The efficiency is that all the items for - in this instance- Canada are sent to one hub. The hub then ships pallets or even containers of goods to Canada, much more cheaply than handling each package one at a time separately.
Once in Canada, the receiving hub (apparently in Mississaugua -Canada Post Gateway) further sorts for Canadian destination.
And all the packages for Newfoundland go to StJohn's together and all those for Saskatchewan go to Winnipeg together. And those large shipments get broken down further at those hubs.
Big fleas have little fleas upon their backs to bite 'em/ And little fleas have smaller fleas/ And so on ad infinitem.
Labour cost is a very important part of any service. Any thing that lowers labour costs, even if it looks illogical, is more "efficient" or "economical" when the total cost of providing the service is considered.
Never watch tracking.
