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GAIN CONSULTING

DHL Express Canada Shutdown: Navigating the Strike

  • Kelsea Ansfield
  • Jun 17
  • 6 min read

At Gain Consulting, we’re dedicated to helping U.S. shippers overcome logistics disruptions and maintain seamless operations. On June 20, 2025, DHL Express Canada will suspend its nationwide operations due to an ongoing strike by over 2,100 Unifor-represented workers, halting international package imports starting 9 p.m. ET on June 17, as reported by Supply Chain Dive on June 16, 2025. This labor dispute, compounded by Canada’s new Bill C-58 anti-replacement worker legislation, poses significant challenges for cross-border shippers. This blog post analyzes the DHL shutdown, its implications for U.S. shippers, and actionable strategies to mitigate disruptions in 2025.


Understanding the DHL Express Canada Shutdown

The suspension of DHL Express Canada’s operations stems from a prolonged labor dispute and new regulatory constraints. Here’s a breakdown of the key details:

  • Shutdown Details: DHL Express Canada will cease all operations starting June 20, 2025, following a suspension of international package imports at 9 p.m. ET on June 17, due to stalled contract negotiations with Unifor, the union representing 2,100 workers (drivers, couriers, warehouse, and clerical staff).

  • Strike Background: The strike began on June 8, 2025, after DHL initiated a lockout, following months of negotiations since the previous contract expired on December 31, 2024. Unifor demands a 22% wage increase for hourly employees and a 42% increase for owner-operators, while DHL offers a 15% raise over five years, citing economic constraints.

  • Bill C-58 Impact: Canada’s Bill C-58, effective June 20, 2025, prohibits replacement workers during strikes, forcing DHL to abandon its initial contingency plan of using temporary labor, which it claimed would minimize disruptions. Violators face fines up to $100,000 per day.

  • Unifor’s Position: The union opposes DHL’s proposed changes to owner-operator pay, which could reduce compensation and require drivers to travel up to 100 kilometers without pay for pickups. Unifor also seeks improved wages, working conditions (e.g., clean washrooms), and limits on surveillance and automation.

  • Broader Context: Canada’s parcel sector faces additional strain, with Canada Post workers in their fourth week of an overtime ban, pushing shippers to seek alternatives like UPS or FedEx, which may face capacity constraints.

Key Takeaway: The DHL Express Canada shutdown, driven by a strike, stalled negotiations, and Bill C-58, disrupts cross-border logistics, affecting U.S. shippers reliant on Canadian routes.


Contextual Factors Driving the Disruption

Several trends and challenges amplify the impact of DHL’s shutdown on U.S. shippers:

  1. Cross-Border E-Commerce Growth: The U.S. Census Bureau reports 15% growth in cross-border e-commerce in 2024, with Canada as a key market for U.S. shippers. DHL’s 50,000 Canadian customers, including Temu, Shein, Lululemon, and Siemens Canada, highlight its critical role.

  2. Labor Unrest in Canada: The Canada Post overtime ban, ongoing since May 23, 2025, has shifted volume to competitors, straining capacity (Supply Chain Dive, June 2, 2025). The DHL strike exacerbates this, risking delays for time-sensitive shipments.

  3. Regulatory Changes: Bill C-58, effective June 20, 2025, strengthens union leverage by banning replacement workers, forcing DHL to suspend operations rather than sustain partial service (FreightWaves, June 16, 2025).

  4. Economic Pressures: DHL cites Canada’s economic landscape, including inflation and rising costs (e.g., diesel at $3.50/gallon, BTS, May 2025), as reasons to resist Unifor’s wage demands, creating tension in negotiations.

  5. Global Carrier Challenges: DHL’s planned 8,000 job cuts in Germany in 2025 (Toronto Sun, June 17, 2025) reflect broader cost pressures, limiting flexibility in Canadian labor disputes.

Key Takeaway: E-commerce growth, concurrent labor disputes, new legislation, economic pressures, and global carrier challenges intensify the DHL shutdown’s impact on U.S. shippers.


Implications for U.S. Shippers

The DHL Express Canada shutdown poses significant challenges for U.S. shippers, particularly those with cross-border operations:

  1. Delivery Delays: Suspension of international imports from June 17 and full operations on June 20 will delay shipments to and from Canada, impacting e-commerce businesses reliant on Temu, Shein, or Lululemon supply chains.

  2. Capacity Constraints: With Canada Post’s overtime ban pushing volume to UPS and FedEx, alternative carriers may face backlogs, increasing lead times and costs (Supply Chain Dive, June 2, 2025).

  3. Customer Experience Risks: 76% of shoppers expect real-time delivery updates (FedEx 2025 E-Commerce Trends Report), and delays could erode trust, especially for high-value or time-sensitive goods like those for the Canadian Grand Prix (June 13-15, Montreal).

