Postal woes: Calgary business owner questions 'ridiculous' shipping costs
It's a problem that doesn't seem to be going away any time soon, and some Canadian producers are fed up.
Parcel shipping costs have drastically jumped over the last few years and it's eating into business profit margins.
Calgary clothing company Local Laundry is rethinking its shipping model thanks to what its owner calls "exorbitant" fees.
"It costs between $16 and $24 to ship within the country," Dustin Paisley told CTV News. "But I can ship a package to New York or somewhere in the States for almost half that price."
The costs are especially problematic for the small local business, which has been promising its customers $10 shipping for years. That promise is currently being rethought.
"What that increase in shipping cost does is just eats more into our margin, which is already not the highest," Paisley said.
The Calgarian recently went viral on social media app TikTok for a video in which he complains about the rates. He says the thousands of comments he has gotten from people agreeing with his statements show many Canadians are also upset with the current shipping model.
"Unfortunately, there are not a ton of options out there, so you're stuck with the rates and options you're given," Paisley said.
Canada Post turned down a CTV News interview request.
A statement from spokesperson Phil Legault reads, in part "Parcel rates are non-regulated and fully competitive within the industry. Canada Post determines shipping rates based on several factors, including the origin and destination, which also consider population densities."
The statement didn't address recent upticks in price, but shipping expert and Jori Logistics worker Sam Woods says there's a reason why it's been costing Canadians more to send parcels.
"The trucking fee costs and all those inland fees are going up significantly," he said. "We've seen that fuel surcharge percentage go up three, four times what it was in this period last year."
Woods suggests smaller businesses look to larger volume shippers inside Canada to facilitate orders. He believes using air shipping -- not land -- could save some money.
He also pointed out most companies, like Canada Post, are driven by profit. A lack of competitiveness in the Canadian market leaves consumers and small producers with few options.
"To the average shipper, that doesn't have much buying power to negotiate many rates, they are really at the whim of the market," Woods said.
"Given our dual mandates to remain financially self-sustaining and to provide affordable postal service for Canadians, we work hard to maintain reasonable, competitive prices," the Canada Post statement reads.
Paisley believes it's not sustainable.
"I'm looking for other options," he said. "It's ridiculous right now."
CTVNews.ca Top Stories
BREAKING Monthly earnings rise, payroll employment falls: jobs report
The number of vacant jobs in Canada increased in February, while monthly payroll employment decreased in food services, manufacturing, and retail trade, among other sectors.
Doctors say capital gains tax changes will jeopardize their retirement. Is that true?
The Canadian Medical Association asserts the Liberals' proposed changes to capital gains taxation will put doctors' retirement savings in jeopardy, but some financial experts insist incorporated professionals are not as doomed as they say they are.
Remains from a mother-daughter cold case were found nearly 24 years later, after a deathbed confession from the suspect
A West Virginia father is getting some sense of closure after authorities found the remains of his young daughter and her mother following a deathbed confession from the man believed to have fatally shot them nearly two decades ago.
Something in the water? Canadian family latest to spot elusive 'Loch Ness Monster'
For centuries, people have wondered what, if anything, might be lurking beneath the surface of Loch Ness in Scotland. When Canadian couple Parry Malm and Shannon Wiseman visited the Scottish highlands earlier this month with their two children, they didn’t expect to become part of the mystery.
What do weight loss drugs mean for a diet industry built on eating less and exercising more?
Recent injected drugs like Wegovy and its predecessor, the diabetes medication Ozempic, are reshaping the health and fitness industries.
2 military horses that broke free and ran loose across London are in serious condition
Two military horses that bolted and ran miles through the streets of London after being spooked by construction noise and tossing their riders were in a serious condition and required operations, a British government official said Thursday.
'It was instant karma': Viral video captures failed theft attempt in Nanaimo, B.C.
Mounties in Nanaimo, B.C., say two late-night revellers are lucky their allegedly drunken antics weren't reported to police after security cameras captured the men trying to steal a heavy sign from a downtown business.
Fair in Ontario, flurries in Labrador: Weather systems make for an erratic spring
It's no secret that spring can be a tumultuous time for Canadian weather, and as an unseasonably mild El Nino winter gives way to summer, there's bound to be a few swings in temperature that seem out of the ordinary. From Ontario to the Atlantic, though, this week is about to feel a little erratic.
He replaced Mickey Mantle. Now baseball's oldest living major leaguer is turning 100
The oldest living former major leaguer, Art Schallock turns 100 on Thursday and is being celebrated in the Bay Area and beyond as the milestone approaches.