Canada Post - Hard to believe, but ....


the clerk in my local post office tells me she has heard that there will be 'significant price increases' as of January 2005. The rumour she heard referred to letter post, US and Domestic - she had no information on small packet or expedited.

Anyone heard anything?
Message 1 of 38
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Canada Post - Hard to believe, but ....


Okay, this from the Canada Gazette:


Vol. 138, No. 26 — June 26, 2004

Regulations Amending the International Letter-post Items Regulations

Statutory authority

Canada Post Corporation Act

Sponsoring agency

Canada Post Corporation

REGULATORY IMPACT
ANALYSIS STATEMENT

Description

These proposed amendments to Canada Post Corporation (Canada Post) regulations, effective January 17, 2005, will increase the price of postage for letter-post items destined to the United States and to other international destinations.

Proposed price adjustments include the following, among others:

— a $0.05 increase to $0.85 (6.3 percent) for letters, cards and postcards up to 30 g destined to the United States. Other prices for this destination will also be adjusted, with an average overall increase of 4.2 percent; and

— a $0.05 increase to $1.45 (3.6 percent) for letters, cards and postcards up to 30 g for other foreign destinations. Other prices for these destinations will also be adjusted, with an average overall increase of 3.2 percent.

Canada Post is facing inflationary pressure from a number of sources, and the proposed price adjustments take into consideration increased operating costs as measured by the inflation forecast.

One such source is terminal dues, which are a pricing mechanism that allows the postal administration receiving mail for delivery to collect for the cost of delivery from the postal administration sending the mail (in this case Canada Post). It is expected that terminal dues to the United States will increase by 5 percent while dues to other international destinations will increase by approximately 4.7 percent by 2005.

Additionally, many courier companies have implemented significant fuel price surcharges based upon price fluctuations. As Canada Post cannot implement a fuel surcharge for regulated letter-post products, it remains exposed to fluctuations in the price of fuel and must recover the increased cost.

Even with the proposed price increases, Canada Post's international outbound basic rate will continue to be one of the lowest among all major industrialized countries.

The proposed amendments require consequential, minor amendments to the Special Services and Fees Regulations and to the Materials for the Use of the Blind Regulations.

Alternatives

With regard to the proposed rate action, all other alternatives were considered inappropriate, as the rate action is part of the 2004 to 2008 Corporate Plan approved by the Governor in Council. The Plan seeks a balanced approach to control costs, improve productivity and efficiency, deliver financial performance and ensure accessibility and reliability.

Benefits and costs

It is anticipated that the amendments will not have a serious impact on postal users or on market share. The new rates will directly contribute to Canada Post's financial integrity and its ability to make future investments to maintain accessible, affordable and efficient service. Generally, consumers send only a very small number of U.S. and international mail items each year compared to domestic lettermail.

Anticipated impact

Depending on the products they use, the majority of customers will experience an overall weighted average price increase of 3.8 percent for U.S.A. and International Letter-post, while a small number of customers will see higher increases.

Consultation

As required by the Canada Post Corporation Act, these amendments are being published in the Canada Gazette, Part I, thereby initiating a formal 60-day period in which interested persons can make representations to the Minister responsible for the Canada Post Corporation. All such representations should cite the Canada Gazette, Part I, and the date of publication of this notice.

Compliance and enforcement

These Regulations are enforced by Canada Post under the Canada Post Corporation Act. No increase in the cost of enforcement is expected as a result of the proposed changes.

Contact

Mrs. Manon Tardif, General Manager, Regulatory Affairs, Canada Post Corporation, 2701 Riverside Drive, Suite N0940, Ottawa, Ontario K1A 0B1, (613) 734-8483 (telephone), (613) 734-7207 (facsimile).

PROPOSED REGULATORY TEXT

Notice is hereby given, pursuant to subsection 20(1) of the Canada Post Corporation Act, that the Canada Post Corporation, pursuant to subsection 19(1) (see footnote a) of that Act, proposes to make the annexed Regulations Amending the International Letter-post Items Regulations.

