When faced with a nationwide postal strike in Canada, some 3PLs completely ceased operations. For ShipBob, that wasn’t an acceptable option. They saw an opportunity to grow by demonstrating their resilience and commitment to their merchants. Through a strategic partnership with Passport, which has recently expanded to include DDP (Delivery Duties Paid) shipping services in the United States, they not only maintained operations but achieved remarkable growth during what could have been a devastating disruption.
The Challenge: More Than Just a Strike
According to a recent research study from Passport and Drive Research, 71% of ecommerce leaders view Canada as the top priority for global expansion. Any service disruptions to Canadian merchants and their customers was especially concerning for ecommerce brands who are counting on that market for growth.
The Canada Post strike during the 2024 peak holiday shipping season presented multiple challenges that threatened to disrupt ShipBob’s operations and negatively impact their ability to deliver on time for their brands shipping to consumers in Canada.
Given the nature of logistics, ShipBob understood this, but they needed to clearly set expectations with their customers about what may unfold and how ShipBob will pivot to continue supporting them.
Beyond the obvious delivery disruptions and delays, they faced the complex task of finding reliable alternative capacity to maintain service for their merchants and meet SLAs. Leveraging their broad carrier network and rate shopping capabilities, ShipBob can use alternate carriers when disruptions occur to minimize service disruptions. Passport is among these trusted carriers, enabling Shipbob to provide uninterrupted service to their merchants.
Perhaps most challenging was the need to manage merchant expectations and education around service changes – a delicate balance of maintaining confidence while implementing alternative solutions.
A Partnership-Driven Solution
Rather than accepting service disruptions as inevitable, ShipBob partnered with Passport to develop a comprehensive solution. Kevin Swearingen, Sr. Manager, Transportation at ShipBob, is responsible for all of ShipBob’s U.S. and Canada outbound parcel volume.
Together ShipBob and Passport:
- Integrated Passport’s DDU service into ShipBob’s rate shopping system, making Passport available to all merchants
- Developed an alternative delivery network covering most Canadian destinations with Passport’s cross-border and Canada Domestic services
- Expanded geographical coverage, including crucial west coast operations
- Maintained clear communication channels that kept all stakeholders informed
Turning Disruptions Into Growth
The numbers tell a compelling story of success that exceeded initial expectations:
- Maintained an impressive 92-95% operational capacity during the strike period, significantly outperforming industry averages
- Experienced substantial double-digit percentage growth in Canadian operations despite market challenges
- Effectively supported hundreds of merchants without service interruptions, maintaining business continuity
- Successfully prevented any rate increases from being passed on to merchants, protecting merchant profitability
- A quiet holiday peak season due to Passport’s reliable shipping services and communication
ShipBob’s success in Canada gave them the confidence to expand their physical infrastructure from 5 to 7 buildings, growing their Canadian presence by 40%.
Future Outlook
ShipBob’s response to the challenge wasn’t just about maintaining service – it was about growing stronger. Their expansion included doubling their Vancouver presence and adding an additional facility in Toronto, demonstrating a deep commitment to the Canadian market through significant physical investment.
“Passport has allowed us to expand our capacity and also remain competitive in the rates that we offer our merchants. We are continuing to grow….we’re physically investing in our footprint. Canada is here to stay for us.”
— Kevin Swearingen, ShipBob
Beyond physical growth, ShipBob and Passport recently launched a mutual new Delivered Duty Paid (DDP) offering to enable mutual merchant partners, like Passport Global customer Wildflower Cases, to provide streamlined international delivery to over 180+ markets.
The Power of True Partnership
The quantifiable success of our partnership can be attributed to several critical factors that make up a strong foundation:
- Establishment of clear, direct communication channels between both companies at all organizational levels
- Development of rapid problem-solving capabilities through collaborative approaches and shared resources
- Unwavering shared commitment to merchant success, placing customer needs at the forefront of all decisions
- Strategic network expansion designed to support both immediate needs and long-term growth objectives
This case demonstrates how the right partnership can turn a potential crisis into an opportunity for growth. By maintaining service levels while expanding infrastructure during a nationwide postal strike, ShipBob not only protected their merchants but positioned themselves for continued growth in the Canadian market.
“Passport supports our partnership with transparency, realistic expectation setting and speed. There are no hidden corners. I haven’t been surprised by anything, which is unfortunately a rarity in this industry. That’s given us the confidence to continue investing in the relationship and further grow together.”
— Kevin Swearingen, ShipBob
Conclusion
The relationship between ShipBob and Passport stands as a compelling example of how effective collaboration can transform market disruptions into substantial growth opportunities. Through unwavering commitment to transparent communication, reliable service delivery, and shared merchant success, both companies have not only maintained but significantly expanded their service to Canadian consumers and beyond.
For 3PLs looking to elevate international shipping capabilities and fuel the growth of their ecommerce brands, Passport provides the expertise and support needed to navigate the complexities of global expansion – all while freeing up internal bandwidth and strengthening customer relationships.
Discover how Passport can help you achieve your global potential by setting up a discovery call with our team today.
