Businesses Small and Medium-Sized brace themselves for another potential Canada Post work stoppage
TORONTO – Small businesses, shipping firms, and e-commerce companies are bracing for potential chaos as a Canada Post strike looms, potentially as early as next week. This looming disruption could snarl supply chains, cause millions of packages to pile up, and freeze billions in sales.
Mom-and-pop shops and online businesses are scrambling to find alternate methods to send their shipments to consumers and clients. However, many are already feeling the burn.
In the picturesque province of Cape Breton, N.S., yarn retailer Tracy Hubbard is crunching the numbers for her bottom line. If she's forced to shift her shipments to costlier large courier services, it won't just digest her profits, it might starve them. That's because many small businesses, especially those serving rural areas, depend heavily on Canada Post for affordable parcel delivery.
During the last strike in 2021, a horde of last-mile delivery startups and shipping platforms saw their volumes skyrocket. But many of these companies were caught off guard, unable to handle the surge in demand.
Jarrett Stewart, the man running commercial operations at delivery startup GoBolt, is preparing for a fresh wave of customers. But with the big couriers that GoBolt relies on, such as FedEx and UPS, potentially capping freight volumes, it could mean smooth sailing for the startup but a storm of headaches.
Alternative shipping company Stallion Express fears that a strike would stall billions in e-commerce revenue, leaving rural shoppers clamoring for essential goods and hanging in the balance.
This report, originally released May 16, 2025, paints a grim picture for small businesses, shipping firms, and e-commerce industries in Canada.
Key Insights
- A potential Canada Post strike could lead to significant revenue losses, increased shipping expenses, and frustrated customers for small businesses and e-commerce companies, many of which rely heavily on postal services in rural areas[1].
- Last-mile and alternative courier services may face a surge in demand, but many are ill-prepared to handle the increased volume[1].
- Disruptions in Canada Post services could potentially cost small and medium-sized businesses up to $1 billion in lost sales and additional operational expenses[5].
- Delays in parcel delivery could lead to dissatisfied customers and strained business-consumer relationships[5].
- E-commerce and retail businesses are advised to adopt alternative shipping solutions, multi-carrier strategies, and inventory buffering to mitigate the impact of a postal strike[5][4].
In short, a Canada Post strike would bring chaos, stressed supply chains, and hefty financial losses, especially to small businesses, shipping companies, and e-commerce enterprises that have built their operations on timely parcel delivery[1][5].
- Small businesses, particularly those in rural areas, may struggle if they have to shift from Canada Post to more expensive courier services, potentially causing profit loss and starvation.
- During a Canada Post strike, alternative shipping companies like GoBolt may experience increased demand, but face challenges with freight volumes from their larger partner companies.
- A Canada Post strike could stall billions in e-commerce revenue, leaving rural shoppers without essential goods.
- To cope with potential disruptions, e-commerce and retail businesses are advised to adopt alternative shipping solutions, multi-carrier strategies, and buffer their inventory to minimize the impact of a postal strike.
