The Canada Post strike is the second major strike in six years to affect Canada’s mail and package shipments. What’s often the cheapest way for customers to get packages in Canada is now non-existent. It’s exposing a severe problem for eCommerce companies that didn’t create a more robust shipping system.
This article reviews the strike’s current status (as of late November 2024) and examines some possible outcomes.
First, A Little Background
The Canada Post strike, which started November 15, 2024, involves about 55,000 members of the Canadian Union of Postal Workers (CUPW). The strike began after a year of unsuccessful negotiations over fair wages, safer working conditions, and job security. Key issues include Canada Post’s proposal for weekend package deliveries and staffing flexibility, contrasted with the union’s demands for higher wages, better benefits, and job security.
The strike has disrupted mail and parcel services nationwide, leading to millions of undelivered packages, especially during the critical holiday shopping period. Canada Post has reported substantial financial losses.
USPS No Longer Ships to Canada
On November 29th, the United States Postal Service responded to the strike by temporarily suspending international mail shipments to Canada. USPS has blocked future shipments and is returning thousands of already mailed packages.
Negotiations between Canada Post and CUPW have been ongoing, with federal mediators involved to facilitate a resolution. However, industry experts say the strike could continue well into December.
In 2018, a postal worker strike in Canada lasted 31 days until the Canadian government legislated an end to the strike and forced workers to return.
How eCommerce is Responding to the Canada Post Strike
E-commerce services throughout North America are expected to run as promised, regardless of strikes, weather, or transportation problems. Customers expect their packages to arrive on time, so companies need to plan for disruptions. However, large and small companies can deal with the interruption differently, primarily because of resources.
Larger e-commerce platforms, like Amazon and Walmart, have their own distribution systems and only use Canada Post for “last mile” or local shipments to the buyer’s house. However, during the strike, they can quickly adapt using contract courier services specializing in regional package delivery or private services like UPS, Purolator, and FedEx.
The Canada Post Strike Matters Most to Small Companies
Smaller e-commerce companies have the most problems adjusting to the Canada Post strike. Many small companies rely on Canada Post exclusively to handle low-cost shipments. That keeps them competitive. However, e-commerce companies can’t be competitive if they can’t ship orders for a month.
Small companies can’t easily afford retail rates to ship FedEx or UPS to Canada. Companies can pay double the cost of using those services without a contract compared to shipping USPS to Canada Post.
The Solution for e-Commerce Shipping
This is why it’s essential for e-commerce companies, large and small, to have contracts with multiple shipping carriers set up well before an emergency strikes. Having a preset contract seamlessly allows their customers to switch to different carriers in the event of a strike or other emergency.
Having contracts established with carriers early also speeds up technical updates to your website, so customers know you’re responding quickly to their needs. Shipping options, terms of service, and marketing promotions all must be updated when switching carriers; however, if this is planned ahead of time, that switch is much quicker. Proper planning will make your e-commerce company more resilient to emergencies.
The other solution is to work with a third-party shipping service instead of shipping on your own. A third-party shipper, like Precision Fulfillment and Kitting (PFK), is prepared for service disruptions that might affect your business. That’s why people come to our service- we ensure you can always guarantee your shipping times.
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Contact PFK today to discuss how leveraging a third-party fulfillment service for your shipping needs saves money on shipping and makes your company more resilient to disruption. And that makes your company better.