Starting June 1st, 2023 Our warehouse fee will be $0.65/cubic foot per month
In effort to lower the warehouse storage fee during inflation, we have went narrow aisle racking.This construction took us four months but the project is finally completed. With narrow aisle racking, we are able to drop storage by 24%.We as partners will go through this inflation together.
12/09/2024
TORONTO - A labor dispute at Canada Post has entered its fourth week, creating widespread disruptions across the country’s shipping network and leaving businesses and consumers scrambling during the peak holiday season.
The strike, which began on November 15, stems from stalled contract negotiations between Canada Post and the Canadian Union of Postal Workers (CUPW), which represents over 55,000 employees. CUPW has called for wage increases, improved safety conditions, and expanded postal services. Talks have continued, but disagreements over key issues persist.
Parcel delivery delays are snowballing as alternative carriers struggle to absorb the diverted volume. According to project44, a supply chain visibility platform, on-time delivery rates in Canada have dropped by 14% since late October. Small and medium-sized businesses are bearing the brunt of the disruption, with losses exceeding $1 billion, according to the Canadian Federation of Independent Business.
One example is a seed supplier in Prince Edward Island that cannot deliver holiday catalogs, instead incurring substantial storage costs. Similar challenges have been reported by businesses reliant on Canada Post for seasonal orders.
UPS, Purolator, and FedEx are grappling with capacity constraints as shippers shift their packages to these networks. UPS temporarily froze shipments from select partners to manage demand, while Purolator paused service for some shipping clients to maintain operations. FedEx has instituted package limits at retail locations to alleviate pressure on its system.
"During peak season, any additional volume strains an already busy network," said Maggie Barnett, CEO of LVK Logistics.
International mail has also been affected. The U.S. Postal Service suspended its acceptance of parcels bound for Canada, citing the inability to ensure timely delivery amid the work stoppage.
Even if an agreement is reached soon, experts warn that backlogs will continue to affect deliveries for weeks. Canada Post has stated it will process stored shipments on a “first-in, first-out” basis, potentially extending delays by up to 10 days after the strike ends.
“When the system restarts, there will be significant congestion,” Barnett explained. “It’s going to take time for operations to normalize.”
Despite ongoing negotiations, neither side has indicated a resolution is imminent. CUPW President Jan Simpson said recent union proposals included compromises on wages, health and safety measures, and job security, but Canada Post’s counteroffers fell short.
Canada Post, meanwhile, said it has made “significant moves” to address union concerns, including adjustments to weekend delivery schedules and pension structures. However, frustration remains high on both sides, with Simpson calling for greater urgency in the talks.
In response to the disruption, some businesses are adjusting logistics strategies to mitigate delays. Companies are turning to smaller regional carriers or using door-to-door services that bypass Canada Post entirely for cross-border shipments.
“Diversifying your carrier portfolio is key,” said Imtiaz Kermali, VP of sales at eShipper. “Relying on a single provider makes businesses vulnerable to disruptions like this.”
Experts stress the importance of transparency with customers during the strike. Clear communication about delays, offering in-store pickup options, and providing free or discounted shipping are among the strategies businesses are employing to maintain customer trust.
“The current challenges are an opportunity for companies to innovate and build goodwill with their customers,” said Jen Seran, a logistics expert.
As the strike continues, the ripple effects on Canada’s logistics landscape and broader economy remain profound. The holiday rush, combined with limited carrier capacity, has turned the situation into a critical test for businesses and supply chain operators alike.
Negotiators on both sides are under mounting pressure to find a resolution, but for now, Canada’s parcel industry remains in a state of flux.
SEO
Digital Marketing/SEO Specialist
Simon Mang is an SEO and Digital Marketing expert at Wordcraft Logistics. With many years of experience in the field of digital marketing, he has shaped and built strategies to effectively promote Wordcraft Logistics' online presence. With a deep understanding of the logistics industry, I have shared more than 300 specialized articles on many different topics.
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