Canada Post to launch weekend parcel delivery by year’s end

Canada Post intends to begin delivering parcels on weekends in Toronto, Montreal, and Ottawa before the end of the year. According to FreightWaves, the state-owned postal service is implementing this change as part of a broader effort to modernize operations and capture a larger share of the electronic retail market. The company recently reported a pre-tax loss of $199.7 million for the second quarter, which represents a reduction in losses by one-third compared to previous figures.

A recently ratified five-year labor agreement with the Canadian Union of Postal Workers has provided the stability necessary for these operational changes. The new contract, which runs through early 2029, follows years of volatile negotiations and strikes that previously drove e-commerce shippers to private competitors. With labor certainty, the carrier is now introducing flexible staffing and vehicle sharing while streamlining its letter mail divisions to improve overall productivity.

The financial recovery plan involves significant changes to residential service, including the conversion of 621,000 addresses from home delivery to centralized community mailboxes by 2027. This transition is part of a larger initiative to move four million addresses to community boxes over several years. Management is also prioritizing digital growth through box-free returns, expanded home pickup services for 8.6 million households, and the launch of a new online marketplace for small businesses.

Despite a 20.7% increase in parcel revenue during the second quarter, Canada Post continues to face challenges in its traditional mail business. Letter mail volumes dropped 9.2% as more citizens shift toward digital communication methods. Since 2018, the organization has recorded total losses of $4.76 billion, leading to a reliance on government support and a strategic pivot toward becoming a parcel-focused delivery provider to ensure future profitability.