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Canada Post forecasts more losses despite boom in parcel deliveries

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  • Apr 22nd, 2019 4:22 pm
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Deal Expert
Jan 7, 2002
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Waterloo, ON

Canada Post forecasts more losses despite boom in parcel deliveries

Slow and continuing to slowly get slower as CP keeps slowly losing money: Canada Post forecasts more losses despite boom in parcel deliveries
Parcel delivery is booming, but Canada Post says it will struggle to meet its government-mandated goal of self-sustainability in coming years due to an ongoing decline in letter mail, higher employee costs and billions in needed capital spending.

In a corporate forecast quietly tabled in Parliament, the Crown corporation says it is expecting to achieve “modest” profits of between $10 million and $125 million from 2019 through to 2023 — but those will be driven primarily by its Purolator subsidiary, while the base Canada Post segment will post losses.

“Although Canada Post is in a financially viable position today, the forecasted growth in parcels revenue will not be enough for the Canada Post segment to achieve profitability throughout this plan’s period, nor will it be enough to make Canada Post financially self-sustaining in the long term,” the document says.
Either that or parcel post rates will have to keep going higher and higher.
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Jr. Member
Mar 20, 2011
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Langley, BC
I just don't understand how Canada Post can literally cut every single corner - community mailboxes, no saturday delivery, postal workers using their own cars, no parcel tracking as standard, etc. - and still have all these losses. Where is that money being siphoned off to? The whole organization needs massive reform.
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Jan 10, 2004
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CanadaJimmy wrote:
Apr 17th, 2019 12:23 pm
I just don't understand how Canada Post can literally cut every single corner - community mailboxes, no saturday delivery, postal workers using their own cars, no parcel tracking as standard, etc. - and still have all these losses. Where is that money being siphoned off to? The whole organization needs massive reform.
I wonder the same thing - they already have the ideal infrastructure for package delivery, relatively convenient locations if the parcel can;t fit in the superbox or left without signature. It's not like parcel shipping is super cheap.

I have heard some interesting stories from people who work there - there's definitely some issues in they way things are run. But since online shopping is increasing, you'd think they could figure something out.
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Aug 5, 2006
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CanadaJimmy wrote:
Apr 17th, 2019 12:23 pm
I just don't understand how Canada Post can literally cut every single corner - community mailboxes, no saturday delivery, postal workers using their own cars, no parcel tracking as standard, etc. - and still have all these losses. Where is that money being siphoned off to? The whole organization needs massive reform.
If CP was privatized without unions is there any doubt they would be more profitable and not dependent on govmt handouts?
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Sep 19, 2004
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scoper wrote:
Apr 17th, 2019 8:44 pm
If CP was privatized without unions is there any doubt they would be more profitable and not dependent on govmt handouts?
To the contrary, Canada Post by the very mandate must be self sustainable, it doesn't depend on taxpayers' money.

Image how much you pay to ship a parcel to remote area, fedex ups or alike charge a hefty rate or they don't serve at all. Many services are at discounted rates comparing with competitors because they are considered essential services to all Canadian.
Sr. Member
Jun 25, 2010
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scoper wrote:
Apr 17th, 2019 8:44 pm
If CP was privatized without unions is there any doubt they would be more profitable and not dependent on govmt handouts?
Sorry to bust your bubble. Cpc doesn’t operate on govt handout.its the opposite. The govt takes dividend from the profits.
Deal Expert
Aug 2, 2001
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CanadaJimmy wrote:
Apr 17th, 2019 12:23 pm
I just don't understand how Canada Post can literally cut every single corner - community mailboxes, no saturday delivery, postal workers using their own cars, no parcel tracking as standard, etc. - and still have all these losses. Where is that money being siphoned off to? The whole organization needs massive reform.
Canada Post is in a position where they have to provide a service (lettermail) to all parts of Canada for the same rate. It's the same cost to go from Toronto to Ottawa and Toronto to a town in Nunavut. The goal is that they can have other mail to help make up the volume they need to turn a profit, such as ad mail, but it's still expensive to provide 5 day a week delivery to all households.

They are also likely prevented from making more reasonable cost savings changes - such as 2-3 delivery days per week for a household as the volume has dropped.

