Canada’s postal network ground to a halt on September 25, 2025, after the Canadian Union of Postal Workers (CUPW) launched a national strike, suspending mail and parcel processing and canceling scheduled pickups nationwide. Service guarantees have been lifted for items already in the network, with Canada Post warning that any outage will ripple well past the end of the walkout as facilities work down backlogs.
The immediate trigger: Ottawa directed Canada Post to begin a sweeping transformation aimed at stanching mounting losses. The government lifted moratoriums to allow conversions of roughly 4 million remaining door‑to‑door addresses to community mailboxes and to “right‑size” rural post office locations, and it authorized slower ground transport for non‑urgent letters—changes officials say could save about C$400 million annually while addressing a system that is losing roughly C$10 million a day. The statement also flagged cumulative losses exceeding C$5 billion since 2018 and a record C$407 million quarterly deficit earlier this year.
CUPW called the reforms an attack on public postal service and escalated to a national strike immediately after the announcement, saying the changes will cut jobs and degrade service. Union materials stress members remain committed to moving socio‑economic cheques during the disruption, a carve‑out Canada Post also confirmed.
Business groups moved quickly to warn of broader fallout. The Canadian Federation of Independent Business said the strike and prolonged uncertainty are hitting small firms at the worst possible time and urged the government to ensure service continuity. Ontario’s Chamber of Commerce similarly pressed for an immediate resolution, noting that many communities have few viable alternatives for invoicing, payments and last‑mile deliveries.
Why this matters for trucking: with Canada Post not accepting new items and linehaul links into its plants idled, parcels and light freight are spilling toward private networks. Expect short‑haul and linehaul imbalances as integrators redirect volume to ground lanes, more direct‑to‑carrier “injections” from large merchants, and tighter capacity on popular cross‑border corridors into the U.S. Even once the strike ends, Canada Post says it will take time to normalize operations—meaning private carriers and regional LTLs could be moving elevated overflow well into October.
One early operational wrinkle: Purolator—often a pressure‑release valve when Canada Post is jammed—ended its retail drop‑off partnership with Michaels stores effective September 26. That trims a set of convenient consumer access points just as volumes migrate to private networks, a factor shippers should account for when steering returns and pickup traffic.
What shippers and carriers can do now
– Rebalance networks: pre‑allocate overflow to multiple carriers and regional couriers, and build lane‑level thresholds that automatically cap volumes to avoid tender rejections late in the day.
– Inject smarter: where feasible, consolidate parcel freight for direct injection into carrier sort hubs, reducing end‑to‑end cycle times during elevated volumes.
– Prioritize cross‑border readiness: front‑load customs documentation and harmonized codes, and leverage brokers for pre‑clearance to keep U.S.-bound trucks moving.
– Protect the customer experience: extend delivery ETAs and returns windows at checkout; proactively message rural customers who may face fewer drop‑off points.
– Budget for volatility: set contingency funds for peak‑season surcharges and spot moves on tight lanes; monitor dwell at city terminals and plan driver schedules accordingly.
What’s next: federal mediators are engaged as both sides face pressure to limit damage ahead of holiday shipping. Reporting indicates business groups are pushing for renewed bargaining, and union officials have signaled they expect new employer proposals in the coming days. Regardless of the bargaining pace, Canada Post’s own guidance suggests shippers should prepare for a long tail on backlogs even after a deal, keeping overflow freight in private networks into the early weeks of Q4.
Sources: FreightWaves, Public Services and Procurement Canada, Canada Post, Reuters, Associated Press, Canadian Federation of Independent Business, Ontario Chamber of Commerce, CUPW, Purolator
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