Purolator, UPS Temporarily Halt Courier Shipments Amid Canada Post Strike Backlog
The ripple effects of the ongoing Canada Post strike are putting strain on Canada’s shipping infrastructure. In response to overwhelming demand, Purolator and UPS have temporarily paused accepting shipments from smaller courier companies to manage capacity and prioritize essential deliveries.
Rising Demand Creates Shipping Bottlenecks
Purolator, a Canada Post subsidiary, confirmed the suspension on Thursday, citing severe weather conditions and an unprecedented surge in package volumes. The company emphasized the need to focus on critical shipments. Similarly, UPS has been scaling back package intake, with some warehouses reportedly nearing full capacity.
This pause has impacted intermediaries like eShipper, which connects small e-commerce businesses with large shipping carriers. Businesses reliant on these intermediaries now face limited options, leading to logistical challenges and increased costs.
Jon Thorpe, owner of Midnight Lightning, a climbing gear retailer, noted that switching from Canada Post to alternative carriers has driven up shipping costs, deterring customers. “When you’re ordering a $12 product and shipping is $15, it’s pretty much a no-go,” he said.
Union Strikes and Worker Disputes
The Canada Post strike, now in its third week, has been fueled by disagreements over wages and staffing policies. The union representing over 55,000 postal workers is pushing for wage increases to match inflation and opposes Canada Post’s proposal to hire part-time weekend staff at lower rates.
This labor dispute has left Canada Post unable to handle its usual volume, forcing businesses to pivot to private carriers like Purolator, UPS, and FedEx. However, the surge in demand has pushed these companies to their limits.
Small Businesses Feel the Pinch
The strain on shipping services has disproportionately affected small businesses. Some companies, such as Montreal-based cookie maker Felix & Norton, have halted order processing entirely due to a lack of viable shipping options. Others, like hosiery brand Sheertex, report facing steep surge pricing from alternative carriers.
While smaller regional carriers have stepped in to fill the gap, their limited coverage and inflated prices are making it harder for businesses to maintain operations.
Highlighting the Role of Canada Post
The current crisis underscores Canada Post’s dominant role in Canada’s shipping network. The organization handles the majority of personal mail and small business shipments, while private carriers typically focus on niche services such as oversized parcels.
Without Canada Post, the system has become imbalanced, leaving businesses scrambling for solutions. As the strike continues, businesses, consumers, and shipping networks alike are left navigating the growing challenges of a strained logistics system.
Source : The Canadian Press