Consultant’s Insight: Expanding express services in Canada

UPS last week announced it would expand its Saturday residential standard service delivery in major Canadian cities. The service is currently available in the greater Toronto area and will be available by March in Montreal; Laval, Quebec; Calgary, Alberta; and greater Vancouver, British Columbia. [caption id="attachment_76185" align="alignright" width="298"] Cathy Roberson, Cargo Facts Consulting senior consultant and Air Cargo Next columnist[/caption] “Canadian and U.S. businesses have a great new way to create growth by serving customers with our Saturday residential delivery service,” UPS Canada President Stephanie Dexter said in a Feb. 6 release from the company. “UPS is helping businesses meet customer expectations for timely, convenient deliveries. We are excited to help them grow and compete in today’s market.” UPS will offer weekend residential ground delivery from the United States and within Canada at no additional cost, according to the release. Research from the Angus Reid Institute shows that 51% of Canadians surveyed expect online purchases to be delivered within one to two days, even over the weekend. In addition, 74% of Canadians want delivery services to operate on weekends as well as during the week. UPS in Canada UPS has been in Canada since 1975 and operates hubs in: Mirable, Quebec; Hamilton, Ontario; Ottawa, Ontario; Toronto; Calgary, Alberta; Vancouver, British Columbia; and Winnipeg, Manitoba. UPS is Canada’s second-largest parcel carrier, behind Canada Post , according to Pitney Bowes ’ 2023 shipping index. UPS shipped 240 million parcels in 2022 and Canada Post shipped 241 million. FedEx shipped 104 million parcels. UPS and Canada Post parcel volumes each accounted for 18% of the market in 2022, according to Pitney Bowes. UPS’ market share by volume grew 6 percentage points from 2020 to 2022, landing at 18%. However, Canada Post’s market share by volume has declined 3 percentage points in the same time period, also landing at 18%. UPS generated the highest parcel shipping revenue at $3.7 billion in 2022, followed by Canada Post with $2.5 billion and Canadian courier Purolator with $2 billion. UPS Canada last year disclosed an extended data breach involving an oversight in its online package tracking system, which was actively abused from February 2022 to April 2023. UPS notified individuals whose information may have been affected to ensure transparency and awareness and has now implemented measures designed to restrict access to this sensitive data. FedEx expands Canada ops as well FedEx has also made a big push into Canada and FedEx Express Canada took delivery of 50 BrightDrop electric vans last year. “The introduction of BrightDrop’s electric vans into the FedEx fleet in Canada is an important step in the company’s goal to transform its entire parcel pickup and delivery fleet to all-electric, zero tailpipe emissions vehicles by 2040,” the company said in a June 2023 release. FedEx also announced last June that it would merge its contractor-based Ground delivery operations in Canada into its company-operated Express unit and convert contractors into employees. Combining the Canadian delivery operations is expected to save the company more than $100 million upon completion in fiscal 2025, Chief Executive Raj Subramaniam said on a December earnings call with investors. Register here for Air Cargo Next 's free webinar, “The Role of Drones in the Future of Air Cargo,” on Tuesday, March 26, at 11 a.m. ET.

Consultant’s Insight: Expanding express services in Canada

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