The container arrived at the Port of Vancouver on Monday. Inside: $280,000 worth of consumer electronics. The ocean voyage was smooth. Customs clearance was straightforward. Everything looked good.
Then nothing happened. The container sat.
Fifteen days later, the import manager got a panicked call: “Your container’s been at the terminal since it arrived. You’re past your Last Free Day. The bill is $7,500—and climbing $500 daily.”
The problem? The export broker sent the arrival notice to the wrong email address. One typo. The notification sat in someone’s spam folder while the meter ran.
Final cost: $11,250 CAD in port demurrage, plus $11,250 USD in steamship charges. Over $22,000 in fees for a container that was ready to pick up the entire time.
This isn’t rare. This is international logistics. And it’s completely avoidable.
The Last Free Day: Where Money Disappears
When your container arrives at port, the clock starts immediately.
Free time is typically 3-5 days to pick up your container without charges.
Last Free Day (LFD) is the final day before fees begin.
After LFD, demurrage and detention fees start accumulating:
- Port demurrage: ~CAD $500 per day per container
- Steamship detention: ~USD $500 per day per container
- Combined: $1,000+ per container per day
The nightmare scenario: 10 containers sitting 15 days past LFD:
- Port fees: CAD $500/day × 10 × 15 = CAD $75,000
- Steamship fees: USD $500/day × 10 × 15 = USD $75,000
- Total: $150,000 in avoidable fees
Why Containers Sit: The Communication Breakdown
The #1 cause of demurrage disasters isn’t port congestion or customs delays. It’s information not reaching the right person.
Common failures:
Wrong contact: Email addresses change. Personnel turnover means the listed contact left months ago. The notification goes nowhere.
Wrong party: The broker sends the notice to the freight forwarder instead of the importer. Or to the warehouse instead of the logistics coordinator. Everyone assumes someone else is handling it.
Never received: Spam filters catch it. Corporate systems block it. It lands in an unmonitored inbox.
Never sent: In the chaos of managing hundreds of shipments, the broker forgets entirely.
Meanwhile, your container sits. LFD passes. Fees accumulate. Nobody knows until the invoice arrives.
Two Scenarios: What Makes the Difference
Scenario A: Communication Works
Day 0: Container discharged. Broker sends arrival notice immediately. Import manager receives it within hours.
Day 2: Customs clearance complete. Drayage carrier already scheduled.
Day 3: Container picked up and delivered to warehouse. Unloaded same day.
Day 5: Empty returned to terminal.
Total fees: $0
Scenario B: Communication Fails
Day 0: Container discharged. Broker sends notice to old email. Nobody receives it.
Days 1-5: Container sits. LFD passes on Day 5.
Days 6-10: Container continues sitting. Fees accumulating. Still nobody knows.
Day 11: Customs broker notices during file review. Calls import manager in panic.
Day 14: Container finally picked up—9 days past LFD.
Day 18: Empty returned to depot.
Total cost: ~$11,000 CAD for one container, one communication failure.
Multiply by 10 containers: $110,000+
How Smart Companies Avoid the Trap
1. Automate Visibility and Alerts
Use a Transportation Management System (TMS) or visibility platform that:
- Tracks every container from departure through delivery
- Monitors Last Free Days automatically
- Sends escalating alerts at 72, 48, and 24 hours before LFD
- Centralizes communications between brokers, carriers, and internal teams
When one person misses an alert, others see it.
2. Build Notification Redundancy
Never rely on single notification channels.
Best practice:
- Export broker sends to primary AND backup contacts
- Import manager confirms receipt and forwards to customs broker and carrier simultaneously
- Daily dashboard shows all containers and LFD status
3. Pre-Clear Customs Before Arrival
File customs documents up to five days before containers arrive. By the time it hits the terminal, customs approval is already granted. You can schedule pickup for Day 1-2 instead of waiting until Day 3-4.
