4 Reasons Behind Canada Shipping Packages Delay Amidst COVID-19

Today's COVID-19 pandemic has changed our lifestyles. Surprisingly, it has also opened bigger opportunities for the shipping industry as people opt to shop online and have their things delivered than risk their health by going out to physical stores. 

However, the health-related restrictions come with a spike in demand, causing a huge delay in Canada shipping packages. If you're wondering what's taking your packages so long, here's what's happening behind the scenes of shipping services in Canada.

Surge in Demand

As social distancing measures forced us into isolation, analysts observed significant changes in buying behaviour. The surge in e-commerce purchases during the quarantine period is on a par with year-end holiday demand, and buyers are noticeably buying in bulk as a side effect of panic buying.

No matter how low the shipping fee is from Canada to the United States, online shoppers find comfort in free shipping services offered by e-commerce sites. Forbes reported that there had been an impressive 146% more US and Canada e-commerce orders in April 2020 compared to that in 2019. 

Unfortunately, this record-breaking surge in demand overwhelmed logistics and shipping companies. As a result, they dealt with it by cost-cutting, including laying off personnel.

Dramatic Decline in Manpower

The demand notwithstanding, the logistics industry continues to struggle operations-wise due to the pandemic's restrictions, and it is not alone in this struggle. The pandemic has turned from a health crisis into an economic crisis. According to the International Labour Organization's preliminary assessment of COVID-19's impact on the labour force, around 25 million people worldwide are set to lose their jobs.

Business owners are left with no choice but to cut down on manpower to mitigate the financial blows. And with minimal staff facilitating operations and meeting an overwhelming demand, you can expect a significant amount of backlogs and delays. If you're wondering how long does Canada standard shipping take, you can expect the process to take 15–21 days. That’s thrice as long as the normal time because of the cuts in manpower.

Closed Borders

The pandemic also poses a threat to the global village. What used to be free trade between nations now has numerous restrictions on travelling and shipping.

In Canada's case, the border between it and the United States has been closed since March 21 last year. The closing of borders has especially affected Blaine, the town in between Washington and British Columbia. Blaine has served as a drop-off point for cross-border deliveries and has benefited the most from the success of Amazon Prime.

Increase in Cost

Rav Kapoor, CEO of international agricultural supply chain company ETG Commodities Inc., admits that the pandemic has caused an increase in international shipping costs. Kapoor says there has been an additional 2 to 3.5% increase in the cost of exporting in 2020. This increase is exclusive of the cost that it takes to pay for warehouse sanitation, PPEs and border crossing delays.

Additionally, both the United States and Canada have imposed an increase in export taxes on certain materials. Effective August 16, 2020, there will be an additional 10% shipping from Canada to US customs fee for aluminum products. This tariff increase includes aluminum containing-products like kitchenware, furniture and sports equipment, among many others.

This increase can take a huge blow on small business shipping Canada as they have to face not only additional shipping costs but also taxes and expenses for extra sanitation and occupational safety. If you’re wondering how much the shipping fee is from Canada to the US, here are the current rates.

*Price is based on shipping to New York through the national carrier.

Moving Forward

The logistics and shipping industry is not alone in facing the challenges brought about by this global health and economic crisis. Despite the dangers posed by COVID-19, it is impossible to halt trade and the supply chain. Recognizing how essential it is to deliver goods around the world, shipping companies continue to provide shipping solutions to facilitate the safe exchange of goods.

Should you want to know how Canada shipping packages have adjusted in terms of cost, policy and safety measures, make sure to contact Stallion Express today for a free consultation.

Nicasio Co III