Drayage rates fell, but container dwell didn't improve
Post-2021 shipping costs fell 70%. Container shipping from Asia dropped dramatically. Yet importers moving goods into Canada aren't delivering faster. A consolidation arriving at Port of Montreal in May 2025 takes the same 8-12 days to clear customs and reach the warehouse floor as one did in 2022. The speed paradox isn't a logistics failure. The bottlenecks shifted, and most supply chain optimization plans haven't caught up.
For a warehouse operations team, the shift is concrete. Port of Montreal processed 1.6 million TEU in 2024. Dock door availability is tighter than it was. Customs exams are still running 10-15% of inbound shipments. Rail dwell from Vancouver to the GTA added 2-3 days of buffer time over 2019 baseline, according to Transport Canada data. Labor costs at the warehouse stayed elevated. Warehouse space in major Canadian markets sits at 95%+ occupied. In this environment, speed isn't a lever you control anymore. Predictability is.
The drayage window compressed, not the dwell time
Free time on most container arrivals is 4-5 days before demurrage charges begin. That sounds reasonable until a CBSA examination lands. A hold for secondary inspection eats 18-36 hours, depending on complexity. By the time the warehouse receives the container, free time is down to 2-3 working days.
The rail side hasn't recovered. Average container dwell in Western Canadian ports shows wait times 2-3 days above 2019 levels. A 40HC from Vancouver typically sat 4-5 days in 2019; now it's 6-8 days. This isn't capacity—it's scheduled congestion. CN and CP stack inbound cars with priority to domestic shipper relationships, not cross-border consolidators. The result: an importer's supply chain window has shrunk on the tail end.
Drayage rates reflect the reality. We typically see CAD 2,500–3,500 per 40HC into the Greater Toronto Area under normal conditions, up from CAD 2,000–2,800 in 2019. Peak season (August-October) can push rates to CAD 3,500–4,200. That's a 25-35% increase over 2019, despite cheaper ocean freight. The mistake most importers make is chasing faster truck speed to offset the dwell time. Your container is not slow. It's waiting. Optimization means accepting the wait and planning around it.
Labor costs stayed high
Warehouse wages in Canada are 12-18% above 2019 baseline and stable. Statistics Canada Labour Force Survey confirms this is structural, not temporary inflation. A pick-pack operation that cost CAD 1.80 per order in 2019 now costs CAD 2.15–2.40. A single 5,000-order-per-month importer is eating CAD 21,000–24,000 annually in labor-cost increase alone.
This changes the optimization calculus. Slow throughput is expensive in a high-wage environment. Every pallet that sits in receiving waiting for location assignment is an hour of idle labor cost. Every order that fails accuracy check is rework at double labor cost. This is why dock-to-stock SLA discipline matters now. FENGYE Warehouse runs a 48-hour dock-to-stock committed SLA for inbound consolidations: pallet received, location assigned, data in WMS within two working days. That speed isn't flashy from a supply-chain-wide view, but from a warehouse labor economics view, it's tight. It means no pallets aging in receiving. No SKU location errors building up. The cycle time keeps the team moving and the facility flowing. For importers, this tightness translates to lower per-unit labor cost at the warehouse.
Consolidation is the lever
Most importers have LTL splits they don't need. A typical European supplier mix (Germany, Netherlands, France) running one or two orders per month per supplier naturally fragments into four to six LTL shipments per quarter. That looks normal. It's expensive. Four separate LTLs mean four separate customs releases, four separate receiving cycles, four dock doors consumed, four drayage windows to manage.
Consolidate those four into one 40HC, and the math changes. Drayage cost drops from CAD 4,000–5,000 (four LTLs at CAD 1,000–1,500 per LTL) to CAD 3,200 per container. You've saved CAD 800–1,800 on a single quarter. Dock cycle time drops because instead of five staggered receiving events, you have one coordinated one. Customs exam happens once, not four times. The warehouse team processes inbound more efficiently because volume is concentrated.
Real client case: Eight quarterly shipments consolidated into two 40HC containers cut drayage spend by 38% and reduced overall dock-to-stock cycle time by two days because the warehouse team handled one consolidated truck instead of five. It was not faster transport. It was fewer moving parts. That's supply chain optimization in 2025.
Space planning drives cross-dock decisions
Toronto warehouse occupancy is 96-97%. Vancouver is similar. Montreal has slightly more availability but premium space near the port is still tight. In a space-constrained market, every pallet carries rent dollars. Slow-moving inventory becomes expensive inventory.
This is where cross-dock planning shifts from nice-to-have to core strategy. When a consolidation arrives with a mix of high-velocity items (going direct to customer) and hold-for-distribution items (stocking your warehouse), routing matters. High-velocity items should cross-dock: receive, verify, load to outbound same day. Hold items go to racking for inventory management. FENGYE Warehouse consolidation services include cross-dock planning for exactly this reason.
The cost difference is real. A pallet on a 48-hour cross-dock hold might run CAD 8–15 in handling. That same pallet sitting in racking at a rate of CAD 12–18 per day (typical Montreal warehouse rates) adds up fast. A 30-day hold costs CAD 360–540. Three-month hold, CAD 1,080–1,620. Importers who optimize cross-dock rates can push high-velocity volume through and reduce the per-pallet daily storage rate for everything else.
Customs delays are now an SLA input
CBSA examination rates run 10-15% on most containerized inbound from Europe. That's not high, but it's predictable. When a 40HC lands with an exam flag, you lose 18-36 hours minimum. If you didn't plan for the exam, you've lost your drayage window, your dock door slot, and your promised delivery window.
The optimization isn't avoiding exams. It's buffering for them. Supply chain optimization in Canada now means reserving 2-3 extra days in your lead-time expectation, assuming one in every six to eight containers gets flagged for exam, and planning dock resources accordingly.
What matters to measure
Post-pandemic supply chain optimization in Canada is not about speed anymore. It's about precision: right item, right place, right dock window, every shipment. Track these metrics: (1) dock-to-stock cycle time by shipment type, (2) consolidation fill rate by supplier relationship, (3) customs exam likelihood by port and code, (4) drayage rate per container by carrier and season.
If your current 3PL doesn't provide dock-to-stock SLA reporting with enough detail to spot delays, then you're optimizing blind. The data exists. Most importers aren't asking for it.
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Where to start
Consolidation planning is the highest-ROI lever. If you're running four to six LTLs per quarter when two to three 40HC containers would work, you're leaving CAD 15,000–25,000 per year on the dock-to-stock side alone. Add drayage savings and customs efficiency, and the total opportunity is CAD 25,000–40,000 for a mid-sized importer.
If your consolidation plan is spread across multiple carriers or if your 3PL can't tell you dock-to-stock cycle time by item, contact FENGYE Logistics. That's the kind of data transparency we run on the dock every day.
Originally published at https://www.fywarehouse.com/news/optimizing-supply-chain-in-canada-after-2021-where-to-actually-focus-ff858a2c.
