By 2024, 21.2% of total retail sales will happen online. Canadian eCommerce is spreading its wings but the wind beneath is the robust logistics network that empowers thousands of brands to deliver hundreds of thousands of products safely and on time to the end customer. Without logistics companies working tirelessly all year round, eCommerce would be challenging. In this blog post, we will talk about the top logistics companies in Canada in 2024.
In the dynamic landscape of Canada’s economy, these companies play a pivotal role in optimising supply chains, reducing costs, and enhancing efficiency. As we enter 2024, let’s focus the spotlight on who are the top logistics companies driving innovation and excellence in the Canadian market.
Basis of comparison
Some would say great logistics is just about shipping costs. Some would argue it’s about the technological edge. What makes a top logistics company is a variety of factors. Some of these include –
- Shipping costs
This is the most important factor for an eCommerce business when it comes to picking the top logistics provider. Lower shipping costs are a boon for small businesses. Because of shipping costs, many businesses fail to survive beyond a year.
- Delivery Speed
Fast shipping is highly desirable in eCommerce. But here, we would talk about only those companies which keep their promises and not just boast of fast deliveries.
- Tracking and visibility
Waiting two days for the tracking link to show the orders is a thing of the past and the best carriers know that. An efficient tracking system translates to a better delivery system.
- Address Validation and accuracy
Most packages are lost because of address inaccuracy. This is where address validation takes place when choosing the top logistics companies for eCommerce.
- Delivery flexibility
Delivery flexibility refers to different delivery options that a carrier provides. E.g. – hold at the location.
- Automation
Many carriers like Amazon have embraced AI. AI innovations in the supply chain reflect a logistics company’s long-term vision.
- Customer Support
Nobody likes to wait two days to find out what happened to their orders. Responsive and robust customer support is an accurate judge of a carrier’s overall offerings.
- Sustainability
Worldwide, eCommerce used around 2.1 billion pounds of plastic packaging in 2019. In the long run, only those who truly invest in sustainability will stay afloat and profitable.
- Minimum Volume Commitment
Minimum volume commitment puts eCommerce businesses at a disadvantage. Most eCommerce businesses do not ship products in bulk and therefore miss out on deals and offers. A top logistics company should deter themselves from having volume commitments in order to encourage more eCommerce.
- Free Pickup
This offering may not seem like a big deal but from businesses shipping from one end of Canada to another, this is god-sent. Free pickups are provided by a handful of logistics companies that prioritise eCommerce over traditional businesses.
Keeping these points in mind, we came up with seven logistics companies in Canada that eCommerce businesses could choose from. No carrier is flawless. Each has its share of strengths and weaknesses. However, when it comes to logistics companies, the less informed ones prefer national carriers more. This is a mistake. Regional carriers offer better discounts and are tailor-made for eCommerce. Scroll down to see why.
1. ShippingChimp
Made specifically to cater to eCommerce businesses in Canada, ShippingChimp starts shipping at $5. With low shipping costs, warehouses located strategically across all major provinces, very responsive customer support and advanced technology, ShippingChimp makes it easy for eCommerce businesses to offer free shipping and faster delivery timelines.
| Strengths | Weaknesses |
| ✅Shipping costs start at $5 | ❌No perishable items |
| ✅No minimum value commitment | ❌No temperature-controlled items |
| ✅Free Pickup across all tiers |
2. Canada Post
Canada Post Corporation maintains its relevance as a key player in the logistics landscape, serving as the backbone of the country’s postal and parcel delivery network. With an extensive reach spanning urban centres and remote regions, Canada Post remains a top contender.
| Strengths | Weaknesses |
| ✅More postal area coverage | ❌Tiered pricing structure |
| ✅Sustainability | ❌Limited tracking and visibility |
| ✅Free Pickup for Priority parcels | ❌Customer satisfaction |
3. DHL
DHL Express stands out for its unrivalled expertise in international shipping and logistics, making it a top choice for businesses engaged in global trade. With a strong presence in Canada, DHL offers expedited shipping services, customs clearance, and end-to-end supply chain solutions.
