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July 26, 2006

Canada Post announces new shipping solution

Ottawa - Canada Post announces the introduction of a new international shipping service called Light Packet. An economical solution that facilitates the movement of lightweight, low-value goods to the United States and other international destinations, Light Packet has been designed to suit the needs of Canadian eBay members as well as other customers. The new service, which is priced 70% below the Small Packet service for shipments of goods up to 100 grams, is an investment by Canada Post to encourage Canadians to comply with existing customs and other regulatory requirements, and is a complementary addition to Canada Post's existing suite of international services.

"Reacting to the needs expressed by eBay members and other customers for reliable and affordable shipping services, Canada Post will introduce Light Packet at the same rate as Letter-post", said Gail Ryan, General Manager, International Product Management.

Last year, Canada Post became aware that small goods such as CDs and DVDs were being shipped via Letter-post, a product reserved, by regulation, for paper-based items only. Recognizing that the next available option, Small Packet, could prove expensive for its customers, Canada Post extended US/International Letter-post rates to applicable Small Packets sold at retail outlets, until a definitive solution could be found. As a result of numerous consultations with Canada Post customers, Light Packet was developed to provide that solution. The new product ensures that shipments to the US and other international destinations possess the appropriate customs documentation and complies with regulatory requirements at a more affordable price than Small Packet.

Effective August 21st, pricing for this new service will be equivalent to the corresponding Letter-post rates. For example, a 100 grams USA Light Packet item fitting the dimensions of Letter-post will cost $1.78, the same as USA Letter-post. Light Packet pricing will continue to be linked to Letter-post pricing until further notice. As an example, in January 2007, Letter-post prices will increase by 4% to $1.86 for 100 grams, and Light Packet will match that price. For the other weight steps, Canada Post will preserve the same cost per gram that currently exists on Letter-post rates.

"Our customers' success is our success. By limiting the financial impact related to sending small goods to other countries, we are working with Canadian businesses to ensure their prosperity and longevity," concluded Ryan.

Available exclusively at post offices, Light Packet will be the most cost-effective choice for shipping CDs, DVDs and other small goods (measuring up to 27 cm x 38 cm x 2 cm and weighing up to 500 grams) outside of Canada.


For more information
Media Relations
613 734-8888

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