USPS vs Canada Post

[musicyouneed]

Two shipments both sent off the same day Oct 3, USPS cost $2.77 USD and was delivered Oct 7/17 in Kansas from Blaine Washington.  The other was sent expedited using the free Tues, would have cost $15 Cdn and it wont be delivered until the 17th.  Now how is that for service.  What are they using for delivery, donkeys?

[hlmacdon]

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@pjcdn2005 wrote:

USPS doesn’t receive money from tax payers so it isn’t subsidized by the government but as you mentioned, Canada Post serves a small population in a huge area.  I’m sure that is at least one reason why they are more expensive than USPS.

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Basically yes. Volume is a huge problem for Canada Post given the geography. USPS' cost structure works because of the volume of the given service areas means you can setup very efficient hub and spoke systems whereas with Canada...well not so much. CP doesn't make much on their key volume retail accounts as they are usually fighting tooth and nail with UPS over costs to get that package volume.  USPS cuts deals but they have a more transparent cost structure that services all but the top accounts. It isn't difficult to setup as a small business in the US and have a reasonably competitive price/delivery system to your end customers. In Canada we are stuck in a chicken and egg scenario with pricing and volume where you have  a relatively small customer base and high logistics costs. I would be interested to see a study where we see the number of times the average household sends a package through Canada Post.

[marnotom!]

Just to add to your excellent post, @hlmacdon, I think the fact that private sector carriers such as UPS contract out to Canada Post the "last leg" of delivery of items destined for rural/remote areas speaks volumes (pun slightly intended).

[cumos55]

Before one says the USPS is better off than Canada Post....  one should read the Wikipedia report   for the United States Postal Service on the internet.

USPS  in many   situations is  experiencing the same difficulties as Canada Post..

The following came from that Wikipedia report........

(1) Less letter mail  more parcel mail

(2) Rural versus urban delivery

(3) Losses  in the billions of dollars in some years

(4) pension  problems... and more  ....as it relates to employees.... 

(5) Closing postal outlets.....  

(6) The USPS desire for no Saturday delivery was blocked by the federal government.

(7) Competition from services such as UPS and Fed Ex..... 

(8) It should be noted that for remote areas, UPS and Fed Ex transfer the mail to USPS for delivery.....  the same relationship for Canada Post in Canada's remote areas....

USPS is adjusting... but has lost a lot of money in some years. USPS is not subsidized,  but does borrow money from the federal government  at a very low rate of interest.

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Th future for USPS could mean a significant change.....such as 

--- Community mailboxes.....  This is being done in some situations... as reported on the internet

--- A definite change in type of service......  such as international mail is airmail only became a reality a few years ago.

---  Media mail is a low cost USPS option....  This cost could change dramatically.... and would correct much of the deficit encountered.

Also USPS is very much federal government regulated

[rose-dee]

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@pjcdn2005 wrote:

USPS doesn’t receive money from tax payers so it isn’t subsidized by the government but as you mentioned, Canada Post serves a small population in a huge area.  I’m sure that is at least one reason why they are more expensive than USPS.

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No, I specifically didn't use the term "subsidized" earlier.  But USPS is supported in other ways (indirectly through government regulation and directly through beneficial financial arrangements) which CPC isn't.  

The geographical realities and larger population are no doubt a large part of the equation, but even with these advantages, USPS has been struggling over the past few years (or so I've read). 

I've actually never understood why our federal government didn't continue to subsidize CPC as a vital, even essential service to both individuals and business, rather than cutting it loose to fend for itself.  Of course that gets into the China argument.  

[dutchman48]

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@rose-dee wrote:

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@pjcdn2005 wrote:

USPS doesn’t receive money from tax payers so it isn’t subsidized by the government but as you mentioned, Canada Post serves a small population in a huge area.  I’m sure that is at least one reason why they are more expensive than USPS.

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No, I specifically didn't use the term "subsidized" earlier.  But USPS is supported in other ways (indirectly through government regulation and directly through beneficial financial arrangements) which CPC isn't.  

The geographical realities and larger population are no doubt a large part of the equation, but even with these advantages, USPS has been struggling over the past few years (or so I've read). 

I've actually never understood why our federal government didn't continue to subsidize CPC as a vital, even essential service to both individuals and business, rather than cutting it loose to fend for itself.  Of course that gets into the China argument.  

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Our government sticks their nose in, but not with financial support!

[yifanxu0428]

One time i order something on amazon.ca latex shark mask  the seller shipped by chinapost it arrived in Canada after it was delivered by Canada post   but they want me to pick up on another location in Canada post in a UnIPRIX shop  

but instead they send me a paper to pick up over there bad service canada post:(  

[kh-leslie]

Hi everyone,

Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread if you wish to continue to discuss this topic.

Thank you for understanding.