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Canada Post backs down on $5 surcharge

Canada Post says it is withdrawing the five dollar surcharge it planned to add to package deliveries to Fort McMurray.

The “service area adjustment” was scheduled to take effect today.

The company said it needed to charge extra because of its difficulties in retaining staff in Fort McMurray, and the added cost of outsourcing parcel deliveries to another company.

But it now says the decision “unfortunately caused concern and confusion in the market.”

“Going forward, Canada Post will rely on its normal pricing mechanisms for parcels to ensure we continue to offer good value in the highly-competitive parcel delivery market,” reads the company’s statement.

Fort McMurray was the only location in the whole country that was scheduled to have the surcharge applied to it.