The Canadian postal workers’ strike is creating significant challenges for shippers during the last mile peak season, a critical time driven by high holiday shopping volumes, returns, and events like Black Friday and Cyber Monday. With delays mounting and costs rising, the strike, which began November 15th, has exposed vulnerabilities in Canada’s shipping infrastructure, underscoring the importance of agility and visibility in supply chain operations.
The Current Landscape
On-time delivery performance in Canada has taken a substantial hit, now trailing the overall market by 8% and dropping by 14% in just the last month. This means nearly one in every three parcels is being delivered late, disrupting businesses and customers alike.
One of the primary reasons for this impact is Canada Post’s dominance in the market. As the leading last mile carrier in Canada and holding 13% of parcel deliveries tracked by project44, the strike has amplified the lack of carrier diversification. While shippers in other regions typically use an average of six carriers, Canadian shippers rely on fewer than three. This limited network leaves them with fewer options when disruptions arise.
The Cost of Alternatives
Shippers exploring alternatives like UPS face tough decisions. While UPS offers reliable services, their costs are up to 40% higher than Canada Post rates. For instance, shipping a standard 22-pound package domestically with UPS Ground costs $28.97, compared to Canada Post’s Regular Parcel service at $21.61. These price differences strain budgets, especially during a period of peak demand.
How project44 Can Help
Amid these challenges, project44’s visibility and resilience offerings can play a pivotal role in navigating disruptions like the Canada Post strike. By providing real-time insights and data-driven solutions, project44 enables shippers to:
- Identify Alternative Carriers: Access data-driven insights to diversify carrier networks and mitigate dependency on a single provider.
- Optimize Routing Decisions: Use predictive analytics to choose the fastest and most cost-effective shipping options in real time.
- Enhance Customer Communication: Proactively notify customers about delays and provide accurate delivery timelines, improving trust and satisfaction.
- Improve Supply Chain Resilience: Build agility into operations, ensuring preparedness for future disruptions.
project44 offers several key eCommerce Logistics solutions to help last-mile shippers mitigate the impact of this disruption. Consumer Visibility and Last Mile Connect provide real-time, normalized tracking data that helps businesses maintain transparency and visibility across now limited carrier networks.
Predictive delivery dates powered by AI enable retailers to quantify potential delays, giving end consumers accurate expected delivery windows, especially essential as the holidays approach. Our Last Mile Insights analytics help shippers understand carrier performance and identify alternative routing strategies during the strike. Proactive exception management in Last Mile Resolution allows customers to quickly address and resolve challenges, minimizing operational disruptions.
Features like delivery appointment scheduling and comprehensive returns visibility further support businesses in maintaining customer communication and operational efficiency during this challenging period. By providing actionable insights and flexible visibility solutions, project44 helps shippers navigate the complexities of the Canada Post strike with greater reliability and strategic agility.
Looking Ahead
The Canada Post strike serves as a stark reminder of the complexities and fragility of supply chains. To succeed in today’s unpredictable environment, businesses must adopt tools that provide visibility, adaptability, and strategic insights. project44 is committed to helping organizations navigate these challenges, ensuring shipments arrive on time, costs are controlled, and customers remain satisfied.
For more information on how project44 can transform your supply chain operations, visit www.project44.com.
