Purolator and UPS have stopped shipping packages from some courier companies to deal with the large volume of shipments caused by the Canada Post strike. This has caused delays during the peak holiday shipping season.

"The Purolator network has experienced disruptions due to severe weather conditions and a significant increase in shipment volume," Purolator said in an email. The company suspended services for some business partners this week, stressing that the decision was made to ensure the safety of employees and prioritize critical shipments.

Companies like eShipper and ShipTime, which act as intermediaries between small businesses and large companies like Purolator and UPS, are now banned from shipping packages through these companies.

eShipper has announced in a notice to its customers that no packages will be processed or shipped by these carriers for 48 hours starting Wednesday.

One of the company's customers, Montreal-based Felix & Norton, which ships its handmade cookies across Canada, said the outage could affect their entire holiday season. "This is a really maddening and infuriating situation, especially for those who don't even use Canada Post," said Simon Pekin, the company's chief executive.

Pekin added that most of their business depends on shipping products and now they cannot process orders due to lack of access to shipping services.

Companies such as Purolator, UPS, FedEx and DHL are unable to fully compensate for Canada Post's capacity due to the high volume of requests. This situation has also increased transportation costs during the peak demand season.

Meanwhile, Canada Post has announced it is considering new proposals from the union representing more than 55,000 postal workers, who are demanding higher wages and expanded weekend service.

While some smaller companies struggle to find a foothold due to the gap in the market, experts believe Canada Post will face a challenge to regain market share after the dispute ends.

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