What The Canada Post Strike Means for Freight Shipping

Canada Post’s Strike Is Impacting Businesses Across North America: Here’s What You Need to Know 

The nationwide strike by Canada Post workers, which began on November 15, 2024, has had a significant impact on the freight-shipping landscape of Canada. While this strike mainly affects mail and parcel services, its ripple effects can be felt across the freight industry too. For freight shippers, carriers, and businesses who rely on on-time deliveries, it’s imperative to understand the implications of the ongoing strike. Here’s what you need to know to minimize disruptions and keep your supply chain unbroken.

The Impact of Canada Post’s Strike on Freight Shipping

With Canada Post halting its operations, there has been a surge in demand for alternative shipping solutions. Parcels that would typically be shipped by Canada Post are now being routed through courier services and freight carriers. This shift has created additional pressure on freight carriers to fill the gap left by the postal service.

For freight shippers, this increased demand may mean higher rates and tighter capacity. Carriers are likely to prioritize larger, more profitable shipments, which will leave smaller shipments and Less Than Truckload (LTL) orders with fewer carrier options.

The biggest impact of the strike will be felt especially in rural and remote areas. With Canada Post’s services paused, many shipments are experiencing delays, and some businesses are struggling to find reliable alternatives. 

Freight shippers who rely on Canada Post for final-mile delivery may need to look for other options. Many courier companies are seeing increased demand, which could mean longer processing times and probably higher costs. Businesses that use Canada Post as part of their fulfillment strategy may need to explore alternative last-mile carriers, or alternatively door-to-door carriers who can help you avoid such issues completely.

At Freightera, we offer cross-border LTL and FTL services to provide shippers with reliable door-to-door alternatives. However, increased demand could result in longer processing times for customs clearance. We are happy to say that our cross-border rates have not seen an increase since the strike began.

Our Rate Defense™ is there to protect you from any unfair carrier charges! Switching from shipping parcels to freight is already difficult enough, and we’re here to ensure everything goes as smoothly as possible!

Impact on Freight Shippers and Carriers

As demand for alternatives to Canada Post increases, freight rates might increase with it, particularly for LTL shipments. The surge in small parcel volume being moved to freight carriers means that capacity can become strained, which can lead to higher rates and reduced availability.

While parcel alternatives such as FedEx, Purolator, etc. do exist, they will not be able to take on the entirety of the workload. LTL shipping is a great workaround as long as you have enough volume to ship. It’s important to look at the best options available in order to get the best possible freight rates you can.

Our vast network of LTL and FTL carriers can help shippers find the best alternatives. However, it is important for businesses to still act fast. You should book your shipments early to make sure you don’t encounter any capacity issues from carriers.

Carriers are likely to focus on high-volume, high-margin shipments, which may leave small businesses struggling to find affordable shipping options in reasonable timeframes. You, the shipper, should consider consolidating shipments where possible and booking early to secure better rates and ensure capacity.

Many businesses are turning to third-party logistics providers (3PLs) and freight brokers for support. These partners can help businesses find capacity, negotiate better rates, and manage the complexities of rerouting shipments. The current situation highlights the importance of flexibility when planning your shipment. Experienced shippers who can book with Freightera have easy access to alternative carriers, and they can adjust their shipping methods. Flexible shippers are overall in a better position to avoid inconveniences caused by the strike. Our platform makes it easier for shippers to compare carrier options and select the most cost-effective and reliable solution during times of uncertainty.

How Shippers Can Mitigate the Impact

With decreased capacity, it is essential that you book shipments as early as possible. Booking in advance can help you avoid the risk of delays and rate increases, especially for time-sensitive shipments.

You should consider diversifying your carrier options to include a mix of LTL, FTL, and courier services. At Freightera, you can easily compare rates and services to find the best fit for your needs during this disruption.

Proactive communication with customers about potential delays and adjustments in delivery timelines is crucial. Setting realistic expectations and transparency will help you maintain customer satisfaction, even when disruptions are outside of your control. 

You may want to use regional carriers as they may be less impacted by the surge in demand compared to larger national or international carriers. 

Conclusion

The Canada Post strike is creating challenges across the freight industry, with increased pressure on alternative carriers, capacity issues, and possible delays in last-mile and cross-border deliveries. However, if you act swiftly, leverage diverse carrier options, and utilize digital freight platforms like Freightera, you can mitigate the impact and keep your business moving.

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