Impact of the Canada Post Strike on Peak Season Fulfillment

In September 2025, after 20 months of contract negotiations, postal operators, concerned about potential mass layoffs due to a government restructuring plan, launched a strike, disrupting mail and parcel delivery. This strike, occurring during the peak North American holiday shopping season, could not only cause short-term delays but also have a direct impact on B2B businesses and cross-border e-commerce sellers who rely on Canada Post for last-mile delivery.

While the postal service has pledged to address the mail backlog as quickly as possible upon resuming operations, it also acknowledges that a nationwide strike will have a long-term impact on service, and that restoring delivery could take weeks or even longer. As a professional international order fulfillment service provider, Chinadivision will provide companies with response strategies based on the impact of the incident, industry insights, and solutions.

Key Facts of the Strike: Timeline and Scope

Triggers of the Strike

The Canadian government announced a postal modernization reform plan, which proposed eliminating home delivery services, closing some rural post offices, and eliminating redundant positions to address annual losses of 1.5 billion Canadian dollars. This move sparked strong opposition from the Union of Postal Workers (CUPW), which immediately struck its 55,000 employees, paralyzing the national logistics network.

Business Disruption Details

Last-Mile Stagnation: During the strike, Canada Post stopped accepting new parcels, resulting in a backlog of over millions of parcels already in the network. Some remote communities that rely on the postal service even faced a "logistics vacuum."

Failure of Alternatives: Third-party logistics providers such as Purolator and UPS were forced to suspend services with some partners due to overloaded business, resulting in an "industry-wide order freeze."

Long-Term Recovery Difficulty: Even after reopening, Canada Post warned that it would take weeks for parcel processing and delivery to return to normal, posing a significant risk to Christmas season order delivery.

Historical Comparison and Financial Impact

A similar strike at the end of 2024 cost small businesses over 1 billion Canadian dollars, but this strike is larger in scale and the reforms are more controversial. Canada Post is losing $10 million Canadian dollars daily, and its financial crisis is further exacerbating service uncertainty.

The profound impact of the strike on order fulfillment:

Direct losses in peak season sales

Sellers who rely on postal delivery during key periods like Black Friday, Cyber ​​Monday, and Christmas face the triple risk of order cancellations, customer complaints, and damaged brand reputation.

Service disruptions: The strike has halted regular mail and parcel deliveries, particularly impacting small businesses and e-commerce companies that rely on Canada Post for last-mile delivery.

Hidden costs are rising: Alternative logistics costs are surging: UPS, FedEx, and other channels are increasing their rates and refusing to accept new orders due to capacity issues, forcing sellers to choose more expensive air freight or local delivery.

Uncontrolled inventory management: Backlogs of packages are increasing warehousing costs and the risk of stockouts, impacting supply chain flexibility.

A crisis of customer trust: Logistics delays are fueling consumer dissatisfaction, especially in time-sensitive categories like consumer electronics and apparel. Return rates could soar by over 30%, further squeezing profit margins. Long-term Risks: Canada Post acknowledges that the aftereffects of a nationwide strike could be long-lasting, with some customers potentially switching to other delivery services, leading to permanent business losses.

Why are such incidents a significant challenge for B2B and e-commerce businesses?

For international businesses and e-commerce companies, a stable logistics chain is crucial for peak season success. The Canada Post strike exposes the risks of relying solely on a single postal or logistics service:

Order Delays and Customer Dissatisfaction: During peak season, consumers are highly sensitive to delivery times, and delays can lead to refund requests, negative reviews, and even customer churn.

Increased Costs: Temporarily switching logistics channels can incur higher costs, while handling backlogs can require additional manpower and resources.

Damaged Brand Reputation: Failure to meet delivery deadlines can cast doubt on a company's reliability and professionalism, impacting long-term relationships.

As a professional order fulfillment partner, Chinadivision believes that companies should learn from this incident: logistics strategies must include redundancy and flexibility to cope with unexpected situations.

How can Chinadivision help you avoid losses?

Multi-channel Logistics Layout

Forward Overseas Warehouses: Leveraging Chinadivision's overseas warehouse network, we pre-stock inventory at local warehouses in Canada, enabling localized "last mile" delivery and mitigating the risk of cross-border logistics disruptions.

Dynamic Route Optimization: Utilizing real-time logistics data, we automatically switch to reliable delivery channels such as FedEx, DHL, and UPS, ensuring order fulfillment within 72 hours and avoiding delays caused by channel disruptions.

Data-Driven Inventory Management

Intelligent Replenishment System: Adjusts overseas warehouse inventory levels to prevent out-of-stocks and backlogs caused by logistics disruptions.

Safety Stock Strategy: Buffer inventory is maintained for high-risk categories to ensure peak season sales coverage.

Compliance and Policy Forecasting

Government Relationship Management: The Chinadivision team continuously monitors Canada Post reforms and provides businesses with early warnings of policy risks.

Contingency Agreement Signing: Establishing "strike protection clauses" with logistics partners ensures that customer orders are prioritized in extreme circumstances.

Customer Communication and Brand Protection

Transparent Tracking: Chinadivision's system provides consumers with real-time logistics status notifications, proactively managing expectations and reducing complaints. Compensation Mechanism Design: Offer coupons or gifts for delayed orders to maintain customer loyalty.

Trust Chinadivision: Your Reliable Order Fulfillment Partner

At Chinadivision, we understand the impact of logistics uncertainty on business. Through our global supply chain network and intelligent logistics system, customers can enjoy the following advantages:

Multi-channel Logistics Solutions: We work closely with major logistics providers to switch to optimal delivery channels at any time, minimizing the impact of unexpected events such as strikes and weather.

Integrated Warehousing and Distribution: We have warehousing centers in North America and Europe, enabling local delivery, shortening delivery times and reducing costs.

Full-Process Visibility: From order processing to delivery tracking, we provide real-time data to help you stay informed every step of the way.

Peak Season Support: We plan resources in advance to ensure efficient and stable order fulfillment during peak shopping seasons.

The Canada Post strike is another reminder that every link in the fulfillment chain must be resilient to risk. Partnering with Chinadivision is more than just choosing a fulfillment provider; it's about building a solid logistics defense for your brand. If you are looking for a more stable and intelligent order fulfillment solution, please contact us and let Chinadivision be your strong backing for peak season fulfillment.