Canada Post Ends Door-to-Door Delivery for 620K Addresses

Canada Post announced a significant operational restructuring that will convert 620,000 addresses—485,000 new plus 136,000 previously announced—from door-to-door delivery to community mailboxes by 2027. 15 billion in 2025 and eight consecutive years of negative results. The conversion follows a recently ratified labor agreement with the Canadian Union of Postal Workers, which unlocked approval for operational reforms previously constrained by labor uncertainty. For supply chain and logistics professionals, this development signals both challenges and opportunities in Canada's parcel and mail delivery ecosystem.

The shift to centralized delivery creates operational disruptions for shippers relying on residential door-to-door service—particularly small businesses, e-commerce sellers, and rural operations—while simultaneously reducing delivery flexibility and potentially increasing failed delivery attempts or package handling delays during the transition period. However, the move addresses legitimate cost pressures: community mailbox delivery is substantially cheaper per unit than individual address coverage, and over 80% of Canada Post parcels already fit within centralized compartments, suggesting feasibility. The restructuring also enhances security and positions Canada Post to compete more effectively against nimbler private carriers that have captured market share during postal service decline. S.

Postal Service pursuing similar efficiency measures. Supply chain teams should anticipate temporary service disruptions during 2026-2027 conversions in affected communities (Halifax, Ontario, Calgary, and 34 others), evaluate alternative carriers for time-sensitive shipments, and prepare contingency plans for customers located in transition zones. The long-term implication is a modernized—but less flexible—Canadian postal infrastructure that prioritizes financial sustainability over service breadth.