Purolator, UPS pause shipments from couriers amid backlog from Canada Post strike

Amid an influx of packages that would normally be sent through Canada Post, Purolator and UPS have paused shipments from some courier companies in order to catch up. 

Purolator told CBC News on Thursday that severe weather and a surge in package volumes prompted it to freeze service for some partners, citing the need to "prioritize critical shipments."

Couriers such as eShipper act as middlemen between smaller e-commerce businesses and large carriers. But now eShipper is among the outfits temporarily barred from sending packages through UPS and the Canada Post-owned Purolator.

In a notice sent to clients on Thursday and obtained by CBC News, eShipper stated that "no shipments will be processed or moved by these carriers" for 48 hours, starting Wednesday. The update came after eShipper informed clients on Wednesday that Purolator was considering a daily limit of 1,500 shipments. 

In a statement Friday, Purolator said that the timeframe didn't come from it and that "this is a temporary measure that will be removed as soon as possible." UPS did not respond to requests for comment. 

Imtiaz Kermali, vice president of sales and marketing at eShipper, told CBC News that the platform works with over 25,000 Canadian businesses, connecting them to various shipping options that they can offer to customers when selling products online. 

UPS and Purolator are some of their primary carriers.  

"It's very, very important that we help them get back to normal," he said. "After Monday, it's a slowdown to a certain extent, and then the next two weeks going into Christmas are even more heavier."

FedEx is also experiencing "increased volume demands" amid the ongoing Canada Post strike, spokesperson James Anderson told CBC News in a statement Friday. 

To manage this, "a temporary limit of five packages per drop-off has been introduced at FedEx retail locations," he said. 

Canada Post said Thursday it was reviewing new counter-proposals submitted by the union representing more than 55,000 postal employees, who walked off the job three weeks ago.

Workers are striking due to conflicts over wages, which haven't kept up with inflation, and disagreements over how to staff an expansion into weekend deliveries.

Canada Post wants to hire part-time workers at a lower rate for weekends — creating a lower class of workers with less job protection and potentially cutting into the job security of existing full-time workers who could staff weekend shifts, according to the union.

Clarence Woudsma, an associate professor at the University of Waterloo and a shipping logistics expert, said it makes sense that Purolator and UPS are limiting some shipments through third-party platforms.