Deltone, there is no question that USPS has it all over CanadaPost in terms of economy of scale. But that is only part of the reason for the difference in postage costs.
Keep in mind that a ten fold larger population only means that USPS can send ten trucks from point A to point B whereas CanadaPost would send one. Many costs of moving the mail are fixed (wages, fuel, vehicles, etc.) whether north or south of the border so I wouldn't rush to use that as a defence for the astronomical postage we are required to pay for service within Canada.
I stand to be corrected, but CanadaPost also employs many private contractors to reduce it's costs in moving the mail. I believe much more so than USPS.
No much of the high cost of moving the mail within Canada must fall at the feet of the postal unions that work so diligently to protect their membership. Although fewer in recent years, Canada has always suffered postal disruptions that wind up raising the costs of a basic stamp. I'm trying to remember when I last heard of a general postal disruption on the south side of the border but it just isn't coming to me.
The introduction of the Expedited Parcel-USA service is a perfect indicator of how our system has gone wrong. Bravo that we can finally secure DC and for just a 20% increase in rates.
The use of the word Expedited to describe the service was obviously determined by a marketing type because the service is far from that. I am currently trying to explain to a customer in California why her package (shipped Aug 29th) still has not reached her. In fact, the DC # does not yet appear in the USPS system. A quick check reveals that CanadaPost scanned the item in Kitchener/Waterloo on the 29th and next in Mississauga on the 6th of Sept. (an hour away). A call to CanadaPost gets the response that if I wanted it in California sooner I should have used ExpressPost.
No, I'm afraid that much of the reason for our extremely high postage costs are as a result of too many inefficiencies in the system and the prevailing attitude within the rank and file of CanadaPost that customers can like it or lump it. The unfortunate part of it is that Canadian business has to compete in a world market when we already have so many millstones around our neck. CanadaPost just happens to be one of the larger ones.
Bill