Interested persons may make representations with respect to the proposed Regulations within 60 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to the Minister responsible for the Canada Post Corporation, 555 Mackenzie Avenue, 7th Floor, Ottawa, Ontario, K1A 0L5.

CANADA POST CORPORATION

REGULATIONS AMENDING THE INTERNATIONAL LETTER-POST ITEMS REGULATIONS

AMENDMENTS

1. Paragraph 7.1(1)(a) of the International Letter-post Items Regulations (see footnote 1) is replaced by the following:

(a) a completed green CN22 label; or

2. Schedule I to the Regulations is repealed.

3. Item 1 of Schedule IV to the Regulations in column II is replaced by the following:


Item Column II

Rate per item ($)
1.(a)(i) 30 g or less
more than 30 g but not
more than 50 g 0.85

1.00
(ii) 100 g or less
more than 100 g but not
more than 200 g
more than 200 g but not
more than 500 g 1.70

2.90

5.80
(b)(i) 30 g or less
more than 30 g but not
more than 50 g 1.45

2.00
(ii) 100 g or less
more than 100 g but not
more than 200 g
more than 200 g but not
more than 500 g 3.40

5.80

11.60

COMING INTO FORCE

4. These Regulations come into force on January 17, 2005.

[26-1-o]

Footnote a

S.C. 1992, c. 1, s. 34

Footnote 1

SOR/83-807

 

NOTICE:
The format of the electronic version of this issue of the Canada Gazette was modified in order to be compatible with hypertext language (HTML). Its content is very similar except for the footnotes, the symbols and the tables.


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Updated: 2004-06-25 1 800 O-Canada
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Message 2 of 38
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Canada Post - Hard to believe, but ....

shooger
Community Member
Disturbing. I thought the 20c increase from 60c to 80c this year would have kept them happy until 2030 or so. Another raise? And exactly how does this "increase efficiency"? In my understanding of the word, to do that they would have to keep prices the SAME, and simply cut off some fat. By keeping the fat and raising prices, I think that's what I would call "decreasing efficiency". But I'm not an English major so I'll leave that to them.

Almost 90% of my auctions are sent by lettermail to the USA with an 80 cent stamp. So this is quite a substancial price increase for me.
Message 3 of 38
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Canada Post - Hard to believe, but ....

auctiondropnship
Community Member
I read this and I getted so ticked ,

You have Canada Post staff working so solow at terminals
You have staff sleeping at work
You have a flue Charge that does not go down but increase

I have pulled away from Canada Post as much as possible
I ship USPS as much as I can
Canadian Freight
Grey Hound
Canada Post use to be my first choice for shipping . They are getting to the bottom of my list

They are such a mixed up company. I mean when you can write on a manifest 200g . When the item weight is 23kg and when you get billed it's $3.25

They have no checks and balances to prevent waste and mistakes
.
Auction Drop N Ship
Drop It, Sell It, Ship It

Canada's Ebay Drop Off Store
Message 4 of 38
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Canada Post - Hard to believe, but ....

llee2
Community Member
Is CP trying to blame this hike on fuel surcharges again? For US and international lettermail where CP doesn't even do the actual delivery? And isn't 1st class lettermail sent by air instead of ground anyways?

Sad.

Message 5 of 38
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Canada Post - Hard to believe, but ....

"Is CP trying to blame this hike on fuel surcharges again?"

Yes! In part at least (read the notice posted above)

"For US and international lettermail where CP doesn't even do the actual delivery?"

Yes! That's right they don't do the delivery they pay the country that does do the delivery and they claim these charges will rise. (read the notice above)

"And isn't 1st class lettermail sent by air instead of ground anyways?"

Yes! Do you think planes are powered with water?

I don't like postage increases any more than the next guy, small increases usually end up getting absorbed by the seller so it's a straight hit to the bottom line similar to the currency loses of recent years (if you list in US$). I do hear a lot of bitching and moaning about Canada Post this has not been my experience at least not as it relates to Lettermail and Small Packets, over 8,000 packages sent, 2 "lost" (according to buyers?), 2 damaged (1 due to insufficient packing on my part). Delivery times to most international destinations I would rate as "good to excellent", to the USA "erratic".

