel Deliveries Nationwide
Since November 15, Canada Post workers have been on strike, halting operations across the country. The strike stems from unresolved contract negotiations with the Canadian Union of Postal Workers, which represents over 55,000 employees. The union is demanding better wages, safer working conditions, and expanded public postal services.
Negotiations have seen progress, with both sides exchanging counterproposals. However, disagreements persist, delaying resolution. Union president Jan Simpson highlighted the importance of addressing key issues like inflation-adjusted wages and health and safety measures. Meanwhile, Canada Post stated it has made significant moves on critical points, including pensions and weekend delivery.
Even after the strike ends, recovery will take time. Experts estimate up to 10 days will be needed to normalize operations, as Canada Post works through a backlog of stored parcels on a “first-in, first-out” basis.
Holiday Shipping Chaos as Carriers Struggle to Absorb Volume
The strike’s timing during the peak holiday shipping season has caused delivery delays and capacity strains across Canada’s parcel industry. On-time delivery performance has dropped by 14% since late October, according to project44. With limited carrier diversity in Canada, shippers face tough decisions between cost and speed.
The Canadian Federation of Independent Business estimates the strike has cost small- and medium-sized businesses over $1 billion, citing increased delivery expenses and lost sales. For example, a seed supplier in Prince Edward Island is unable to deliver holiday catalogs, facing storage fees for undelivered inventory.
Alternative carriers like UPS and Purolator are grappling with surging demand. UPS temporarily froze shipments from some clients, while Purolator limited pickups from certain partners to maintain network integrity. FedEx has introduced a cap of five packages per drop-off at retail locations, and the U.S. Postal Service suspended international mail acceptance to Canada.
Opportunities for Creative Solutions Amid Disruptions
To navigate the strike, experts recommend shippers diversify their carrier portfolios and ensure chosen services bypass Canada Post entirely. Regional carriers may offer alternatives but often have limited coverage and rely on external partners for national delivery.
Businesses should also prioritize clear communication with customers, providing updates on delays and offering incentives like free or discounted shipping. For companies with physical stores, leveraging these locations as pickup points can also mitigate delivery challenges.
The Canada Post strike underscores the vulnerabilities in a concentrated parcel delivery market. While the disruptions are costly, they offer an opportunity for businesses to rethink their logistics strategies, explore partnerships with regional carriers, and strengthen customer communication. These lessons could help create more resilient shipping networks for the future.