  4. Cost Increases: Rerouting shipments or using premium services to bypass delays may raise costs, squeezing margins in a market where 68% of consumers demand low-cost shipping (FedEx).

  5. Supply Chain Disruptions: U.S. shippers with Canadian suppliers or customers face inventory delays, particularly for industries like automotive or retail (Siemens Canada).

Key Takeaway: U.S. shippers face delays, capacity issues, customer dissatisfaction, cost hikes, and supply chain disruptions due to DHL’s Canadian shutdown.


Strategic Recommendations for U.S. Shippers

To mitigate the DHL Express Canada shutdown’s impact, Gain Consulting recommends the following strategies for U.S. shippers in 2025:

  1. Diversify Carrier Options:

    • Shift volume to UPS, FedEx, or Loomis, but secure capacity early to avoid backlogs. Use platforms like Freightos to compare rates and availability.

    • Explore regional carriers for intra-Canadian routes to bypass DHL’s network.

  2. Reroute Shipments:

    • Redirect Canadian-bound shipments through U.S. hubs or alternative ports (e.g., Seattle) to minimize reliance on DHL’s Canadian operations.

    • Use Gain Consulting’s cross-border logistics services to optimize routing and customs clearance.

  3. Enhance Inventory Planning:

    • Increase safety stock for Canadian customers to buffer against delays. Leverage AI tools like Invent.ai for demand forecasting, as used by Five Below (24/7 Staff, June 2025).

    • Position inventory closer to Canadian markets (e.g., Buffalo, NY) to reduce transit times.

  4. Communicate with Customers:

    • Notify Canadian customers of potential delays via email or website updates, emphasizing transparency to maintain trust (68% of shoppers value clear communication, FedEx).

    • Offer branded tracking solutions through Gain Consulting to provide real-time updates.

  5. Monitor Strike Developments:

    • Stay informed on DHL-Unifor negotiations via Supply Chain Dive or Unifor’s X posts (@UniforTheUnion, June 11-13, 2025). A resolution could restore service quickly.

    • Prepare for extended disruptions, as Unifor’s 97% strike vote signals strong resolve (Unifor, May 12, 2025).

  6. Leverage Technology:

    • Use TMS platforms like TransImpact to reroute shipments dynamically and optimize carrier selection.

    • Implement AI-driven analytics to predict delays and adjust logistics plans, drawing from Amazon’s route optimization success (24/7 Staff, June 2025).

  7. Manage Costs:

    • Negotiate volume discounts with alternative carriers to offset premium service costs. Gain Consulting’s carrier contract services can secure favorable rates.

    • Evaluate absorbing shipping costs for high-value customers to preserve loyalty.

  8. Prepare for Regulatory Impacts:

    • Account for Bill C-58’s long-term effects on Canadian logistics, as future strikes may face similar constraints. Work with Gain Consulting to build resilient cross-border strategies.

Key Takeaway: U.S. shippers can mitigate the DHL shutdown by diversifying carriers, rerouting shipments, enhancing inventory and communication, monitoring developments, leveraging technology, managing costs, and preparing for regulatory shifts.


How Gain Consulting Can Support Your Success

Gain Consulting is your trusted partner in navigating the DHL Express Canada shutdown and other logistics challenges. Our tailored solutions ensure U.S. shippers remain agile and competitive:

  • Carrier Diversification: Access our network of UPS, FedEx, and regional carriers to secure capacity and competitive rates.

  • Cross-Border Expertise: Streamline customs clearance and rerouting through our logistics and compliance services.

  • Technology Integration: Deploy TMS and AI analytics to optimize routing and forecasting, minimizing delays.

  • Customer Communication: Develop transparent tracking and notification systems to enhance trust.

  • Cost Management: Negotiate carrier contracts and analyze cost-saving opportunities to protect margins.

  • Regulatory Guidance: Stay ahead of Canadian labor laws like Bill C-58 with our regulatory insights.


The DHL Express Canada shutdown, starting June 20, 2025, disrupts cross-border logistics, but strategic planning can turn challenges into opportunities. Partner with Gain Consulting to build a resilient, cost-effective supply chain that thrives amid uncertainty.



Contact Gain Consulting today to safeguard your Canadian operations in 2025.




Sources: Supply Chain Dive, “DHL Express Canada to Suspend Operations Nationwide Friday,” June 16, 2025; Unifor, “DHL Express Canada Workers Vote in Favour of Strike,” May 12, 2025; FreightWaves, “DHL Express Canada to Suspend Parcel Operations Amid Labor Deadlock,” June 16, 2025; Toronto Sun, “DHL Express to Suspend Canadian Service Amid Strike, Lockout,” June 17, 2025; FedEx 2025 E-Commerce Trends Report, February 18, 2025; U.S. Census Bureau, E-Commerce Statistics, 2024; Bureau of Transportation Statistics, Motor Fuel Prices, June 3, 2025; Unifor X Posts, June 11-13, 2025.

 
 
 

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