I'm not a 100% happy customer but reasonably close. In spite of this I'm not suggesting we blindly and silently accept price increases and I'm also aware the the post offices of some other countries DO provide better service than Canada Post.

Ben




"What else could I do? I had no trade so I became a peddler" - Lazarus Greenberg 1915
- answering Trolls is voluntary, my policy is not to participate.
Message 6 of 38
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Canada Post - Hard to believe, but ....

shooger
Community Member
They put their prices up in January, and then they put on a fuel surcharge, and they just announced the fuel surcharge is going up. Now they're raising their prices again, saying that the fuel charges went up so they have to raise prices. Huh?!?

I wonder if now that fuel prices are cooling off again, if they'll drop the fuel surcharge?

"Delivery times to most international destinations I would rate as good to excellent"

That's because Canada Post takes your money and package and hands the package and some of the money over to the country you're delivering to. It's the destination country which does the delivery.
Message 7 of 38
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Canada Post - Hard to believe, but ....

llee2
Community Member
recped,

My questions were in part, rhetorical. Fuel surcharges were implemented by Canada Post for their GROUND services only. They are not applicable to air services, which 1st class lettermail is. But hey, in your world of non-jet-fuelled airplanes maybe they are.
Message 8 of 38
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Canada Post - Hard to believe, but ....

"Fuel surcharges were implemented by Canada Post for their GROUND services only"

Xpresspost carries a fuel surcharge..it's an AIR service?

Ben



"What else could I do? I had no trade so I became a peddler" - Lazarus Greenberg 1915
- answering Trolls is voluntary, my policy is not to participate.
Message 9 of 38
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Canada Post - Hard to believe, but ....

shoplineca
Community Member
Fuel surcharges is simply a method that agencies which require Governmental approval for increases are able to increase their rates and bypass the approval process.

If CP didnt have to obtain government approval for a increase in postage rates, you would have higher postage rates and no fuel surcharges.

If Bell Canada could justify charging a fuel surchage, you would see one on your next phone bill.

Example in point, CP introduced fuel surcharges early spring 2003 claiming high cost of fuel in deliverying mail in late 2002 at a point when the price of fuel was decreasing. Thereforefore, a fuel decrease should have been given March - July 2003 in light of their savings at the pumps from the previous fall/winter.

Its nothing more than another increase in fees without calling it an increase in fees.

Malcolm

Message 10 of 38
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Canada Post - Hard to believe, but ....

redsniper88
Community Member
One would think that with the increased business Canada Post has been experiencing with all thanks to online ordering that they would be happy with their prices.

Personally, I am so fed up with them. I can't offer good shipping costs to the USA or anywhere else anymore. Their 'fuel surcharge' is a joke - they hire out contractors to deliver parcels. I had a card arrive at my door to adv of a package pick up (it was the camera) but when I went to retrieve it at the Post Office - there was no sign of it. Canada Post would not take any responsibility for the missing camera - claiming I would have to deal with USPS who would not deal with me because I was not the sender. I guess whoever they 'contracted' to deliver parcels in my area stole the camera. I lost $600. usd - gee, thanks CP!

Anyone know their eBay auction name? I've had a few packages gone astray and wouldn't be surprised if Canada Post was selling them off on eBay.

Also...does anyone know of a cheap way to ship to the USA? Purolator, UPS and Fedex are out of the question.

thanks!
Message 11 of 38
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Canada Post - Hard to believe, but ....

shoplineca
Community Member
They have two auction names. You can probably find them if you go to their web site.

One id is for selling the infamous "lost" packages where they claim to have exhaisted all avenues for finding the owner or the sender.
The other id I believe is for selling CP paraphanelia (stuff with the CP logo on it) and I assume surrent issues of collector's stamps.

Their former Chairman "Ouellette" can take responsibility for the rip offs.