If you are actually interested look through their annual reports - here is an overview:
https://www.canadapost.ca/assets/pdf/ab ... iew_en.pdf
Their website will also have the full report.
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Jan 9, 2011
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CanadaJimmy wrote:
Apr 17th, 2019 12:23 pm
I just don't understand how Canada Post can literally cut every single corner - community mailboxes, no saturday delivery, postal workers using their own cars, no parcel tracking as standard, etc. - and still have all these losses. Where is that money being siphoned off to? The whole organization needs massive reform.
Flat mail was the money maker. 90¢ each and think of how much little space each one takes up. Mostly gone now, despite me having sent a snail mail just today. Packages are expensive to deliver. No surprise Canada Post is losing money.
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Feb 16, 2018
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Kiraly wrote:
Apr 17th, 2019 10:15 pm
Flat mail was the money maker. 90¢ each and think of how much little space each one takes up. Mostly gone now, despite me having sent a snail mail just today. Packages are expensive to deliver. No surprise Canada Post is losing money.
Fedex and UPS seem to be doing fine with this method, dealing with parcel deliveries. so does Purolater which is owned by Canada post. Raise the rates of mail delivery. There is hardly a need for mail delivery these days with email. Triple or Quadruple the cost. Those that want or need regular mail can still get it. All bills can be sent online. For the elderly that don't like computers, learn. or have a family member help you

Sky high wages for postal workers is also to blame. Unions have shot themselves in the foot going on strike asking for better wages and more job security in an industry that is going to be virtually obsolete soon, like newspapers and magazines.
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Sep 19, 2004
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HghSsociety wrote:
Apr 18th, 2019 7:22 am
Fedex and UPS seem to be doing fine with this method, dealing with parcel deliveries. so does Purolater which is owned by Canada post. Raise the rates of mail delivery. There is hardly a need for mail delivery these days with email. Triple or Quadruple the cost. Those that want or need regular mail can still get it. All bills can be sent online. For the elderly that don't like computers, learn. or have a family member help you

Sky high wages for postal workers is also to blame. Unions have shot themselves in the foot going on strike asking for better wages and more job security in an industry that is going to be virtually obsolete soon, like newspapers and magazines.
Sky high wages for postie?

If you had ever worked as deliverye agent for just one day, I bet you might think about whether it is a fairly paid job.
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Mar 20, 2016
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sunvv wrote:
Apr 17th, 2019 9:26 pm
To the contrary, Canada Post by the very mandate must be self sustainable, it doesn't depend on taxpayers' money.

Image how much you pay to ship a parcel to remote area, fedex ups or alike charge a hefty rate or they don't serve at all. Many services are at discounted rates comparing with competitors because they are considered essential services to all Canadian.
Just an anecdote for this one, recently was trying to ship a small box to northern BC.
Fedex: $150 for 3 days estimated delivery (which probably gets handed off to CP).
Canada post: $19 for 2 day expedited.

Don't get me wrong their regular prices I think are high (especially within a major city, the price is essentially the same which really sucks). But shipping to a remote area is ridiculously cheap.
Deal Guru
Jan 27, 2006
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Vancouver, BC
I believe part of the problem may be the packages themselves. Large retailers like Amazon get a bulk discount from couriers who try to win the contract as such they sometimes cut delivery charges to the bone.

So, if you combine these large retailers with the fact that CP charges one of the lowest rates to ship to far off locations in Canada, CP might be subsidizing the large retailers to ship to these out of the way places. To make things worse, the logistics to ship to these small places may have been based on previous small volumes to these places (after all, how much stuff would be shipped to a small town of 500, for example, in the past). If you fast forward to today, the volumes to these locations might be large enough that the previous method of transport may be too small to get everything there within the service agreement so an additional trip is required - ie. before you have one truck for delivery but now you need two.

There's a reason why Fedex charges so much to deliver to these small places...
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Feb 16, 2018
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sunvv wrote:
Apr 18th, 2019 1:07 pm
Sky high wages for postie?

If you had ever worked as deliverye agent for just one day, I bet you might think about whether it is a fairly paid job.
Don't postal workers get something like $20-25/hour? plus pension & benefits? All for something that requires no skills and to walk and or drive all day?

If that's the case then yes, I consider that sky high wages.
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Sep 28, 2017
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sunvv wrote:
Apr 17th, 2019 9:26 pm
To the contrary, Canada Post by the very mandate must be self sustainable, it doesn't depend on taxpayers' money.

Image how much you pay to ship a parcel to remote area, fedex ups or alike charge a hefty rate or they don't serve at all. Many services are at discounted rates comparing with competitors because they are considered essential services to all Canadian.
but here is the thing with that.... this is OUR main mail delivery service. UPS, fedex and the such are a secondary means.... CP is supposed to be our mail system. and it's being eaten alive by greedy corporate big wigs and their massive pay checks. if you force them to take a regular wage like everyone else, get that stupid union out of there as well then it would be a much better situation. but they don't and as a result they make us suffer to make a point.

i seriously hope CP tanks and the government says nope can't help you. it will be another canadian company to die because it was run by the greedy instead of people with logic and real goals.
no matter where you go, there you are.
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Apr 30, 2003
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Toronto
HghSsociety wrote:
Apr 18th, 2019 7:40 pm
Don't postal workers get something like $20-25/hour? plus pension & benefits? All for something that requires no skills and to walk and or drive all day?

If that's the case then yes, I consider that sky high wages.
You don't need to be a rocket scientist to be a delivery agent.

But there are some skills set required. Not everyone can be a delivery agent. Many ppl quit because they can't handle the job and workload.

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