| Strengths | Weaknesses |
| ✅Fast delivery | ❌High shipping costs |
| ✅Time-definite service guarantees | ❌No domestic shipping within Canada |
| ✅Responsive support | ❌Tracking system not integrated with website |
4. FedEx
FedEx Corporation stands tall as one of the premier logistics providers in Canada. Offering a diverse range of solutions, including express shipping, freight forwarding, and e-commerce logistics, FedEx is always on the list.
| Strengths | Weaknesses |
| ✅User-friendly tracking system | ❌ Very high shipping costs |
| ✅Eco-friendly initiatives | ❌Address validation issues |
| ✅Free pickups Monday through Friday | ❌Limited flexibility in delivery (does not offer ‘hold at location’ or ‘signature required’ deliveries) |
5. UPS
As Another heavyweight in the logistics arena, UPS remains a cornerstone of Canada’s supply chain infrastructure. Renowned for its extensive network, UPS provides a wide array of services, including package delivery, freight transportation, and supply chain management solutions.
| Strengths | Weaknesses |
| ✅Invests in automation | ❌High shipping costs |
| ✅Real-time tracking | ❌No Free Pickup |
| ✅Comprehensive tracking system | ❌Slow delivery speed |
6. Purolator
As one of Canada’s leading integrated freight, parcel, and logistics solutions providers, Purolator continues to play a vital role in connecting businesses and consumers across the country. With a focus on reliability and customer-centricity, Purolator offers a comprehensive range of services, including domestic and international shipping, freight forwarding, and warehousing.
| Strengths | Weaknesses |
| ✅Excellent Customer Support | ❌Limited tracking |
| ✅Guaranteed delivery within a specific timeframe | ❌High shipping costs |
| ✅Preferred for speed and efficiency | ❌Ineffective Customer Support |
7. XPO Logistics
Another logistics company that Canadians trust is XPO Logistics. XPO has continued to evolve and expand its offerings with time. They have an extensive network and are technologically driven.
| Strengths | Weaknesses |
| ✅Advanced Technology | ❌High shipping costs |
| ✅Sustainability initiatives | ❌Delivery experience issues |
| ✅Responsive customer support | ❌Fluctuating delivery speed |
Which is the cheapest of all?
Although, as mentioned before, cost can not be the only factor when judging the capabilities of a carrier, it sure is a significant one. More so for an eCommerce business. This is why this chart will help those businesses that are looking for cost-effective options.
| 2 lbs | Savings % | ShippingChimp | Others |
| Ontario to Ontario | 57.7% | $5.30 | $30.6 |
| Ontario to other | 73.6% | $5.88 | $43.31 |
| 5 lbs | |||
| Ontario to Ontario | 60% | $5.66 | $33.82 |
| Ontario to other | 65.9% | $6.89 | $45.43 |
| >10 lbs | |||
| Ontario to Ontario | 56% | $7.15 | $40.09 |
| Ontario to other | 55.7% | $9.24 | $51.47 |
Future of eCommerce logistics
eCommerce logistics need to listen to the growing needs of eCommerce businesses. Some carriers are moving swiftly and are very responsive towards the rising trends in eCommerce. ShippingChimp makes sure that businesses can ship without the fear of fluctuating volumes and so has removed any volume restrictions. FedEx through its FedEx Delivery Manager, allows customers to customize delivery options according to their needs. UPS through its My Choice service, provides a similar level of control to its customers.
Key Points –
- The top 7 logistics companies in Canada in 2024 are Canada Post, ShippingChimp, FedEx, Purolator, DHL, XPO Logistics and UPS.
- The most affordable option for an eCommerce option would be a regional carrier.
- There have been several technological advancements but choose those carriers which provide cheap shipping along with tailor-made features for eCommerce.
In the fast-paced world of modern commerce, logistics companies serve as the linchpins that keep supply chains moving smoothly. The top logistics firms highlighted above exemplify excellence in service delivery, innovation, and adaptability, making them indispensable partners for businesses operating in Canada.
- An Experts’ Guide to Cheap Shipping in Canada - August 28, 2024
- Why is Express Shipping expensive? Experts weigh in - July 23, 2024
- Which Canadian carriers deliver during the weekend? - June 7, 2024