Malcolm
Message 12 of 38
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Canada Post - Hard to believe, but ....

spidersportsgoods
Community Member
I am really surprised at why people do not want to ship via FedEx. I am getting pretty decent discounts for them for relatively low volumes. In some cases the prices are cheaper than Canada Post and their service is amazing. My UK packages are delivered within 3 days and customers have never been happier. Even packages shipped within UK takes 5 days to delivery.
Am I missing something here?
Manuj
Message 13 of 38
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Canada Post - Hard to believe, but ....

llee2
Community Member
redsniper88,

"cpcauction" is their handle for the so called "lost" parcels.
Message 14 of 38
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Canada Post - Hard to believe, but ....

shoplineca
Community Member
spidersportsgoods
Fedex's reputation is that of being the worst major carrier in North America for several reasons, including:

They are the worst at settling claims.
They farm out most of their deliveries to 3rd party, local courier companies (the cheapest they can contract).
They have the worst published on-time delivery record of all carriers.

This is NOT my personal experience however the US Power Seller Board will often have threads about the horrible experiences with that carrier and there are many more than the 3 I posted here, from recollection.

If they are working well for you then dont make a change and enjoy getting stellar service at a fair price.

I have an account with them (although I havent used it yet) and appreciate that they can handle larger items than the other carriers for a reasonable charge should I have a need in the future.

Malcolm



Message 15 of 38
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Canada Post - Hard to believe, but ....

dis-and-dat
Community Member
I've just got off the phone from the Online Business Centre at Canada Post -- Trying to get a "competitive" rate for small packet air to the US --- It's not going to happen. Only can get a reduced rate for small packet surface.
Most of my customers are in the U.S., it's getting hard to compete for efficent and speedy delivery to the U.S.
They also said that parcel Post to the U.S. would be increasing January 1, unable to quote increase rate at this time.
According to the directive that is noted above "Most will not be affected....as they use primarily Canadian services....etc"
Fine for average citizen...BUT...what about small business?
As a small business trying to compete against U.S. mail services, I am scratching my head trying to figure out a way to address Canada Post on the issue of Small Business mailing to the US.
True that surface rates are lower, but because of delivery times are inefficient for building Customer confidence. The Venture 1 Program doesn't address all types of mailing (barely scratches the surface except for Premier services such as ExpressPost and expedited, which is really a glorified surface delivery).
HOW might one go about starting a movement to get Canada Post to better address small business issues, as most are not attached to any major lobby group that might effect any changes (ie. Chambers Of Commerce, etc.)
Any suggestions about how to start a movement to address these issues would be helpful (The number of us on eBay isn't just small potatoes!!) If the government is to encourage Entrepreneurship as a bigger part of the Canadian Economy, there must surely be a sensible way to get them to help address the problems of competition.
Message 16 of 38
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Canada Post - Hard to believe, but ....

I'd sign a petition. 🙂
Message 17 of 38
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Canada Post - Hard to believe, but ....

shoplineca
Community Member
dis-and-dat
You need to contact Todd (your-chic-shopper). He is in Vancouver (I am assuming you are in Vancouver).

His business makes regular trips to the US for mailing with USPS. I believe at one time he was charging $1 per parcel to take other Seller's items down for them but you would have to check it out with him first.

You would set up an account with one of the US online stamp businesses to print your own US stamps. Any shipping products that you need will be shipped to you free of charge by USPS (I think you can order online).

All of your items would be shipped in the US via their Media Mail service which is a fraction of what you are paying here (I think less than $2 USD).

Malcolm

Message 18 of 38
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Canada Post - Hard to believe, but ....

auctiondropnship
Community Member
your-chic-shopper
Who is that ?? lol
.
Auction Drop N Ship
Drop It, Sell It, Ship It

Canada's Ebay Drop Off Store
Message 19 of 38
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Canada Post - Hard to believe, but ....

shoplineca
Community Member
Do a detailed search by Seller and put in the name "your-chic-shopper" and send him a message that you are interestsed in having your items shipped via USPS and you are in Vancouver.

He is the CP and USPS pro here, no doubt about it. By far the most experienced in dealing with both carriers and is a great help to Sellers on these matters.

He also teaches 'eBay' (gives classes in how to sell).

Malcolm
Message 20 of 38
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