CN storage fees at Brampton

Expectations are high that the pace of cross-border trade should match that of other parts of the economy. Unfortunately the movement of goods across borders is complicated not only by the rules and regulations of governments but also by the complexity of paths that these goods take as they journey from their country of origin to the importer’s premises. Everyone tries to work together but sometimes the business needs of one are not entirely compatible with the business decisions of another.

The implications of CN’s decision to reduce free storage time at its Brampton Intermodal Terminal and the dramatic increase of the daily storage fee have been felt throughout the supply chain. Consequently, importers are beginning to understand that because storage is no longer related to service failure, they must now make allowances for storage costs that arise as a result of CN’s business decisions.There are four significant factors that are contributing to the increased frequency of storage charges. These are:

1) enforcement of CBSA requirements relating to time frames for release document submission

2) the establishment of the Canada Border Services Agency penalty program (AMPS), which
requires that documentation must be accurate and compliant with the regulations governing submission. Compliance demands accuracy. No one wants a penalty applied to his business.

3) a reduction in "free time" at the terminals (eg CN used to give 5 free days plus the first weekend, this has now been reduced to 2 days including the weekend) and

4) a dramatic increases in storage fees (eg CN used to charge $50/day, now at $200/day or part thereof).

Here is a scenario showing that in some cases storage fees are unavoidable:
ocean container arrives at CN BIT Thursday night but freight is not deemed available for pickup
customs release has already taken place local cartage carrier will not arrange pickup unless freight is available at CN (ie Friday morning)
CN requires 24 hour notice to schedule pickup

24 hour notice translates to next business day - Monday
free time is only 2 days - storage starts Sunday at $200 / day or any part thereof
Monday morning pick-up and delivery - 2 days storage = $400

To further complicate matters, someone must guarantee payment of the storage fees before the goods are released from the terminal. If no one in the importer’s operation is available to guarantee that payment, the goods cannot be picked up. We strongly urge all clients to identify person(s) within your organization who are authorized to guarantee payment. When your customs broker contacts you, he will advise you of how the storage fees were calculated and will ask you to send written authorization guaranteeing your willingness to pay those storage fees. Without this, the broker cannot proceed.

As brokers and importers, we work together as supply chain partners. By providing your broker with relevant documentation about shipments traveling by CN as soon as you can, and by assigning a member of your organization responsibility for decisions regarding storage charges, we can mitigate the possibility of unnecessary charges. Without 24/7 operations, there will be times when storage fees cannot be avoided but as brokers we are committed to doing everything possible to minimize the costs associated with CN’s new storage fee regime.

(Source:http://www.cscb.ca/070/pb_fs04_e.htm)