Canada Post Reports Quarterly Loss Exceeding $300M as Strike Enters Second Week and Competitors Enter the Fray
Canada Post experienced a significant loss of hundreds of millions of dollars in the last quarter, largely due to its decreasing share of the parcels market and an ongoing strike affecting its financial performance.
In the third quarter, the Crown corporation reported a pre-tax loss of $315 million, surpassing the $290 million loss from the previous year.
Canada Post attributed the loss to the competitive e-commerce delivery market, which led to a 10% decrease in package volumes.
Despite declining letter mail volumes, a slight increase in revenue occurred due to a stamp price increase.
The financial outlook for Canada Post indicates another significant loss in 2024, marking the seventh consecutive year in the red.
These challenges come at a time when Canada Post is facing a shutdown of operations due to a strike involving over 55,000 workers nationwide since November 15.
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The ongoing strike has caused disruptions in mail deliveries, with some exceptions for government benefit cheques.
Other shipping companies have seen increased business due to the strike impact on Canada Post’s operations.
Shippers are experiencing high volumes, with companies like Purolator and FedEx managing increased demand through contingency plans.
Small businesses face challenges as they seek alternative shipping solutions to fulfill customer orders quickly amid the strike.
Customers may experience delays, particularly those shipping to PO boxes and rural areas, while online purchases from major corporations like Walmart Canada are minimally affected.
Canada Post has been incurring losses since 2018, with declining letter volumes and increased competition in the parcel market.
The postal service and the union have differing views on how to enhance parcel deliveries and boost revenue.
Competitors have seized a significant portion of the parcel market share, impacting Canada Post’s financial performance.