4. Use Proximity Warehousing
When your warehouse is 10 kilometers from the terminal instead of 60 kilometers away, you have flexibility that matters.
The proximity advantage:
- Respond within hours when pickup windows open
- Same-day pickup and unload is realistic
- Quick empty returns before detention periods expire
- Lower drayage costs make early pickup economically feasible
A Delta-based facility can dispatch at 10 AM, have the container at warehouse by noon, and be unloading by 1 PM. A facility 60 kilometers away often can’t mobilize that fast.
5. Consider Transload Solutions
If you can’t unload quickly, use a transload facility near the port. Container picked up Day 2, unloaded at transload Day 3, empty returned Day 4. Your goods move to your warehouse on a flexible timeline.
Transload costs: $200-$400 per container. Detention fees: $1,000+ per day. Easy math.
6. Track Obsessively
Know for every container:
- When the vessel arrives
- When it’s discharged
- How many free days you have
- When LFD expires
- Which containers are at risk
This isn’t optional—it’s mission-critical.
The Documentation Trap
Communication failures are #1, but incomplete documentation is a close second.
Common issues:
- Bill of Lading errors (wrong consignee, incorrect container numbers)
- Missing certificates of origin
- Incomplete commercial invoices
- Wrong Harmonized Tariff codes
Each error adds days to clearance. Those days eat into your free time. By the time paperwork is corrected, your LFD has passed.
Solution: Use experienced customs brokers who review documentation before the container arrives. Fix errors while it’s at sea, not at the terminal.
Already Past LFD? Damage Control
- Pick up ASAP: Every day adds $1,000+. Premium drayage rates are cheaper than continuing demurrage.
- Unload and return immediately: Detention fees continue until the empty is back at the depot.
- Review circumstances: Terminal shut-out? Customs inspection? Document everything and dispute if charges are unjust.
- Fix your systems: One disaster should trigger a complete review. Don’t let it happen again.
The Vancouver Reality
Vancouver’s unique challenges make LFD management critical:
- Rail congestion consumes free days before you get containers
- Chassis shortages delay pickup even when scheduled
- Limited terminal hours—miss cutoff, lose a full day
- Weather disruptions close terminals or delay trucking
Three-day free time evaporates fast:
- Day 1: Container buried in stack, not accessible
- Day 2: Customs inspection adds 24-hour delay
- Day 3: Available but no chassis
- Day 4: Past LFD, fees begin
Proximity warehousing in Delta + experienced 3PL partners who understand Vancouver terminals = significant operational advantage.
The Bottom Line
$150,000 in demurrage fees delivers zero value. You’re not getting better service or faster transit. You’re paying because information didn’t flow correctly.
The solution:
- Track every container with automated alerts before LFD
- Build redundant communication so no single failure causes disaster
- Pre-clear customs to maximize free time
- Use proximity warehousing for rapid response
- Partner with logistics providers who have systems to prevent communication breakdowns
When an export broker sends an arrival notice to the wrong email, it shouldn’t cost you $11,000. When a customs broker misses a container for three days, it shouldn’t cost $3,000.
But without proper systems, visibility, and partnerships, these preventable failures drain hundreds of thousands annually.
The companies who avoid this aren’t smarter or luckier. They’ve built systems where communication failures can’t happen silently. They track. They verify. They confirm. They use proximity to their advantage.
Because the most expensive mistake isn’t the one that damages cargo. It’s the one where cargo sits perfectly fine while a meter runs, and nobody notices until the bill arrives.
About Canadian Alliance Warehouse and Transportation
At Canadian Alliance, demurrage and detention fees are communication failures disguised as logistics problems. Our Delta, BC facility at 600-4327 Salish Sea Way provides strategic proximity to the Port of Vancouver, enabling rapid response when containers become available. Our tracking systems and experienced team ensure arrival notices don’t fall through cracks, LFDs don’t pass unnoticed, and containers move from port to warehouse without costly delays. When the difference between $0 and $150,000 is proper communication and proximity, location and partnership matter.